Just to remind you, the VASP bill gives authorities the power to seize your seed phrase and even your cold storage devices.

That means even the crypto you store off exchanges is not safe from them.
Once a court issues a seizure order, authorities can physically come to your home or office, take your Ledger or Trezor, take your written seed phrase, and transfer everything in those wallets to a government controlled wallet.
The fun bit, there is no clause requiring them to return assets that turn out to be unrelated to the investigation.
If you're a crypto person, this is a wake-up call. Stop storing your hardware wallets and seed phrases on your work table.