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That's just not true. Every Bitcoin transaction is conserved in the blockchain, so a government can easily reconstruct the money flow.

And the transactions made on the exchange ? and decentralized exchange ? Can they all be tracked and reconstructed ?

BTC is not anonymous. In theory, it is possible to track all the transactions. That the main reason why others crypto like Monero or Dash had emerged

Pretty sure exchanges need to follow KYC laws.