Your argument doesn't confirm or prove that all exchanges are owned by government. Or NSA created this bitcoin. Nothing is proved at all. Coinbase is just doing what they are asked to do by IRS. They are just complying with the government's requirement of data. As a good citizen, I feel obliged to pay my taxes and if I don't, that's a wrongdoing on my account.

Now Coinbase only have three options to follow. Either they comply with IRS requirement or they just pull the plug or they will move to a bitcoin friendly country like Japan or Israel. If they don't comply with the IRS requirement, they simply will be barred from doing business in USA, all their properties will be seized and court proceedings will be ordered.

I remember, the same happening with Liberty Reserve. It was a paypal type system much before crypto currency rose in to prominence. This payment processor was very much active in the worldwide ponzi market. IRS simply came in and froze their entire business because they were unable to comply with their requirement. Now if you visit their website, you will see the below,



Definitely it is against the main vision of the crypto currencies. But in real world, de-centralization is hard to happen. We should look at it as a new way to earn money and as an investment asset. Slowly all countries will move to legalizing bitcoin, but that means, their citizens will be forced to comply with the KYC requirement and pay taxes on it. That's sad but that's what is imminent.