On-chain transparency but blurred identities—that's the real regulatory pain point.

Blockchain analysis platform Chainalysis released a report indicating that tax evaders have begun shifting to new digital assets such as Bitcoin Ordinals and BRC-20 tokens, attempting to hide wealth from tax authorities. The Foggia Economic and Financial Police Department in Italy recently uncovered a tax evasion case involving suspects who allegedly used the Bitcoin Ordinals protocol and BRC-20 token standard to conceal 1 million euros (about 1.1 million USD) in unreported capital gains. The investigation showed that the suspects created tokens using this technology, then sold them in market transactions at several times their initial cost, and transferred the profits back to their main wallet in Bitcoin for cyclical investment. (Cointelegraph)