I know that sometimes it looks like the government is trying to suppress this or that or go against a certain group of people or a certain trend, but most politicians care only about their public image. Banning Bitcoin would show them as puppets to bankers or as people who are afraid of outflow of capital from their country. In other words, it would make them look weak. It's better to tax the shit out of Bitcoin than ban it, as it will automatically scare some people away from it and bring some money to the treasury.
Sadly this is what they are doing right now, instead of banning bitcoin they are putting a lot of taxes on it which will force out the people to use it due to extensive taxation. It is true that the government has the ability to manipulate the market in theory, they can just buy a huge amount in the market without us knowing but that would also affect their economy, and just a negation from the tax they have imposed. But from what I am seeing now, from the movement in the market I know anonymous people have already occupied the market and that means they are the ones who's owning it.