If I were to attack bitcoin effectively, I would target on- and off-ramps in the first place. Having full control over the on-ramps is getting increasingly complicated (people develop decentralized exchanges like robosats and bisq), so controlling the off-ramps might be the next goal.
Discussion
Try to cell 100 bitcoin in Europe nowadays. I bet it's gonna be very complicated. So in a next step I would make selling 10 btc complicated, and in a next one 1 btc.
Probably so, I've been thinking about it too
Australian banks have limited transfers to $10k per month to exchanges - on-ramps are disappearing fast.
Off-ramps will be more difficult because you can spend on gift cards etc. ie. getting hold of Bitcoin you’re generally exchanging cash, getting rid you can exchange tons of things.
Bitcoin’s portability is going to come to the fore soon enough. Likely when other capital controls come in.
It is notable that psyops don't have to make sense. They don't even have to work. Making the plebs think or lean a certain direction is enough, especially if it thwarts mass adoption.
Also of mention: the pratorean guard can do whatever they want, do not think otherwise. They can also provide exemption from justice to their designates, to whomever they want, even for completely illegal purposes.
I would advise to keep everything self cusody, and pay the tax as/if it is required in your location. To the one calling for the tax, the tax, to the one calling for the tribute, the tribute, the one calling for fear, such fear. RO 13:7