In the fiat system, the real question is, "Can a penalty be exacted? And if so, by who?" Because there is no real ownership in a fiat system, only coercion.

Therefore, for there to be real ownership, there must be no intensity of coercive force that can remove ownership. Only in that system does real ownership exist.

That's why Bitcoin can work, because it's possible to steward ownership in a way that no force outside of the owner can change.