I'm currently quite conservative about the expectations for "on-chain privacy": completely remaining unseen is basically unrealistic, but that doesn't mean you have to expose every transaction openly for the world to see. To put it simply, on-chain transparency is the default, and what can be done more is to reduce linkability—don't use the same address as a long-term account, and don't randomly post the same payment code everywhere.

As for compliance, don't expect a one-size-fits-all answer, especially recently in some regions where taxes are increased and withdrawal/deposit channels tighten and loosen. People's mindsets change immediately: when it's tight, they start to worry about "going invisible"; when it's loose, they act as if nothing's wrong. My approach is to think carefully about the most vulnerable points—deposit and withdrawal, custodial platforms, and the personal information you expose; on-chain tools can offer some protection, but if you're really targeted, often it's the off-chain side that reveals more first. Anyway, don't mythologize privacy, and don't treat compliance as a flood monster—first, define your risk boundaries, and sleep more peacefully.