I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.
For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.
The fee for us to execute orders is the exchange's profit, then they pay taxes and that doesn't include our taxes. If true, the government's tax system will look at your account monthly to know your income and thereby collect your taxes accordingly. But now the governments don't seem to have a suitable tax policy yet because traders still trade in the black market quite a lot and can't control it. That's why many governments do not let people operate in the crypto market.