The government shouldn't tax Crypto unless they recognize it.

I'm from a country where Crypto is not recognized by the government and therefore I do not have to pay any tax on my Crypto.

This should be so far the policy for the rest of the governments. Because, taxing something you don't recognize as an asset of value seems very off.

It's not like the government does anything for the Crypto market either. The crypto market is an independent market unlike the stock market or a Fiat currency as stocks and other traditional markets are usually bailed out and kept stable by the government.

A government that provides nothing to Crypto, refuses to recognize crypto as payment and yet expects all Crypto users to pay a tax on the same asset is just hypocritical.

TLDR: If a government refuses to fully recognize something as an asset, it should not turn around and make money off of it.