Avoid capital gain taxes legally by not selling; instead, you borrow against your cryptocurrencies.
If you read the news, you will find that the governments are trying to tax cryptos to the best of their abilities, and some are even changing how they collect or estimate the total tax. In the case of the United States, the government is trying to promote the sharing of data to collect taxes between countries, and Slovenia is trying to collect taxes at the point of sale.
What politicians don't get is that with crypto paying taxes becomes an individual duty, and if individuals decide not to pay taxes, just as simple as that, they will not collect any taxes whatsoever. Many are already choosing to pay their taxes just because they don't want any problems with the government and others do it out of convenience.
Go and exchange your cryptos for fiat using centralized exchanges. You will have to pay your taxes because you know there is a paper trail following you and because we know that exchange houses are collecting our data to pass it over to the government. But suppose you were to acquire your cryptos using decentralized exchanges and decide to sell down the line. In that case, those cryptos you bought using peer-to-peer services have no record of you, mainly if you used cash to buy them in the first place, and your coins never mix or touch any centralized exchange at that point, you could get away with it, but it is always a risk with could end up with you in jail.
Many altcoins, including Bitcoin Cash, now will have DeFi features. Bitcoin Cash has cash fusion so that even if you got your coins using centralized exchanges, you can go and mix your coins around and around. In short, taxes become something that if the citizens decide not to report anything, they can do and avoid taxes significantly if they acquire them by either mining or peer-to-peer exchanges. Now, if you bought your mining equipment with bank accounts, the government will know, or if you purchased your mining equipment with cryptos through a centralized entity. Still, this carries a lot of risks.
Once capital gains taxes go beyond a certain point, citizens will seek not to pay such tax because there is an incentive not to pay it. For example, if you have to pay a 50% capital gain tax, that will mean you are losing half your income, and the government may not be giving you that value back in the form of services or benefits.
Now the rich will avoid paying taxes by getting loans against their crypto holdings and will never cash out profits and instead will cash out money from loans. In the case of Slovenia, that loophole will be closed because the government will charge you taxes for just using your cryptos. If you exchange your loan money for any cryptos, that will generate a taxable event where they seek to tax any movement.
In the case of the United States, I can go to Sovryn Zero Protocol to get a stablecoin loan and some cash to my bank account by using GUSD for Gemini exchange or USDC for coinbase. I will not have to pay any taxes for that money because it is a loan, and once I have used my cash and paid whatever I need, I can pay back the borrowed money and get my crypto back. It is a better way not to pay taxes or borrow. At least, that is true in the US.
When it comes to taxes, don't let that scare you because now we can do as the rich do. Instead of cashing out and paying taxes on capital gains, we, the poor, can now get a loan and pay it back without having to pay any taxes on that money because it is a credit line, and it is money that you have to pay back at some point. And I don't remember paying capital gain taxes on my credit lines.
And since it is borrowed money, you will only use it if you have to, not on things you don't need or for specific emergencies. And like Donald Trump said, cryptocurrencies are a disaster because he knows that if the poor start to save on crypto, he and his friends can't devalue our savings. If you need cash, you borrow against your cryptos holdings, and he knows that if poor people do that, eventually, no one will pay any taxes because every single withdrawal will only be a debt or credit line.
Biden Administration Pushes Global Crypto Data Sharing Rules in $3.5 Trillion Budget Bill: Report.
Slovenia Prepares to Impose 10% Tax on Spending and Selling Cryptocurrency.
https://news.bitcoin.com/slovenia-prepares-to-impose-10-tax-on-spending-and-selling-cryptocurrency/
Of course, Cryptos threaten governments. They will loose taxes if everyone adopt cryptos. That's why they attack and trying to stop them.