Despite the growth of bitcoin why haven't it been legalized by many nations?

[Abiky]

Tax comes before any plans any government has for their citizens. Regulations might actually be because they want to know who own Bitcoin and not because they want it. If they want Bitcoin like that, it wouldn't cost them much to buy and hold instead of waiting for people to tax. The government has the power to print money the way they like and people might not know, they know how to manipulate the numbers better without even the economists attention.

If the government are going to tax you of your Bitcoin, it's better it's kept in non custodial wallet, that way you don't have to worry the government will put eyes on your investment and be tracking your Bitcoin investment, you never can tell exactly what government can do next, they don't see money and let it go.

Using a non-custodial wallet does not guarantee you'll be safe from paying taxes. Especially if you're careless. By sending your coins from the non-custodial wallet to a centralized exchange, the government will have a trail (or track record) they can follow to collect taxes from you. It's all due to the enforcement of KYC/AML laws. That's why everything needs to be done in a decentralized and off-chain manner (in-person/Face-to-Face trades). Even better when you use a privacy coin.

Many countries in the past used to reject Bitcoin out of skepticism. It was the wild west in the early days. Now almost everyone is on-board as Bitcoin has taken the path towards "institutionalization". Of course, there are a few countries that are still against Bitcoin. But I believe that's bound to change in the future. At the pace we're going, it seems to me that we'll be living in a "hyperbitcoinized" world. This means the widespread use of Bitcoin as a currency on top of Fiat. As long as decentralization is preserved, there should be nothing to worry about.

[Rubuchi]

Major reason is tax. The government is having a hard time to tax bitcoin that’s why they are having a hard time justifying the use of bitcoin in their country.

I don't believe that taxation is the main obstacle to legalize Bitcoin in many countries because some countries have successfully set legislation to tax Bitcoin holdings and daily use with countries recognized bitcoin as a tender asset. In other words, any example can be followed and applied by the government willing to legalizing bitcoin use.
Governments always looking for new activities to apply taxation, but with bitcoin it can't apply taxation because they don't recognize it. Why they delay recognition despite it will generate more revenues from taxation? Simple because of decentralized nature of the blockchain which doesn't allow them to controle everything as they used with Fiat money.

but if I May want to ask how easily possible is it for government to tax the bitcoin and other digital crypto currencies like the altcoins among others. Is it just going to be applicable to those who are on centralized platforms or even the decentralized platforms too can be taxed? How can they deal with your anonymity ?

[endut15]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

[john_egbert]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Govs don't do steps they are not 100% sure of.

Or if they do think they would be 100% right, while in reality, they won't.

It was always like that and it will stay that way

[Agbamoni]

You should understand that these countries have their own reasons.
Not every sector is acceptable because the government wants to have full control of it. If they can't control the system, they wont accept the technology.
Bitcoin is banned in many countries because it is a decentralized network. The users have full control of their money, they can't be taxed thorugohly unlike regular money and the traditional system of finance.

[Achalugo BTC]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Yeah, the government are so much in concern about being in control of Bitcoin, which is why they are finding difficult to accept or adopt the idea of Bitcoin.
Which is why some countries are accepting it while others are taking it with a more cautious approach. But even as that, everyone will not be a part of Bitcoin despite its value because most of them will see Bitcoin as a way of scamming them, even though you show them the proof.

[MainIbem]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Govs don't do steps they are not 100% sure of.

Or if they do think they would be 100% right, while in reality, they won't.

It was always like that and it will stay that way

It's not like they're not 100% sure, the growth of Bitcoin and what it offers enough prove that it's a good alternative for fiat but then the government wants control while Bitcoin gives them less control and offers more privacy to users, which is something most governments can't tolerate, which is why some governments come up with policies that would discourage their citizens from using it but then there's still hope for a change. For instance, take a look at Iran, their currency dropped so bad and it would force their government to turn to crypto and change those policies hindering more citizens from embracing it.

[henry_of_skalitz]

It's not like they're not 100% sure, the growth of Bitcoin and what it offers enough prove that it's a good alternative for fiat but then the government wants control while Bitcoin gives them less control and offers more privacy to users, which is something most governments can't tolerate, which is why some governments come up with policies that would discourage their citizens from using it but then there's still hope for a change. For instance, take a look at Iran, their currency dropped so bad and it would force their government to turn to crypto and change those policies hindering more citizens from embracing it.

i think he meant that the govs want to be sure in what they are doing will bring them profit or control either way.. if it won't, they won't budge their fingers in any kind of activity.

[purple_sparkles]

I don’t see anything wrong with the fact that not all governments have started legalizing the use of bitcoin yet. In most cases, legalization = simply means taxation, so while governments are busy with other issues, bitcoin remains a kind of haven where they cannot easily reach with their long hands. I also assume that one of the reasons they are not rushing to do this is that some of them may hold savings obtained through corruption schemes or fraud in bitcoin or other cryptocurrencies, and developing laws and legalizing crypto could directly affect them as well. Therefore, until another solution is found, it is safer for them not to touch this topic.

[Livingleged]

It’s mostly about control and regulation. Governments move slowly and don’t like systems they can’t fully control or reverse if something goes wrong. Bitcoin challenges existing financial rules, tax systems, and capital controls, so many countries prefer to regulate it cautiously rather than fully legalize it right away. It’s not about technology anymore, it’s about politics and power.

Yeah, the government are so much in concern about being in control of Bitcoin, which is why they are finding difficult to accept or adopt the idea of Bitcoin.
Which is why some countries are accepting it while others are taking it with a more cautious approach. But even as that, everyone will not be a part of Bitcoin despite its value because most of them will see Bitcoin as a way of scamming them, even though you show them the proof.

Yea with out any doubt that is the reason most government are not really interested in adoption of bitcoin due to is complexity in term of tractability of transactions  unlike the traditional banking system.

The decentralized nature of of bitcoin is the only reason why they all don’t want to adopt it now they are enforcing all the exchanges to adopt a mandatory KYC for their users just to trace all transactions down to their owner of the those wallet.
The senses of being in charge is just.it and bitcoin wasn’t designed for anyone to be in charge you own you coin  and you can do what ever you want  to do with it at anytime you want no weekends nor holidays.