Not sure about that, honestly, why would they reveal their crypto holdings just to get hit with taxes? If they’re holding it long-term in a wallet that’s not tied to their personal info, they can keep it secure without worries. But for crypto sitting on exchanges, that’s a different story - it’s linked to their identity because of the exchange’s KYC rules.

Look at China: even with Bitcoin trading and mining banned, people there still hold Bitcoin. So, it wouldn’t be any different here. Bitcoin holders are clever; they’ll find ways to protect their privacy and make sure they’re not flagged for breaking any laws.