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 ?
Like its original nature, decentralized digital currency movements cannot be regulated by anyone including the government. But the government can do this by forcing each exchange to require every user to provide an original ID especially when they want to register.
Even though Nano Ledger is more likely to be offline, sometimes this wallet becomes online especially when its owner wants to convert his bitcoin into fiat money, this's where the exchange account can require the owner to issue the original ID as a condition for disbursing his money. So, with that recorded identity, the government can find out the number of bitcoins the user has, and maybe they will control it only from the user's hand.