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They tried to do something similar with illegal torrents. 3 strikes and out.
I don't know a single place where this is actually enforced.
They push it on internet providers. I got email from provider listing specific torrents that they logged and that if there's another case found, my internet will stop. This is long time ago though and obviously you can just use VPN.
Could they not still recognize the data packets from bitcoin even if you’re using a vpn?
They could do statistical and timing analysis and guess that the data is bitcoin transactions. So government level attack is still possible and it's good to have redundancy here...
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They used to try to at least scare you but nowadays I torrent movies regularly without a VPN and nothing ever happens.
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Yeah, indeed. VPN
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Like they stop p2p file sharing right?
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It's hard to totally censor torrent traffic, it's hard to totally censor Bitcoin traffic. Will become even harder after BIP324 (P2P traffic encryption) is implemented in Bitcoin Core. But you will already encrypt traffic if running only via Tor and I2P. What governments force ISPs to do usually is just blocking access to some centralized websites, like The Pirate Bay.
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I suppose the government could tell the internet service provider to cease service. They tried to do something similar with illegal torrents. 3 strikes and out. Not sure how government could justify or swing opinion against running a node, its not infringing copyright. Hope there will always be some free country to vpn into and run a node. Ecconomic game theory.