For exchanges, ICOs that collect KYC information, when are they required to send information to the government.
If I remember correctly, in the US if you make a money transaction, such as through Western Union, or bank, $3,000+, within the same day, or smaller amounts during consecutive days, the institution must collect your ID information and Social Security and report it to the government. I forget which entity of the government.
Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government? Or if you move $3,000 out of an exchange, that gets reported?
Unfortunately, as the blockchain projects need to become an entity it is inevitable to be hidden as an investor as you have to report your identity to them. I think they don't give them your identity to the government. Only the companies that you exchange crypto to fiat and fiat to crypto do this. If you make a big transaction in this process then maybe your government will be aware of that.