Question about bitcoin - being in a ledger, doesn't it make possible for everyone to read every single transaction?

Bitcoin is said to be about privacy and control.

Since the ledger is, to my understanding, so open and complete it is possible to track down all operations, doesn't it mean that all it takes is for a major government to say:

"it must all be deposited here, all those who don't are illegal, and any wallet who makes even one trade with a non-approved wallet makes its owner criminally liable?"

Also - the moment I know someone's wallet, I can backtrack all that wallet did in the past and keep tabs in the future. Sounds a bit dangerous.

This is a question, perhaps I'm missing a major point.

2nd question - is there some crypto that by design is resistant to this, or does the blockchain imply precisely this lack of privacy?