I think the issue here is the adequacy of taxes and tax policy. If a citizen receives income, then the tax system should be very simple for citizens. In Russia, for example, you need to download a smartphone application and pay 4% tax. For convenience, it is better to open a separate account in another banking application so as not to mix your salary and benefits with other income. If such a system worked in the USA and Europe, they would increase tax collection.
That's for sure. There are two things that increase tax revenue:
1. Ease of filing.
2. Low rates.
As in many countries neither of these two things is given in the field of cryptocurrencies many people do not declare them, as there is a certain ease of holding and trading cryptocurrencies without your state knowing about it. Now as governments see that they are missing quite a few taxes out there, in many cases what they have come up with is the opposite: the same difficulty to file taxes, KYC obligations everywhere, and high fees.
Do you know why people don’t declare their crypto savings in Russia?
If a citizen has a couple of thousand dollars, then this makes no sense, because for such amounts there are no fines and no obligation to declare. But if you declare, then you will have more rights in court and you will be able to file statements with the police, because your cryptocurrency is legally declared.
But let's look at the other side, and this is security.
If you have millions of dollars in your bank account, then it is difficult to steal them, but if bandits find out that an ordinary citizen has millions of dollars worth of cryptocurrency, they will rob him.
