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?
We already know that bitcoin transaction is anonimous, Also you can have many wallets of it. So, it so hard to find that you have bitcoin. But, when there is a market that you already did the KYC things. It means that the market have your information also how many asset that you have in your wallet. So, never put your asset in the market.