How govts would do that? Will police visit every home across the world searching for mining software and check every USB stick and pice of paper after cold wallets
? How they are planning to deal with decentralized exchanges?
Well the first thing they would do would be to just freeze all bank accounts (with all their money in them) that interacted with any cryptocurrency by sending or receiving funds. That would isolate cryptocurrencies.
Remember how while Thomas Gresham's Royal Exchange founded in England in 1571 brought immense financial wealth into a small country previously dependent on wool trading in many other countries (maybe all) financial regulation prevented the growth of industry and trade - for example many branded charging of any interest as usury.
So they may not think out the benefits before locking themselves out from them.