They don't even need to do this. The moment you use your virtual funny money to make a really large purchase you will trigger a red flag and an audit. Whether they find your funny money or not it'll make life un-fun for a while.
It's really not much difference from selling meth for cash, you'd either be Gus Fring, a seemingly successful businessman who drives an old Volvo and doesn't look suspicious at all.
Or you'll be that stupid gang banger with no job, no income, who suddenly owns a Lamborghini with "Bitcoin" as license plate and a massive gold chain around your neck with the Bitcoin symbol on it.
Most countries has a capital gains tax for crypto already, it's only relevant when you cash out because otherwise you haven't technically made any profit.
When IRS makes public announcements like this the goal is to scare people into panic selling, like if DEA where trolling someone they suspected ran a secret methlab "We know what you're doing", 5 minutes later the secret lab is being moved to a new location, all while the DEA sits outside watching the equipment and gathering proof.
As usual, it's not the funny money that gets you busted, it's everything around.
They don't even need to do this. The moment you use your virtual funny money to make a really large purchase you will trigger a red flag and an audit. Whether they find your funny money or not it'll make life un-fun for a while.
It's really not much difference from selling meth for cash, you'd either be Gus Fring, a seemingly successful businessman who drives an old Volvo and doesn't look suspicious at all.
Or you'll be that stupid gang banger with no job, no income, who suddenly owns a Lamborghini with "Bitcoin" as license plate and a massive gold chain around your neck with the Bitcoin symbol on it.
Most countries has a capital gains tax for crypto already, it's only relevant when you cash out because otherwise you haven't technically made any profit.
When IRS makes public announcements like this the goal is to scare people into panic selling, like if DEA where trolling someone they suspected ran a secret methlab "We know what you're doing", 5 minutes later the secret lab is being moved to a new location, all while the DEA sits outside watching the equipment and gathering proof.
As usual, it's not the funny money that gets you busted, it's everything around.