Governments commit atrocities all the time. They'll frame Bitcoiners as extremists or some shit if necessary, propagandize the public, and those human rights groups and other nations will fall in line for the most part like they always do. Look at the covid hysteria. Majority bought that shit up.

They don't need to be able to directly control your Bitcoin to bend your fingers. If they know you own Bitcoin they can threaten you with prison if you don't cooperate. In more extreme regimes, they can torture or kill you and your family. 99% of people will give in to that kind of duress.

That's why privacy and anonymity are both important.