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It may be illegal to operate a bitcoin miner in Europe. That's entirely possible. I don't think the courts would go so far as to outlaw crypto in Europe via that route. But who knows.
No. You can just turn off federation. You can make contracts with the instances you federate with. With crypto, you have to send the whole blockchain around, or else you don't have crypto.
No. Look up what companies and people are fined for.
No! NO!!!
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