A lot of countries cracked down on merchants accepting bitcoin, and in a lot of places it's illegal to offer BTC->cash conversions without KYC.
I suspect authoritarian regimes would be the first to close this loophole. This is not theoretical - Russia did this in 2022 to stop people from offloading their rubles and/or fleeing the country with their money.
Crypto is qualified as property and regulated in a very similar way. There is a market for borrowing using tokens regulated by digital assets act (цифровые финансовые активы).
I suspect authoritarian regimes would be the first to close this loophole. This is not theoretical - Russia did this in 2022 to stop people from offloading their rubles and/or fleeing the country with their money.