I don't know, it seems really weird that pretty much the most solid exchange is based in a mysterious place. It was common knowledge that the headquarters were in Malta. It should be noted that the statement by the regulator does not deny it, it simply states that Binance is not regulated by it... I think we should wait for clarification from Binance before jumping to conclusions. As for Malta being crypto-friendly, this opinion has been undermined a couple of times before. Not everything is good there, see, for instance, this article.
As for the question that names the thread, I believe that only through small steps any progress can be achieved when it comes to governments because they are naturally cautious.

Why do wee need to convince the government to accept Bitcoin when in fact it is centralized and the concept of Bitcoin is decentralization. In a country where there is freedom and the legalities to utilize BTC, well I guess that is enough for us. It is for the people, the mass, and not the one at the top so instead of the government we convince the people below, in a democratic government the people holds the power. As long as I can freely use bitcoin in every transaction that I wanted to, then I am sticking with that.

Generally, I do not think that the government would be convinced to take some progress into the acceptance of Bitcoin. Primarily, the lack of democratic authority is the major reason why governments distrust the cryptocurrency. The government would prefer to stick with flat money as it is the conventional currency globally and they have major authority in controlling its flow and circulation. Now, friends, do not be impatient because this is a long process just like the acceptance of any other invention presented in the world. We have come a long way and we should continuously pursue it in our own ways to pique the interest of the majority.

Decentralization issues, market price instability and the likes. Bitcoin, as a digital currency, still has issues in the eyes of governments despite of the fact that it is being used already to some countries. But we cannot blame them because as time goes by, more people would see the benefit of blockchain technology. Its popularity is slowly spreading right now which is a good sign of progress.
there will always be achoice. Keep in mind that it is not only Bitcoin that is a digital currency. There are already digital currencies aside from cryptos that are being widely used by many people.
Those countries who are not yet adapting blockchain technology are still having measures. One main thing I think is market price stability because using bitcoin perhaps, would engage an individual to investment, risk will then arise since its market price changes from time to time.

do you foresee that happening soon or something? warning signs?

the interesting thing to ponder is that binance.com is crypto-only. there are 2 situations that come to mind re a government takedown:

-the BTC-E case. the fiat money was supposedly frozen and seized, but their cryptocurrency wallets were untouched. they were able to partially refund users that way, and spin up a new exchange---WEX.nz.
-the 1broker case. 1broker was also crypto-only. they reached an agreement with the USA government and were able to process full refunds to users.

so maybe the fallout from something like that wouldn't be so bad. you might be referring to insolvency or exit scamming though, which is obviously different.

Actually, the governments are afraid for recognising or accepting  bitcoin as a legal currency due to Blockchain's technology is so secure so they can't even control the transactions, that is main reason in my opinion, remember that every government prefers using their power on all the people, and it ca. be through a high value of taxes and other multiple ways of expoilation. In addition to that, we feel uncomfortable for using FIAT.

I've always had this believe that hardly any national will fully back and encourage the activities of any cryptocurrency based project. With the corruption level rising across every nation especially the Africa, the full adoption of cryptocurrency will only trigger more fund looting that will leave no traces.

I just hope very soon,  governments and large scale organizations will see the better side of blockchain as a disruptive giant tech and implement it's potentials in providing real-life solutions. maybe that way, more Usecases will be rolled up for cryptocurrency rather than the speculative digital assets for taking off profits being perceived about it

Generational gap. Most politicians are old, and think they know all there is to know, new fanged things won't matter to them. Until they get slowly replaced, by people from the generation that DO know Bitcoin, will then slowly gain acceptance.

In fact this is the same problem with many bankers and old fashioned billionaires. Regardless of government acceptance, Bitcoin will work just fine, and people will still use it. For some people it has to be come evident that it is unstoppable, but until they finally realize that, they will still try to oppose it.

You are telling governments to accept a type of money they can no longer manipulate. This is like telling taxi drivers to accept autonomous cars. The young people will happily embrace it while the old drivers start dwindling down until the profession is no more.

Do you remember when photography had to be developed in special shops, dark rooms, etc? Whatever happened to that business? Kodak, Polaroid, etc? (skip the brand being resold and reused by modern companies).

As with many things in technology, something came that made the previous thing obsolete, and a transitional period occurs until the legacy thing is no more.

I think cryptocurrency will eventually have its time because in the following generations, those people who are in charge in the regulation and higher ups in the government will be the new generation when time comes. If only problems like stability of value and a lot of fraudulent actions could be taken care of, Im sure it will be a good start for bitcoin and other coins.

I think, the governments are already aware about crypto and blockchain. for all we know, they have their own staffs digging this kind of work. crypto industry is already amassing billions of dollars and the numbers are showing in major crypto websites, so i don't think the governments need a lecture on that. they are also aware that there are giant companies integrating blockchain technology within their operations so it is very hard not to notice what is happening in crypto space. i guess, the hard part is from the government's end, how they can have the full control of having crypto in regulation?