>Bitcoin also doesn't need the approval of any person, police force, legislative body, military, or government.

If you start from scratch with a non-exchange wallet and get paid in BTC for something to it, sure. But if you want to get in with any fiat, you're going through an exchange, which means KYC, which means you definitely need the approval of the exchange (and by proxy your local government/tax authority).

It was a simple solve by governments to get crypto controlled centrally by proxy for most users this way.