The reason why they want to put a ban on cryptocurrency in some areas because of tax. Cryptocurrency transaction doesn't need any tax to send and receive any assets in the blockchain. It might appear that cryptocurrency transaction affects the economic rate of each country so they create a bill on it. Government are afraid because they don't know how to control bitcoin because it's a decentralized digital money. Well, in some cases, this bill will might help some but not that big, governments priority is their nation, they are scare to adopt this new technology.
They have to simply abandon the idea of taxing private Bitcoin transactions. What they could do is go after business, since they are by law required to keep accounting they could be also be subject to auditory on items sold or services given, and tax according to that, or the items themselves.
So when you buy the Lambo its the Lambo that is taxed, not the bitcoin used to buy it. An officer could check its plate to confirm if that car has its tax paid. Countries like Japan have yearly taxes for cars anyway, no pay no right to use public roads.
Every time a new "disruptive" technology comes, the first reaction from the old politicians is to try to "ban" it (since it takes so much effort to learn), until the use is so overwhelming that they are forced to concede. Bitcoin is no different and it probably won't be last.
