Should cryptocurrency exchanges report transactions to the Internal Revenue Service?

As a financial expert, I must inquire: should cryptocurrency exchanges be obligated to report all transactions to the Internal Revenue Service? With the rise of digital currencies, there's been a growing concern over tax evasion and illicit activities facilitated by the anonymity of these exchanges. Reporting transactions would undoubtedly aid in preventing tax fraud and the financing of illegal activities. However, this also begs the question of privacy. Does the government have the right to know every financial move made by its citizens? What are the potential risks and implications of such a mandate? Surely, a balanced approach must be taken to ensure both financial security and individual privacy.