Governments can only limit exchanges, maybe fine or prosecute miners but they can't control the exchange market in other countries, they can't ban transactions between two peers, they can't takeover your funds and more importantly they can't issue more currency to paid their loans.

Sounds like a libertarian paradise but these also comes with double edge since it leaves his citizens without consumer protections, makes value speculative to trading volume therefore subject to foreign control and limits the government enforcing power.

The market is free, exchanges aren't.