I would be very ironic and funny if in the end these kinds of laws being applied in the European Union and in the United States, in the end convinced people to move most of their money to non-custodial wallets, instead using their exchanges to manage their money and carry out transactions. If so, what would the European Union and the USA do?
You would be surprised knowing how easy it is for them to find out who is using Bitcoin and who is not. Considering the majority of the world does not care about Privacy and even those who do care about it still use the Internet improperly, it is pretty easy to check who is 'the bad guy'.
More over. How many of us all would continue using Bitcoin the 'illegal' way if that is the case? I doubt many would risk it. Most of them would obey unfortunately.