The government can not let you have a free market and then see you rake in profits and allow you go without a tax, you will definitely pay tax to them, they see tax as their birth right. However I think the existence of government in crypto will bring some sanity to the crypto even though I know how cunny they with the at they attack the existence of crypto.
I don't think we can deny the fact that government has play a role in this bitcoin, we have some bad guys here that hide under the umbrella of bitcoin and other cryptocurrency but because the government is looking at crypto, it's preventing them from coming here which is a win win for crypto and the government because crypto is doing his thing and the government can't control it.
I believe that, if desired, the government has many ways to limit people's access to crypto: blocking websites, investigating - fining - imprisoning people who intentionally interact with crypto. However, to do so, the government will need to spend huge efforts and promulgate a legal framework to manage this market.
And no matter how hard they try, the crypto market continues to exist in their country through VPN, OTC or other clever ways. At the same time, the government will lose a huge tax source from the extremely fast growing crypto market.
The best way is that they will find a way to manage and collect taxes. They will not lose votes and help the economy develop better.
Cryptocurrencies are still not legal in many countries. Cryptocurrency is even officially illegal in my country where I live. Still I think a lot of people in our country are using crypto currency and are involved with it. Although there are some government regulations and laws related to cryptocurrencies. Still, many are using crypto-currencies in defiance of the law. Since we are a developing country, there is a possibility that cryptocurrency will become legal in the future.
I agree! I believe that after the wave of BTC adoption by large WallStreet investment funds, governments will also participate as El Salvador or Argentina. We may soon see national CEXs, clear regulations and income tax rates for crypto.