If they made crypto illegal (except their own government issue, of course), and gave notice to the law coming into force - you would see a stampede to the door in all the crypto's

This being the case, (knowing they could pull the plug on it at any time) it offers no threat to - anything, really.

While lots of people are very 'gung -h'o and screw the government,( in theory )
I would bet that they would sell their BTC quicker than a european going to the toilet after eating in india for the first time...if it meant their money was being threatened.

Principles?- what principles? lol