Governments don't care if you use bitcoin or not. They can, and do, tax you based on whatever income you earn, in whatever currency it is denominated. Indeed, the US, Europe, and most of Asia already have tax laws for how to report income denominated in currencies other than the government's own currency.
Not reporting income denominated in bitcoin will simply result in prison time and financial penalties measured and payable in the government's currency.
Comments
Governments don't care if you use bitcoin or not. They can, and do, tax you based on whatever income you earn, in whatever currency it is denominated. Indeed, the US, Europe, and most of Asia already have tax laws for how to report income denominated in currencies other than the government's own currency.
Not reporting income denominated in bitcoin will simply result in prison time and financial penalties measured and payable in the government's currency.