Quote from: WeThePe0ple on March 22, 2025, 08:18:35 PM

I have purchased my first crypto through a centralized exchange, located in one of my neighboring countries. I am located in the EU...

I want to transfer the funds to a non EU exchange, and trade there.
When I cash out my first BTC investment by 2030 or so, the bank will ask for my transaction history because trades are taxable. I intend to show them the history of the European exchange where I have not traded. Not the history of other exchanges, with no EU jurisdiction.

...

By 2030 I can convert my first bought BTC from the European exchange, so it looks like I bought and held for 6 years (not taxable).
The remaining 0.75 BTC acquired from trades and profit taking I will not convert to cash, so it looks like I never traded. I doesn't give them the incentive to go looking somewhere.

I think that most people will find this a bad idea.

Yes, it is a bad idea.

What you want is to defraud taxes and it is a bad idea to try to do it with a plan as simple as yours. To begin with, as Solosanz says, any CEX could send your information to your government, with the difference that those of the EU and countries with which they have agreements do it automatically, while the rest do not do it automatically but will send it without hesitation to a legal requirement.

In addition, the tax authorities are already learning how cryptocurrency trading works, this is not like 5 or 10 years ago. They will ask you for justifications of each trade, and today they have many tools including AI to analyze, in addition to the statement of your CEX in Europe will include the outgoing transfer and the subsequent incoming transfer, so that plan you have is bullshit basically.