Though its easy to see why governments would want to regulate the movement of digital currencies, the reality of doing so is much harder. A lot of wallets have no identification to them and rest on a server in a third party country. In the case of offline wallets in devices such as the Ledger Nano, theyre not connected to any network.so is it possible to regulate ?
I think so, it is very difficult to regulate by any government to its inhabitants who uses digital currencies. Actually it will fully depends on peoples honesty i think. If they think that they will do their work legally they may follow government rules as a result they both may gainer legally.
To make sure everyone is honest it is unrealistic. No one can be sure that everyone is honest. There is always greed, especially on the Internet. I think governments have banned Bitcoin for a reason. They fear that when they do not manage Bitcoin closely, it will be a threat. I think when they have found a solution, there is no reason for them to ban it.