If you use a crypto exchange to acquire cash and then purchase a Ferrari in cash, you probably will trigger IRS regulations that require the dealer to report a large cash transaction (>$10k)[0]. I cannot find clear documentation from the IRS that states cryptocurrency transactions trigger mandatory reporting, though it is possible that it is reported somewhere.
From my very biased perspective, Ferrari accepting crypto is just advertising to various "bad folks" (drug/gun/human traffickers) that they're not gonna tell the IRS.
It’s similar to how when I travel overseas, I have local currency in my account & that gets converted to local currency through an intermediary as I pay.
The intermediary usually charges a small fee. I only see local currency exit my account, and the seller only sees their local currency enter theirs.
