Well all the transactions are public. So I assume you freeze the assets of everyone involved in the exchanges. Then if they operate in a country beyond your reach, you embargo that country or apply other geopolitical pressure - you don't finance local development, or military assistance, or vote against whatever they want in NATO, whatever. Most countries have agreements in place for financial regulation and will gladly hand someone over who breaks a US banking law.
Then whenever you trace it to one of your citizens, you throw them in jail. This would destroy the exchanges, and prevent most people from participating in it (even as a curio).
It would be ultra easy to destroy crypto. If the US, Europe or China bans it for real, it will be worthless overnight. Nobody cares more about crypto than pissing off any of them.
I think all major countries are gearing up for this and it will happen eventually.
Then whenever you trace it to one of your citizens, you throw them in jail. This would destroy the exchanges, and prevent most people from participating in it (even as a curio).
It would be ultra easy to destroy crypto. If the US, Europe or China bans it for real, it will be worthless overnight. Nobody cares more about crypto than pissing off any of them.
I think all major countries are gearing up for this and it will happen eventually.