Yes, it is a violation of privacy. Forcing KYC and ID verification is a violation of privacy. Putting trackers on my wallet is a violation of privacy. I love how Europeans are perfectly content making anti encryption arguments when it means they could get more money out of others. The fact that taxes have anything to do this this at all highlights a bigger issue with taxes. Instead of being a fee the government charges for services they offer, they've become some slice of someone else's wallet you vote to be entitled to. You people talk the loudest about paying the fair share and yet are the last to want to do so yourselves.