Can the government come for your bitcoin?

I recently got a notification from the app Coinbase on my phone saying that if I don’t give them my personal information for example, my ID or drivers license by a certain date by May 12 I will lose all privileges on the app, and I will only be able to withdraw from my bitcoin wallet. So if I have any debt, and I put my personal information on my account, does that mean the government can come and take my bitcoin as compensation for debt?

So after reading the comments if I had debt and wanted to withdraw my bitcoin into cash not at the moment but soon like within this year what should I do if I have debt? Should I not upload my info and just cash out before may 12?