Here in my country which is now an upcoming tiger economy (though we are still classified as a third-world country), we are free to participate in Bitcoin both buying and selling as the government is treating Bitcoin just like any other foreiign money.
However, I am sure that only a very, very small fraction of us are declaring our Bitcoin income. It seems to me that the government is not that interested to get strict with individuals as long as they can tax the Bitcoin exchange provider for the service rendered.
I am then wondering the situation with other countries. Can your government really be able to track if you never declared gains made from Bitcoin transactions?
The government cant track your bitcoin ofcourse because you can change your bitcoin or eth address whenever you want, and that is one big advantage of bitcoin, if your from the country where you need to declare you assets , Im preety sure you know that it is impossible that government officials and workers are using bitcoin as there hiding banks for their future. Not just Government officials but every people can use bitcoin to store and secure there futures