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What you said is nonsense, monero is subject to the same tax rules as bitcoin. Whether it is not allowed on exchanges is another matter.

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How do you tax a completely encrypted transaction between 2 peers? In the same way you tax a cash transaction between 2 peers: you don't.

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Monero is still sold on many exchanges operating in Europe. If you sell Monero on an exchange they can tell.

Bitcoin the same.

If you do it p2p they can't know.

Which exchanges?

Bitfinex