When you use centralized exchanges and comply with their KYC crap and give them all your information and "confess" to what you have, you are using Bitcoin wrong. Bitcoin was created to give financial sovereignty, something you won't be able to have when registering with a CEX and complying with their KYC. Without it, the government won't be able to tax you!
Yea, well, if i would have chosen to hide my crypto from the government and just not declared taxes, then i think i would live in constant fear to being found out and put into prison for years, like a drug dealer that has a lot of money but has to find all kinds of super-complicated constructs to be able to hide that and still spend some.
So then you have eg 10 million usd in crypto and you eg can't buy a house cause then government would know you have money that you didn't declare. I guess best way then would be to leave the country and join another one with no taxes on crypto. I also decided against that, i wanna be close to my family, friends, homecity.
Not buying Bitcoin on CEX? That's super cypherpunk, i guess people did only do that peer to peer buying with paypal in 2011 and 2012.