Bitcoin is a decentralized currency which floats here and there all over the internet and it isn’t even a printable currency.
Many countries don’t legalize it because legal authorities don’t have any way of controlling this type of digital money. But, some countries say yes to these booming cryptocurrencies.
In April 2018, Australia legalized the exchange of cryptocurrencies including bitcoin. All the cryptocurrency businesses who use to or want to deal in cryptocurrency should register first with anti-money laundering and counter-terrorism financing (AML/CTF) regulator. after this, transactions must be reported to AUSTRAC. So, bitcoin is considered as a local currency in Australia.
United States of America
In 2013, US legalized the Bitcoin exchange activities in which the Financial Crimes Enforcement Network (FinCEN ) stated that cryptocurrency is acceptable as far as it is done from the minor and major marketplaces who keep a record and provide it to accountable authority. In the US, Bitcoin is not considered as currency, instead, it referred as money service business (MSB).
There are so many shops in the US that accept BTC as a mode of payment and treated as local currency, one can invest and convert them into bond or cash. US also imposes a tax on the virtual currency.
According to Government of Canada webpage on cryptocurrency, one can use a cryptocurrency to buy goods and services. However, a tax would be imposed on each and digital currency transaction as per Canada’s tax laws. This is because they see it as a commodity, not as government-issued currency. Lastly, it cannot be considered as legal tender in Canada to meet the financial debt. Similar to Australia, businesses that engage in bitcoin transaction must register with Financial Transactions and Reports Analysis Centre which would help them to keep records and monitor suspicious transactions.
Recently, Bitcoin is also legalized by China. A person can use bitcoin for buying goods and services without seeing it as a violation of a law. In October 2018, Chinese court stated that Bitcoin is protected by law and qualified as property, transferring & owing it, is not illegal.