I'm not sure if this is also happening in your country. Is anyone honest enough to declare his/her crypto assets? For me, taxes should be considered ONLY if it is officially accepted and become legal tender.
This statement makes complete sense! If crypto is not yet a legal tender and you can't use to purchase goods or services, then it shouldn't be taxed. But unfortunately, that's how government works! In my country as well, crypto is not a legal tender. However, government has imposed 30% tax on crypto assets and it is ongoing since last 2 years now.
It was just 15% in our country, but I feel too much already. They only look for their benefit, not how these traders and investors risk their money. They impose taxes but never see how we could benefit from it.
A lot of crypto enthusiasts do not even want their identity revealed. They often hide that they own crypto not only because they do not want to pay taxes but because it is for their own safety as well. I will not be surprised if many do not file crypto in their taxes.
Certainly, we are going to that situation, and most of us fail to put everything we have and cheat them. We might violate the law, but it is because of their wrongdoing and approaches.