This is a serious discussion. I mean, after I've seen how bitcoin (and other cryptos as well) got dumped badly after an irrelevant law that makes ICOs illegal. I can only imagine now what would happen If more countries do the same thing and It could get worst by make itself bitcoin illegal. Whether we like to admit it or not, most of people would sell everything they have once its made illegal, some may continue to fight the central banking but the sad reality is that as soon as people start making profits, they will dump it and move on.
the government in my country is planning to generate income from bitcoin instead of stopping it. they are trying to find a local name for bitcoin to enter the literature. and then they plan to buy tax on bitcoin. I hope they will not succeed in this.
If they government is interested in going after your exchanges then you can be sure that they'll succeed with their goals of going after and getting taxes from cryptos, you have to realize a lot of poorer countries (not that I know which country you come from) will do a lot to get their hands on tax money so they can do whatever it is they need to spend money on. If there is no insane trading volume or whales within your borders you might be out of luck. But only time will tell and you might be able to squeak by.