How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?
I particularly do not think it is possible for the government to know you are a bitcoiner except you are careless with your identity details depending on the exchange platform you use.
This is so because one of the very major features of bitcoin is decentralization which means transactions are made without middle men to track it.
Another reason the government can't track you is because all of the transactions in bitcoin are anonymous and so cannot be tracked.