But then again, these actions lead to more active local peer to peer transactions, which they have zero control over.
I find it quite embarrassing to see how governments do that to themselves. I get it that they put confidence in their own sanctions against crypto, but they should have known how these sanctions have an opposite effect.
Every country where either the government or central bank announced similar sanctions, people directly found out that P2P markets are actually a better and more private form of conducting transactions.
It's less convenient than what exchanges allow you to do, but it's clear that people are well willing to take an alternative route to do what they should be allowed to do by default. What will governments do next, ban cash?
It's impossible to stop crypto and that shouldn't even be a thing. Instead, if banks actually care about capital being taken out of the country, let them set up their own exchanges so people don't need to use foreign exchanges.