Well, the countries are aware of the importance of the crytos, but they are afraid of the impact that it'll have on the banking sector of that country. I believe this banking system will soon become obsolete and new more vibrant ways of financial market will take over centered by crypto. This banking system wasn't a good one in the first place, there were actually there to milk the people of their hard earn money and now when the technology has granted somewhat freedom from this pathetic banking system, the govts are afraid to let it take over.
The banks have it on their minds that they can earn only through interest on money and this is a system which is destroying them and their businesses that is why it is forbidden because it sucks financial system and economy. If they find other ways for making money and adopt them in their banking system then they will flourish. For example they have to provide services for the crypto community like the exchanges are doing one example for them is binance which is earning more money than the bigger banks of Europe (i saw that in an article, which I cannot find it)
I think Banking system and crypto can find a way to work together and compliment each other. Example, Banks can introduce crypto based accounts and crypto based products like Long term fixed deposit of bitcoin where profit is paid in fiat currencies , ETF, loans and many more. I think once crypto is legalized , we will see lot of new crypto based products in the market. As well as people will prefer to open accounts in Banks because their funds will be more secure compared to Exchanges. Banks will definitely provide guarantee of security of funds.
https://www.bcg.com/publications/2020/how-banks-can-succeed-with-cryptocurrency
