I wouldn’t worry too much about it. Just assume all your transactions are taxable, as usual. Unless there is an exemption.
What I am worried about is that the government can take a two-step approach to ban ANY inconvenient mechanism from being used by the public:
1) Force the developers to declare their mechanism as an X (money transmitter, or exchange, or communication platform)
2) Then regulate X by forcing all developers of X to require their users to provide Y.
So this way they can for example ban encryption. In Monaco and Dubai, it is technically illegal to use end to end encrypted messengers except the ones with backdoors (eg BOTIM).
If you think you can stay in some offshore jurisdiction, just remember that FATCA is global and pressures all countries to comply eventually.
The only reason the public has any freedoms at all is because the makers of browsers and operating systems have not been pressured yet into banning every website that doesn’t register with the government. However, with HTTP3 we are going to see that, encryption certificates will be treated just as “official BIOS bootloaders” of OSes 10 years ago. See “the war on general purpose computing” by Cory Doctorow. It’s coming.
Because they first have to form a whitelist (licensing scheme) before they can put pressure. If no drone manufacturers need to register, for instance, then they can produce drones that can fly anywhere. But once they get all of them to register, then whatever unregistered drone manufacturers still make drones can be excluded from the wider ecosystem.
Thus, for example, they can't just tell browser makers to "ban websites we don't like". But if they make everyone register an https certificate, and every browser maker to register their browser, and every operating system maker to register their operating system, and every computer manufacturer to register their computer, then they can make it hard for a computer manufacturer to obtain parts for their computer, or a license to install the operating system, or vice versa, by leaning on the other registered entities.
What I am worried about is that the government can take a two-step approach to ban ANY inconvenient mechanism from being used by the public:
1) Force the developers to declare their mechanism as an X (money transmitter, or exchange, or communication platform)
2) Then regulate X by forcing all developers of X to require their users to provide Y.
So this way they can for example ban encryption. In Monaco and Dubai, it is technically illegal to use end to end encrypted messengers except the ones with backdoors (eg BOTIM).
If you think you can stay in some offshore jurisdiction, just remember that FATCA is global and pressures all countries to comply eventually.
The only reason the public has any freedoms at all is because the makers of browsers and operating systems have not been pressured yet into banning every website that doesn’t register with the government. However, with HTTP3 we are going to see that, encryption certificates will be treated just as “official BIOS bootloaders” of OSes 10 years ago. See “the war on general purpose computing” by Cory Doctorow. It’s coming.
Update: it’s already here in China: https://www.zdnet.com/article/china-is-now-blocking-all-encr...