Governments can't and won't do anything to protect you. If you look at how all regulations meant to 'protect' the regular markets don't even have any effect, why would it have an effect on crypto? The only things the government cares about is you paying your due taxes, and how you have distrubuted your wealth. If they know these two options are in check, they have everything needed to blackmail and control you.

I know someone personally that due to a tax dispute with the tax department, has no longer access to financial services and everything else requiring an initial background review, all because of his 'taint'. It's a legal form of blackmailing someone to get him to do something, which in this case is to having him pay his due taxes. The government itself is the biggest ever criminal, we don't need them to protect us, we can take care of ourselves.