In my opinion, maybe the government doesn't believe in the benefits of bitcoin and they might think that bitcoin will have a negative impact on them. Maybe they are also afraid that if they accept bitcoin then bitcoin will disrupt the economy in their country.

To be honest, every government is greedy for the control and every government wants to control most of the things and aspects of our life. However, the financial aspect is one of the crucial aspects that can control every other factor. The blockchain is something that takes away the power from centralised authorities and distributes it to the users who are actually using it. If it is legalised then it will reduce the control of the government and the government won't allow it easily.