[rmc]

In some countries (eg UK) prostitution isn't illegal. It's just illegal to ask for money for sex, its illegal to imply you'll pay someone for sex, etc. that sounds like what the government could do to bitcoins. As a result prostitution is de facto illegal.

[weavejester]

Yes, the government could do that, but it's not guaranteed they will. My point is merely that regulation does not necessarily mean making something completely illegal.