While they may regulate bitcoin, they can't police every single person for every transaction,
From recent news reports there's every good indication that they actually might
be able to do just that.
That said, they don't need to come down on individuals. All they have to do is cripple the exchanges. Because there's no getting around the need for some type of exchange mechanism to make it work.
Most people also aren't so motivated about something that they're willing to become criminals to show their support of it. True, what constitutes "criminal" is in the eye of the beholder - or drafter of the law in this particular context. But even so, most people aren't willing to go through their entire lives with a 'siege mentality.' We don't wish to engage in protracted wars - either the shooting kind, or the the moral variety. The victory conditions need to be achievable within a relatively short time frame in order to get broad public buy-in.
Easiest thing to do to torpedo Bitcoin would be to just issue a law forbidding the use or exchange (along with facilitating same) of any unregistered currency or currency equivalent.
Once that's done, lean on the ISPs and search engines (who are largely cooperative anyway) to clamp down on access to the exchanges.
And finally, have government just go in scoop or nuke the data (funds) whenever they find any. Law enforcement has learned that two of the most effective tools in the battle with so-called wrongdoers are confiscation
. Cash is the lifeblood of most human activities. When "crime doesn't pay" (or can be made not to) it usually stops being committed.
People who loose the wallets that way have no recourse. You're out the money - and likely ID-ed in the process. And then what are you going to do? File a complaint in court? That's the equivalent of saying: "I want to report a theft. I had $5k worth of crack hidden in my house...and I just got robbed!"
That's the problem with operating outside the law. You're completely on your own - and competing on a field where the biggest thugs will almost always win.
bitcoin can be a good tool to help undermine the power of the all-powerful state.
Yeah, it's good
to have a dream...