BTC / crypto in general is not the big thorn in the side of governments that some people like to think it is. Most of it despite our yelling at people not to is stored on exchanges.
Another large amount is stored without the use of hardware wallets. The amount of coins that are stored using HW wallets is not enough for them to really put that much effort into it.
It would be good to get some data on this - although I suspect it would be quite difficult to be definitive. For what it's worth ChatGPT says around 25% in exchanges, 25% in HW wallets, 25% lost or dormant?, 15% in software wallets and mobile apps, the rest in cold storage.
In any case, HW wallets are touted as the best solution. If there were a legal attack on exchanges then usesr would transition to HW wallets.
I wouldn't trust ChatGPT, especially if it doesn't mention source of the data.
I think i get your point. But IMO it's not plausible, especially about revealing government have access or backdoor to people's devices with ability to steal or take away people's asset.
Why do you think is it not plausible?
Aside from what i've said,
1. Nation who join UN isn't that united.
2. There's no strong reason to reveal their access or backdoor to people's device, when they could declare law to force people exchange their Bitcoin with fiat. We've seen it happens with several gold seizure (some call it as nationalisation) by government.