I do not think so. Currently some countries are banned bitcoin. That affects bitcoin. But bitcoin still exists and grows. There are also some countries that encourage the use of bitcoin. I believe future bitcoins will be accepted by many countries.
I too agree on you understanding about tge topic. I do not think that a single local government can ban bitcoin. All they can do is regulate the ingoing and outgoing processes that the users of bitcoin in their country is doing. They can make rules and regulation imposing taxes on the process of converting bitcoin.