How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?
I guess there's a possibility the government can trace you own a btc. Some btc transactions needs your personal details. That way they can trace you own a bitcoin. Not all bitcoin transaction is anonimous, some transactions are traceable by the government. Like in your investment transactions, it does need KYC and it includes your personal info. Government has their own say to trace a person who owns a bitcoin if needed.