Why are many governments not regulating cryptocurrency?
Governments are unaware of the existence of cryptocurrencies and when they know about it, they have become popular and are trying to learn about it. But because cryptocurrency is beyond their control, they don't fully regulate it. Maybe they can only set policies to use cryptocurrencies and adapt it to the conditions in their country. It looks like the government is still studying it and allowing its people to use it. And hopefully, the government will continue to allow us to use it and not make regulations that are too strict for its citizens.The government are not some kind of noob that doesn't know about the existence of cryptocurrency. They already knew it, remember they have different departments and intels that can gather information, but they have a more important task in their hands than giving notice to the cryptocurrency industry.
It is either they regulate or ban cryptocurrency, most prefer being in the middle because it won't cost them anything. The only time they get involved in crypto is when they see a threat or potential benefits they have on it.
The benefit that the government can take is how they can collect taxes from crypto users because we know that cryptocurrencies have developed into an industry that can provide large tax contributions. This is what the government wants.
