I think the strategy is actually good for two reasons, one this will stop all the illegitimate or grey market trading of Cryptos as people would be incentivised to buy on exchange or institutional exchanges so that they get this tax incentive, similarly if you see from one perspective people will now be able to report crypto related crimes as the government is recognising it as an asset, crimes can also be caught and therefore criminals can be punished as well, but yes data collection of users is one disadvantage but honestly I am ready to bear with it as long as you are having these advantages.
Tracking suspicious funds can never be a convincing reason to impose these fiscal measures. We all know that criminals can use untraceable methods in addition to the money laundering policy.
These decisions affect a wide range of users and it can be said that they benefit directly. What concerns me is how this small group of senior users will find solutions to overcome the disadvantages of such a process.
