We're increasingly facing a situation where there are two Bitcoin networks: verified wallets versus unverified wallets.

Almost all _market-available_ Bitcoin is on the verified side. Unverified wallets interacting with verified wallets eventually become verified wallets, as auditors can track the verified-person's online and offline activities and figure out who they are interacting with. The burden of keeping a wallet completely unverified keeps climbing and will eventually become prohibitive, leaving the wallet owner stuck in a sort of financial darknet.

Bitcoin remains uncensorable (the transaction cannot be blocked), but it is slowly losing its remaining _deniability_ and _obscurity_, as the satoshis move around the network. Rather than stopping you from keeping or using your Bitcoin, they have realized that they can simply fine you or tax you, so that you are forced into selling it.

I suppose their next step is to demand you sell those Bitcoin to them, directly, for their national stack. Or they could enact a crypto tax, that simply lobs off a benchmark-currency equivalent of 2% of every transaction and sends it to the central bank, keeping it in crypto.

Another thing they could do is force you to pay those fines and taxes in their stablecoin, artificially expanding the market for those coins.

They have many interesting options, going forward. Unfortunately.