Policing agencies can use bitcoin for tracking. The problem is they need pre-existing targets to make it very useful. If you are hacked then you can show them your address, but by the time they get to you, who knows what has happened to the bitcoin. Who knows if the private address holder is in your country. Unless it's repeatedly used by bad people, like for terrorism, they won't have any way to go out and reclaim it. It's like if someone steals a $20 bill from you. Even if you have the serial number and it gets read at a bank one day, that doesn't invalidate the other 100 transactions it has legally been used for, at all.

But no matter what details you have, literally unless it's your cousin whom has your Nano Ledger in his glove box, they can't recover anything for you. And even at that, there may not be any funds left on it. No government can force a change on any cryptocurrency ledger that is decentralized.