You don't even need to off-ramp it, which was the whole point of crypto.

I could cut your lawn, sell you an Xbox, or buy an old tractor completely with BTC. The government can cry about it all it wants, it can pass a hundred laws, or issue a thousand court orders. But at the end of the day, it has absolutely zero control if two individuals want to voluntarily exchange crypto with each other. We've already seen this play out with the illegal drugs trade and P2P file sharing. Spoiler alert: The government lost.

In virtually every country, there exists the definition of legal tender, which basically is the currency that taxes are paid and the currency that courts recognize as viable payment for debts.

So really, in FreedomLand, you can work and get paid in BTC, but if FreedomLand only recognizes FreedomDollar as legal tender, then when you need to pay income tax, the government will charge you in FreedomDollar, and you need to exchange your BTC to FreedomDollar.

If you cannot or don't want to pay tax, then of course police will prosecute you, and courts will also require settlements in FreedomDollar. Nevermind you have millions of BTC or XBoxes.

Now of course, this "problem" would disappear if FreedomLand recognizes BTC as legal tender, but now FreedomLand government loses all monetary control, and then economic activity descends into chaos.

What you've really seen play out is that the government hasn't bothered to regulate cryptocurrencies yet. After they regulate cryptocurrencies, this becomes much easier to prevent.