First of all, it is easy to see your IP address and the government can actually see what you are browsing, with their IT experts or with their hackers that can access your computer easily. Also, what they can do is ban all crypto related and if you try to go to a website it will show a warning or an error that it impossible to access. They can easily track you especially if you make transactions online and they probably can arrest you depending on the government rule in Venezuela.

If they will have access on your computer and get the information that they need like the wallet of your bitcoin and also the bitcoin wallet address then that is how they are going to trace that you have bitcoin but if they are just tracing where you at because of your bitcoin address then they will fail because bitcoin is anonymous and untraceable.

In my country, users are detected. Before making a wallet user has to fill up all information. This happens because the government has its plan to recognize bitcoin as a form of payment. Large number of people in my country actually has tge access in the cryptosystem. Gettinh information also makes the system regulated.

every government must have sophisticated technology and have experts in the field of technology, especially on the Internet network. bitcoin is not strictly prohibited by all governments, since most governments have banned the use of bitcoin if they do for real transaction activities without using existing local money. but there is also the opposite, the government allows the use of bitcoin if they are able to convert first to local currency that exists, therefore the existing local exchange site has its own security and able to convert bitcoin into local currency, but without us know the local exchange site able to work with the government because every member who uses the local site can send money to his bank account through approval must verify the identity of its users.

That's how I feel personally, as long you don't hold a fortune such prohibitions are not that serious, countries like Venezuela lack infrastructure to keep track of the population affairs, of course, it's still dangerous but I can't see a BTC holder as a criminal just because the government made it forbidden.

Actually, I think the problem is not so serious, which means that the government may take measures to manage your use of Bitcoin in violation of the law. Assuming you use Bitcoin to make direct cash transactions, the government will handle you. And if you accumulate Bitcoin and treat it as personal property, there is no big deal. In my country is so.

Since exchange are requiring KYC now I think that it is one of the ways that the government will find out if who are the person who has bitcoin in their country, but so far now our government still not strict with regards to cryptocurrency.

Yes now has a requirement to identify the holder. Maybe this way, they can track who has Bitcoin. but without this we remain anonymous to the government but they know how many transactions are associated with Bitcoin. Until now because you know that the owner of Bitcon can not be traced, because there are many addresses and owners in the world, and I think it's too hard to identify who the owner is, I think your country started blocking Bitcoin webiste, all associated with Bitcoin like a local exchanger.

No they can't trace an individual having a bitcoin or holding of any crypto. But the government can impose some fee on the transaction like additional fee when you go to an exchange. It is really possible like here in the Philippines that the exchange like coins.ph have been regulated by the government agency and the Bangko Sentral ng Pilipinas that gives coins.ph a license to operate. In this way coins.ph could be directed to get an additional fee for the government fundings in every exchange or transactions to be done.