This idea I feel will not work because if this is the way they want to ensure that taxes are levied, then they are bunch of jokers because I can then register just one wallet provider then use other wallets provider and aside that, the singular action of registering your btc wallet address to identify you, has taken everything bitcoin stands for that that relates to anonymity.

A way out is to go through the middle men and device a way out of the conventional levying of tax since that is their end game. For example using Coinbase for mostly US citizens, what is needed is to ensure that when you sell on that platform Coinbase deducts their fees and the tax element before paying you the balance thereafter remit it government.