Maybe a better strategy is to discourage crypto through fiscal policy: Imagine 90% capital gains tax on crypto profits, no credits for capital losses on crypto, 10% crypto wealth tax. Put those taxes to use fighting climate change.
At 90% taxation why wouldn’t wealthy crypto holders just leave the tax jurisdiction?
Like, it’s not a bunch of gold bricks or a briefcase full of paper money...It’s not controlled by a bank who can deny your transfer. Anyone can take all of their crypto anywhere on Earth, and can do so instantaneously and virtually anywhere with an Internet connection.
If it was the US tax jurisdiction that someone is trying to leave, then that person would need to give up their US citizenship, not create any suspicion that they are leaving due to tax reasons, and also pay taxes as if they have sold off everything they own.
Argentina has implemented many of these "solutions" trying to keep the dollar under control. The result is prices keep going up, local currency keeps going down and there's an entire parallel market to avoid the taxes. I expect the same to happen to Bitcoin if that is implemented.
