You don’t necessarily ban it as such, but with how accurate the European tax-agencies have been with collecting on the crypto-currency people trade, it doesn’t

You don’t necessarily ban it as such, but with how accurate the European tax-agencies have been with collecting on the crypto-currency people trade, it doesn’t seem hard for them to track the trade. Then it’s simply a question of confiscating whatever you turn your Bitcoin into. It’s usually how they deal with criminal gangs as well. “Can’t prove how you managed to buy a million dollar mansion while being unemployed?”, it is now the governments property… The primary reason it doesn’t really work on crime in general is because most of the money doesn’t stay where the drugs are sold, but most Bitcoin speculators/investors aren’t setup to live outside “the law”. In Holland it could be as easy as simply having the banks confiscate any money that arrive from exchanges and blocking any transfers in the other direction. It wouldn’t exactly end Bitcoin as you point out, but it would make them rather worthless to most people.