Privacy coins in Pakistan: The Crypto Answer to Tax Evasion?

Abstract

The rise of cryptocurrencies has brought new challenges for tax authorities worldwide, including in Pakistan. Privacy coins, a type of cryptocurrency designed to provide enhanced privacy and anonymity, have the potential to facilitate tax evasion. This study aimed to investigate the extent to which privacy coins are being used for tax evasion in Pakistan and explore the implications for taxation policies. Data was collected through surveys and interviews with cryptocurrency users, traders, and experts. Regression analysis and correlation tests were performed to examine the relationship between privacy coin usage and tax evasion intentions. The findings suggest a significant association between privacy coin adoption and tax evasion motives, highlighting the need for regulatory measures to address this issue.

Keywords: Privacy coins, Cryptocurrencies, Tax Evasion, Pakistan, Regulation