Well, I suppose that means the exchanges wouldn't permit you to add or increase to a position. If you hold the keys, of course, you could make the case that you sold earlier. But you'ld need to have reported and paid capital gains. I suppose having an unfortunate boating accident might work for that.

Anyway, they don't want you to withdraw ("self custody"). Their plan only works if you cannot withdraw.

The only way to beat these bad laws is by embracing P2P trading, KYC-Free fiat exchange methods, and a circular economy where we both earn in bitcoin and then spend in bitcoin. But most everyone is just in it for the NGU technology, I guess.