Privacy and Tax

Key Points

Coinbase now sends all transaction and balance data to government.

Governments now know exactly your money movements and what you

Coming after cold wallets as that’s where the whale money operates

Privacy coins will be illegal in EU July 2027

Need motivation to leave Coinbase?

Every transaction

Thanks to cryptocurrencies and the innovations creating decentralised finance - we don’t have any need for governments or banks any more.

We can do just fine without them. If I’ve got $1billion in my cold wallet I can send you $100m if I like, with the same transaction fee as sending $100.

Obviously they really don’t like the idea of this.

Officially they just want to protect us

They are desperately trying to “re-centralise” crypto.

Officially they just want to protect us and need to introduce as much regulation and laws as they can.

They want to just make sure the wider financial system doesn’t implode… Despite the entire cryptocurrency market being valued at approximately $3 trillion and a very minor subset of the global financial system and roughly 0.25% to 0.4% of total global financial assets.

One of their main concerns seemingly is that terrorists might figure out crypto and suddenly become infinitely more powerful. However, why would crypto take over Hawala and the use of cash, or oil, drugs, gold that is more useful in a conflict zone than numbers.

How much sent to fund proxy wars by governments?

Lastly they want to make sure criminals don’t destablize society through super-charged crypto money laundering. Other methods 99% more through banks then crypto.

So obviously it’s about keeping control of the populace and getting tax paid.

Regulation for stability, and to reduce money laundering and terrorism. Is for control and tax.

Our government’s vision is to be to attach a real identity to every crypto transaction or wallet.

And for 99% of crypto holders they’ve done it.

Following the widespread adoption of cryptocurrency and blockchain technologies, there has been concern that they could facilitate illicit activity, including tax evasion.

Governments now know more about your crypto than your other money

EU Crypto Big-Brother

Crypto-Asset Service Providers (CASPs) like Coinbase are now forced to automatically report all user transaction data to tax authorities.

Users must provide their TIN to platforms by 31 December 2026. Failure to do so can lead to platforms blocking account access or freezing transactions

Starting 1 January 2026, crypto platforms and service providers must collect detailed user data and report it to national tax authorities, who will then automatically exchange this information across all 27 EU member states.

EU Law (DAC8) forces crypto-asset service providers (CASPs) to automatically report

Crypto-Asset Service Providers (CASPs): Includes centralized exchanges (e.g., Coinbase, Binance), brokers, and custodial wallet providers.

So Coinbase is forced to give everything up:

User Data: Full name, address, tax identification number (TIN), and date of birth.

They must report the type of crypto-asset, transaction type (buy, sell, transfer), and transaction value.

If a user fails to provide required tax information after two reminders, the CASP is legally required to block them from making transactions, with a 60-day deadline from the initial request.

Global Crypto Reg

OECD (Organisation for Economic Co-operation and Development)

CARF (Crypto-Asset Reporting Framework)

All major powers from Jan

Most major countries have introduced laws forcing all Crypto-Asset Service Providers (CASPs) like Coinbase

USA, UK, EU

We don’t have to be a criminal to want our crypto holdings to be completely anonymous.

Coinbase and similar requires KYC crypto platforms to report user data directly to tax authorities

KYC benefits to us:

Can trust in Coinbase etc. not to rob you

Easy and fast to buy and sell crpto

Beneficial Laws:

Germany: gains are tax-free if you hold the asset for more than one year.

Dubai: Offers 0% personal income and capital gains tax on crypto for residents.

What you need to know

The OECD (Organisation for Economic Co-operation and Development)

IMF, World Bank, UN, EU, G20, WEF,

Collaborating with the G20

38)

38 members made up of the major wealthy democracies: US, UK, EU, Australia, New Zealand.

Sets standards adopted by 100+ countries

BCG, WEF, Chainalysis partnerships; corporate influence on standards

North America: US, Canada, Mexico

Europe: 25 EU members + UK, Norway, Switzerland, Iceland, Turkey

Asia-Pacific: Japan, South Korea, Australia, New Zealand

Latin America: Chile, Colombia, Costa Rica

The Financial Panopticon

Michel Foucault's panopticon — a prison design where inmates can be watched at any time but never know when they're being observe

Know Your Customer (down the the trans

KYC requirements + reporting laws mean

KYC: Small Ask, Total Access

KYC: The ID That Unlocked You

KYC: Reasonable ID Verification Became the End of Financial PrivacyKYC:

KYC: ID Verification that exposed everything

Remember that first ID upload and selfie right? It made sense with all the scams and hackers around.

In hindsight - I’d have rather took my chances.

Bitcoin was created in 2009 as a response to the financial crisis - a peer-to-peer electronic cash system without banks.

Coinbase launched in 2012 to make Bitcoin accessible. Then, one step at a time, Coinbase became the very thing Bitcoin was designed to replace - a gatekeeping financial institution that knows everything about you and reports it to the government.

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