Loading ...While the blockchain is a permanent record, all the ‘wallets’ are an encrypted address. The only way the govt can track these is at the exchanges where they go into and out of the banking system currency. So it’s all about getting the exchanges to squeal on their customers. Each transaction is usually assigned a new, encrypted address, and these wallet addresses are not typically re-used unless the user wishes. So the blockchain is difficult to track if you do not have a known end-transaction identity at the exchange. Transactions between private individuals would be near impossible to track.