Your question awakens the question, what is the purpose of government or governance?
Off course the simple response is that government is a protective appatus of the people, usually "made" by the people. So, the government is usually responsible to its citizen. They have not really given their support to cryptocurrency because of fear but I'm certain that they don't have option because, technology and innovation is the order right now.
And how does banning Bitcoin out of fear goes along with the principle of protecting the citizens?
In reality the government doesn't care about the citizens more than a master cares about the slaves. You can't give the slaves too much freedom, and at the same time you have to keep them well fed and healthy, so that they can work. Weak countries are banning BTC because they are in this defensive stance of banning everything that gives citizens freedom.