2nd question btw. Any idea how many people are buying/selling bitcoin and have not paid taxes? I've heard it's a lot but idk what percentage of the population. Like a lot of people I know who are into bitcoin didn't even know you had to pay taxes on trades. I, like them, thought it was only when you cashed out. I heard the IRS sent a crap ton of people letter reminding them of taxes.
Also, do exchanges like coinbase automatically hand over all your info to the IRS or do they only do it upon request? Like the IRS has to call them to ask for yours in particular?
What about exchanges like foreign exchanges like kraken or kucoin? I hear they are less likely to cooperate with the US gov? Idk. anyone have much info on that?
If they can't prove that you bought/sold crypto, how are they going to tax you or punish you? They can't do neither of those. (At least I hope)
Sooner or later the Governments are going to figure that out and probably force the exchanges to ban anonymous coins.
They can already see everyone who bought and sold anonymous coins on the exchanges like coinbase. The problem rises when people do P2P trades and nobody can see the XMR trades because there isn't a public blockchain. While they can track down the traces on the bitcoin blockchain and find your transactions, they can't do this on XMR. That's why XMR is way more dangerous than BTC. (to the govs ofc)
The main problem arises when working with fiat. Finding information in the blockchain is very expensive and requires the services of good specialists, but it is very easy to track the movement of money in your bank accounts. You can use cash, but many countries do not allow cash when buying property. You can hide your cryptocurrencies, but you can't hide your real expenses for long.