Technically speaking, most people who are into cryptocurrency are paying their tax obligations. In converting and exchanging their coins in fiat, they are paying some fees to the centralized exchangers that are regulated by the government. Hence, they are still paying tax aside from the annual tax of course which is subjected based on the generated income you have annually in doing cryptocurrency.
If they are not they are stupid the only reason businesses like to accept cash is because there is no trace of it and they can hide it and not pay tax on it but with Bitcoin if you are hiding from paying tax then you are stupid because it is publicly recorded. The tax authority would only need to identify what addresses you have used and since most people have to reveal their addresses to make trades and then they use them on exchanges all that data is collected. Exchanges probably release this information to the authorities and if they have not paid tax they will quickly identify it. Exchange fees are not tax though you are confused you need to pay the fees for the exchanges because that is how the exchanges make money and you need to then declare your earnings to the tax authority after that even if you have paid fees. You can deduct the fees from the earnings I think but do not confuse it exchange fees are not tax. I would describe the exchanges tax as a service fee instead of a tax because they are charging you for a service like moving around the coins when you purchase them and escrowing them for you.
It will be interesting to know how many of these names are associated with the cryptocurrency sector. The Biden administration recently came up with an additional funding of around $80 billion for the IRS. The justification was that it will result in an additional tax receipt of $1 trillion. Forget about $1 trillion. I will be surprised if the IRS could get $100 billion in return for all these investment. The root cause for tax evasion is sky high taxes. When you increase the marginal income tax to 60% and make capital gains tax at the same level, at least a significant portion of the taxpayers will try their best to avoid taxes. It is no rocket science.
If there are any people who are involved with cryptocurrency they did not avoid tax with cryptocurrency that would be a stupid move. The taxes are large and the taxes are larger for the rich but it is based on your income and is only a percentage if you are getting taxed over 50% then you are earning a lot of money. Remember that the politicians get paid by tax paying money too the people of the countries are paying tax which funds the salaries of these politicians and then the politicians which are funded by tax paying money are avoiding tax which goes to maintenance work of the country and their salaries and I think it is awful that people that are leading our countries because there are a couple of kings from different countries on this leak are taking the money when it benefits them and then are hiding it when they are asked to do what everyone else does. People who are earning very little are expected to pay taxes and sometimes these people are struggling to pay for food but these rich people are hiding the money and can live comfortably for centuries if they could. There will be no jail sentences for these rich people and politicians but if it was me or you we would be put in jail for tax evasion.