If you sell Bitcoin for Fiat, then you have to pay taxes.
While Bitcoin is a currency, it is considered a commodity and therefore by selling it you're 'making money'.
It's illegal if you don't pay taxes.
Taxes need to be paid in any case. You in everything are right. It would be desirable to add that it is better to pay, than to hide.
Those taxes that government can justify are bound to be paid but those which are absurd and also not used for the welfare of public, why to pay those taxes. Just because of these taxes, people are highly attracted towards crypto currencies. No one is there to charge them any shitty tax in the crypto kingdom.
I also think the tax must be paid unconditionally. Taxes are the requirements coming from legit power of a country or state. So wtihout tax, we can't prove that our income is legit. Othwerwise, they could have said it's a crime sourced money
Well, there are different views on this
Indeed, if you think that the powers that be are legit, then you would obviously consider the taxes you have to pay as legitimate too ("the tax must be paid unconditionally"). It is your choice, after all. But what about those who doubt the legitimacy of the authorities? Should they also pay taxes unconditionally even if they disagree with that? If so, does it really matter if the power of the authorities is legitimate, or you just have to pay the taxes because they can force you to pay them under the threat of suffering some unpleasant consequences if you don't?