Operation Hidden Treasure

[hulla]

Cryptocurrency cannot be totally regulated, the government can only regulate exchange that operated on their soil which the reason why KYC/AML was introduced then but they learned that some crypto users circumvent tax through the use of peer2peer exchange

It doesn't matter where the exchange is situated, what platform you're using for p2p or where the guy with which you deal is, the government isn't interested in that, they know you reside in this country you have to pay your tax for all your financial gains.
And besides, as long as those p2p transactions are not cahs in face-to-face exchanges and involve banks or any other money transmitters are just as easy to track down.

I don't support the habit of tax evasion but the government will only track down p2p transfer which is from overseas and they won't be able to know if the teansaction was crypto since the payment received was in fiat.

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[stompix]

I don't support the habit of tax evasion but the government will only track down p2p transfer which is from overseas and they won't be able to know if the teansaction was crypto since the payment received was in fiat.

Why do you assume they can track it only from overseas?
They can track every payment as long as the final step happens in their country, if I send my friend a 1000E payment now via a bank transfer they will know. If I send him 1000E via PayPal he must do something to get that money from Paypal and it will end like all 3rd party payment processors with a link to your bank account and get tracked.
P2P anonymity is highly overexaggerated around here and I don't understand why, transactions between people who don't own a business and are not related by blood or don't live in the same are standing out like a skyscraper in the desert, how many normal users do you think are making more than 20 transactions a month with complete strangers? None?  Once they track a node (a trader on lb or bisq or whatever) they can link everyone who has had deals with him and it already happened tens of times.

Second, with taxes it's not the government who has to prove that money is from crypto, it's you in the first place that needs to tell them what are that money is for, and falsifying a document is a felony, that's what is stopping a lot of people.

[hulla]

I don't support the habit of tax evasion but the government will only track down p2p transfer which is from overseas and they won't be able to know if the teansaction was crypto since the payment received was in fiat.

Why do you assume they can track it only from overseas?
They can track every payment as long as the final step happens in their country, if I send my friend a 1000E payment now via a bank transfer they will know. If I send him 1000E via PayPal he must do something to get that money from Paypal and it will end like all 3rd party payment processors with a link to your bank account and get tracked.
P2P anonymity is highly overexaggerated around here and I don't understand why, transactions between people who don't own a business and are not related by blood or don't live in the same are standing out like a skyscraper in the desert, how many normal users do you think are making more than 20 transactions a month with complete strangers? None?  Once they track a node (a trader on lb or bisq or whatever) they can link everyone who has had deals with him and it already happened tens of times.

Second, with taxes it's not the government who has to prove that money is from crypto, it's you in the first place that needs to tell them what are that money is for, and falsifying a document is a felony, that's what is stopping a lot of people.

You make a good point and I believe this is the strategy the operation hidden treasure will you to fish out tax evade but I am not saying they can't track down the sender's information and what I am saying is that they can't know the purpose of the money if the receiver doesn't tell them what the money is all about.