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why should they ban it? the chain is fully transparent, a surveillance dream for the government

Only that it isn't, it's pseudo-anonymous and only ever being able to adhere to a surveillance states "wet dream" by forcing the whole thing into a centrally enforced environment which would defeat any reason for using it in the first place.

You can break Bitcoin, but you can't enforce and mold it into a central actor's wet dream (IMHO) without making the whole thing obsolete, and thus, the whole undertaking pointless in the first place if you're not trying to break it.

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its pseudonymous only if you use non kyc coins and transact to non kyc addresses as well. Everything else is a surveillance paradise.