Taxing gains from cryptocurrencies is extreme to me too and I agree that it crosses the line. In that case, we can say that they're overstepping. The fact that they're in charge of the citizens of their country doesn't mean the citizens should have no power over themselves. They should have a right to privacy.
I agree to that, taxes should be with understanding between the two parties but in most cases I think it's not cause what the government do is make decisions that they can't carry on anytime soon leaving the masses in dilusion and be left with paying up taxes on specific basis, meanwhile the reasons why the taxes are allocated are not being exercised which is bad and with this I think it's theft on the higher notes cause what's to be done with the tax allocations are not done and in most cases taxes are not being notified to the users .