How nax authorities detect undeclared cryptocurrency income
A self-custody wallet contains 200,000 USDT. The person lives in the European Union, trades through DeFi, occasionally uses a centralized exchange and pays everyday expenses with a crypto card. Their tax declaration shows only regular salary income. They are confident that the wallet, the keys to which are controlled only by them, is not connected to their name, that a decentralized exchange does not request a passport, and that the card simply charges cryptocurrency. Therefore, they believe they cannot be identified.
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