I can easily see this trending into seizing people's bitcoin for arbitrary reasons. At least those who don't self custody well enough.
If you hodl on exchange you get what you deserve.
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Some say the same thing about KYC'd coin.
Yea then go ahead and seize my KYC coins, go for it.
Which is why a tax is more likely the strategy. Just like property tax. You pay your property tax right?
