Government’s can crackdown on a specific project as like they can block IP's or URL's in a project, but there also solution if you will use VPN. They can shutdown for a individual project and it’s happened in many counties but they can't totally stopped crypto. And governments will never crackdown specially decentralised project, they can only controlled centralized project if they want.
Government had a capacity to crack the transaction by their ulr and had access to many process.But mostly government track the high transaction in the crypto space,because the transaction with high volume will liable for the government with more taxes.It was also the reason for the tracking of high volume.It’s better to use the hardware wallet in the cryptocurrency field as compared to the use of exchanges to hold your money.Because we don’t know when the exchange will close their business and this leads to loss of assets in that exchange for the traders.