You can gain forward looking privacy on KYC’d coins, but the centralized exchanges and government will always know how much you purchased
If you wanted to convert, you would have to sell it back through the kyc exchange (and pay any applicable capital gains taxes) and then use the fiat funds to purchase kyc-free elsewhere
Damn
Depending on your stack, time of purchase, and funding, that may work for you.
Ex: any coins you purchased during the last peak, you could sell at a loss and potentially have a tax write off.
Then take the funds and buy back in.
Depends on everyone’s personal situation of course
How would one go about achieving forward looking privacy?
Primarily coin joining (wasabi, whirlpool, etc)
With KYC’d coins, these help to privatize your future transactions. For example, if your employer pays in Bitcoin but it’s none of their business whether you spend it on rent or a mortgage or Home Depot or the pub.
Coinjoins can anonymize it. But it doesn’t change the centralized entity knowing what you received to begin with.
In other words, don’t try to get out of taxes and stuff - privacy is simply valuable for its own sake.
