I pay local taxes on goods and services paid in local fiat currency when the banking system us used.
If I don't use fiat on ramps or off ramps, I'm effectively not participating in any economic activity that is taxable in this jurisdiction.
Local rules don't vanish, they just don't apply to assets that are outside of its jurisdiction and cannot be tied to my identity.
Also, I lost all my cryptocurrency in an unfortunate boating accident.