Which exchanges keep transaction data private from foreign authorities?

I just bought my first crypto through a centralized exchange in a nearby country while living in the EU. My plan is to hold onto my initial crypto as a foundation (not touching my first BTC position) and gradually add more to my stack over the years. With those additions, I’m gonna trade and take profits regularly. The exchange I'm currently using is super regulated and even has a feature to calculate how much tax users owe. I haven’t made any trades on this exchange just to avoid any tax obligations. So far, I’m staying within the law. I want to withdraw my crypto from this exchange to my hardware wallet (part of that is already done). Then, I’m looking to move my funds to an exchange that’s outside the EU. My thinking is that the MiCA law might allow tax authorities to check all European exchanges. I’m planning to trade on a non-EU exchange. When I eventually cash out my initial BTC investment by around 2030, my bank will want to see my transaction history because trading is taxable. I wanna show them the history from the European exchange where I haven't made any trades, not from any other exchanges that fall under EU jurisdiction. I signed up for Binance a year ago, but my transaction to it didn’t go through. I still have an account there. Can I move my crypto to Binance, trade, switch to stablecoins, and keep those on my hardware wallet without worrying about them sharing info with foreign governments? I feel like they might share it if asked, but I’m hoping the government won’t have access.

I would say there's no centralized exchange that won't share their data with foreign governments, if they reject the request, they will likely to get shutdown or the coins would be declared as illegal. Just like exch reject request by Bybit to freeze certain address, now many people and institutions are against exch. Like what mistakes? there's tutorial if you want to use it 1. https://docs.bisq.network/getting-started.html 2. https://planb.network/en/tutorials/exchange/peer-to-peer/robosats-b60e4f7c-533a-4295-9f6d-5368152e8c06

Yes, it is a bad idea. What you want is to defraud taxes and it is a bad idea to try to do it with a plan as simple as yours. To begin with, as Solosanz says, any CEX could send your information to your government, with the difference that those of the EU and countries with which they have agreements do it automatically, while the rest do not do it automatically but will send it without hesitation to a legal requirement. In addition, the tax authorities are already learning how cryptocurrency trading works, this is not like 5 or 10 years ago. They will ask you for justifications of each trade, and today they have many tools including AI to analyze, in addition to the statement of your CEX in Europe will include the outgoing transfer and the subsequent incoming transfer, so that plan you have is bullshit basically.

Your scheme is brilliant. Are you sure your trading will be successful and you won't lose your bitcoins there If I wanted to hide my income from the IRS, I wouldn't use centralised crypto exchanges. All your information on them is easy to verify. I've been talking to Europeans recently and they also have a developed shadow market for buying and selling cryptocurrencies both for cash and via p2p.

Taxes here are about 33% on profit (if you are lucky) and there is no compensation for losses if they didn't happen in that same year. Obviously I will take profits by the peak of the bullrun in 2025. When bitcoin was $100 I already said that governments would fight back with monster taxes and lawfare. A 33% tax on profits is like a 33% conversion fee from USD to peso, for example. With that kind of ripoff, I do not intend to ever convert any crypto assets back to cash. It's hard to justify why someone would take a 33% tax hit, rather than just holding your BTC through the entire bearmarket. I am hoping to pay for goods and services directly in stablecoins, in the near future. I know a jeweler who accepts crypto for payment, for example. In my country we don't even know yet if the tax applies only when we convert crypto to cash, or also on each crypto conversion. Our government prefers the latter of course, because it generates more taxes. But in practice it is pretty much impossible for them to trace every single conversion.

On the other hand if you can not show them your transaction history, they can not exclude that your crypto comes from illicit activities and they will not accept the conversion. I think that crypto can only succeed if we don't mix Defi with CeFi. I am hoping to pay for goods and services directly in crypto, and anonymously.

If you are given such an opportunity, it will be good for you - although most merchants that accept cryptocurrencies today use payment processors, which are in turn obliged to collect some data and share it with the authorities if requested. It's hard to hide anything from the authorities these days, it's just a question of how interested they are in doing something to bring you to justice. However, some say that if you don't live in the country for more than 6 months, you can avoid almost all taxes - of course this includes visiting other countries and doing some things - if you want to know more, there are some interesting services on this link.

The best CEXes for privacy are the ones that don't have a mandatory KYC procedure. In the past I have used Poloniex, MEXC, Latoken, DigiFinex. At the time when I used them they did not require a KYC procedure, although they allowed it optionally. There are a bunch of other CEXes that I have used in the past, which did not require KYC at the time, but they now either require KYC or are too small. However if you search online, you could probably find other no-KYC exchanges that will suit your needs. If you decide to use a no-KYC exchange (or any other exchange for that matter), check and double check everything before you send your money there. Search online for reviews of the exchange.Search forums for feedback about the exchange.Search for the current state of the exchange. See if it is working, if it has had any techincal problems recently, if it has been hacked recently, if they have the habit of blocking user funds and demanding KYC/AML information.Read the online FAQ and other documentation provided by the exchange. Check their deposit and withdrawal limits, check if users from your geographical area and/or network are allowed. Check anything else that you can think of.

Well, it depends on the type of services and products you want to buy, but that's also a tricky path. Merchants accepting crypto directly might still be required to collect your information to comply with anti-money laundering (AML) regulations. Especially for higher-value transactions.  True anonymity is very difficult to achieve in the regulated world.

Even if it is not a matter of AML regulation, if he buys physical goods at some point he will have to provide personal information, because how will he get the product he bought. Also, if he buys licenses as a digital good, they often have to read the original name for the license to be valid, which again requires confirmation of identity and removal of anonymity. Very few services and goods are completely immune to the need to know the customer's identity.

Theoretically, he can use the PO Box to deliver the products thus purchased, so that the seller does not know his personal information. This is a good way to protect privacy, although when you contract a PO Box service you have to provide all your information, so it all depends on how much the service provider protects the user's data and thus their privacy.

That is the other one. Making a plan on how to avoid taxes based on trading has a lot of tickets for you to hit the lottery of losses so you could have spared yourself the brilliant scheme. It doesn't matter, as the legislation stands in most countries, transferring bitcoin and other cryptocurrencies to a stablecoin creates a taxable event. Really? I would have never thought about it.

I wouldn't buy goods with cryptocurrency if you need to maintain anonymity. If you choose to invest through CeFi, then follow the legal route. All transactions are tracked and any discrepancies will be testified against you. I use some CeFi's that do not require a user identification procedure.