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?
all cryptocurrency transactions can be checked by everyone including the government
in a ledger called blockchain, but because the blockchain system hides the sender and seller's personal data
so maybe the Government can only see the amount and time of the transaction only.
It is difficult for the government to find personal data in the blockchain system.