We would be glad iy you would help us about: After saying your country and figuring out the situation of bitcoin and other currencies in your country, you can tell us your government's action for taxation for crypto currencies' transactions.
Accelerating Bitcoin's Transaction Processing. Fast Money Grows on Trees, Not Chains.Y Sompolinsky, A Zohar - IACR Cryptology ePrint Archive, 2013 - eprint.iacr.org
I think the above article will help you in this regard. You may want to check it out.
In many countries it is banned, in few of the countries legal frame work is there. In many countries law is silent about it.
But it can be dangerous, as unrestricted movement of money e.g. it can be used by terrorist and to hide black money.
I India though the government has equated Bitcoins and Crypto currencies as Ponzy schemes and hence no legislation is going to come related to them in near future, however the transactions are taxed with GST. Don't know the rational of that. Maybe the logic is as per the norms of Income tax that ' legal or Illegal both incomes are taxed.'
In the UK and India, the profit that you make out of the cryptocurrencies are seen as your normal annual gain and the normal tax bands are applied to it. For an example, if you withdraw £46,000 from an exchange to your bank account, you have to pay the higher tax band fee of 40%.
India, once viewed as a burgeoning, friendly environment for cryptocurrencies, has been clamping down on cryptocurrencies in 2018. India’s tough stance stems from similar concerns that other, more stringent regulatory regimes have cited: money laundering, illegal activity proliferation, sponsorship of terrorism, tax evasion, etc. While the cash-reliant country is facing stern regulations, participants of the local cryptocurrency industry do not believe India can “ban” cryptocurrencies through regulations in the same way China has.
It is complicated and covered in my book, Bitcoin: The Mother of all Scams. https://www.amazon.com/gp/product/B095NMLM2F
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