Russia and China have been doing the same thing, punishing dissidents living in other countries (and even their families, in China's case). Pretty much every country that has a plausible reason to believe they can get away with it embraces the idea that their laws apply anywhere they want them to.

I share your concern with this, but I don't think that crypto is likely to change anything in this area. Blockchains are fundamentally permanent, which makes enforcement easier, not harder. The wild west factor with crypto can't last forever; the nature of the technology works in the exact opposite direction.