People are increasingly using virtual money, like Bitcoin, that's not backed by any government. Many central banks have cautioned against it. But most authorities take a hands-off approach.
Here is how it is taken as in different countries
Bitcoin in Morocco
Bitcoin and other cryptocurrency transactions were officially outlawed in Morocco in November 2017 seemingly in response to a major Moroccan digital services company, MTDS, announcing a few days prior that it would begin accepting Bitcoin payments.
Sending and receiving payments via any cryptocurrency in Morocco is punishable by fines.
Bitcoin in Bolivia
Cryptocurrencies have never been legal in Bolivia and the government has been known to enforce its anti-Bitcoin stance rather firmly. People caught using Bitcoin and other cryptocoins can be fined and a number of users have even been arrested on more than one occasion for trading and mining Bitcoin.
Bitcoin in Ecuador
Ecuador outlawed Bitcoin and other cryptocoins in mid-2014 as part of its financial reform plans.
The ban on Bitcoin was seen by many as a way to reduce competition with the country's own digital currency system (Sistema de Dinero Electrónico). This official Ecuadorian currency isn't a cryptocurrency and isn't based on blockchain technology. It's simply a digital money solution based on traditional money and valued after the American dollar.
Anti-Bitcoin laws don't appear to be too strict in Ecuador as there are still several ways to buy and sell Bitcoin and other cryptocoins domestically. Enforcement isn't as strict as other countries like Bolivia and Bitcoin is seen as something that might be technically illegal but is still used by a small number of the population.
Bitcoin in China
The trading of Bitcoin and other cryptocurrencies was banned in China in September 2017. Due to the technology being so popular in the country before the ban though, the change in law hasn't ceased its use completely and many Chinese people continue to trade cryptocoins via in-person trades and chat apps like Telegram and WeChat.
The Chinese government appears to target professional cryptocurrency trading companies over individuals.
Bitcoin in Nepal
Nepal's stance on many aspects of Bitcoin and cryptocurrency is a little ambiguous however it has been confirmed that the trading of Bitcoin is considered illegal following several arrests of Bitcoin traders in 2017 that resulted in a combination of fines and jail terms for those involved. Attempting to use Bitcoin and other cryptocoins in Nepal is not recommended.
Bitcoin Laws Change as Much as Bitcoin's Price
Due to how new cryptocurrency technology is, most countries are still trying to figure out how to adapt to the numerous digital currencies that have sprung up in the past decade.
There remains a lot of debate globally around not only if Bitcoin and other cryptocoins should be recognized as legal tender but also if they should be taxable, how cryptocurrency trading should be regulated, and whether or not governments should monitor mining (the process in which cryptocurrency transactions are processed).
Cryptocurrency laws frequently update in many countries as the technology evolves and usage increases.
Bitcoin and International Travel
Laws and regulations relating to Bitcoin and other cryptocoins can change several times a year as financial institutions adapt to the market and government opinion shifts.
If planning a trip overseas, it's highly recommended to research the target country's Bitcoin policies beforehand via an official government website. This is especially important if travelling for business.
It's unlikely, as a tourist, that you'll be arrested in a country where cryptocurrency is banned for simply having a Bitcoin wallet on your smartphone or for carrying your Ledger Nano S hardware wallet in your pocket. Simply don't ask to pay in Bitcoin where it's not allowed and be careful of strangers encouraging you to do so if it's against the law.
Now, is it anonymous or traceable?
In general, Bitcoin is traceable.
All transactions are stored in a distributed public ledger called a block chain. It means every transaction since the early days of Bitcoin is there. There are many methods of forensic analysis in realm of cryptocurrency to identify users and their activities, though they are more complicated than conventional financial forensics.
In your case, when you buy coins on an exchange, you deposit funds there first. Although there are ways to do this with a high degree of anonymity through cash or money orders, the exchanges expect bank wire transfers or credit cards usually which are very personalised. Therefore all your activities on the exchange are identifiable internally and accounted perfectly. If the exchange receives a warrant from the local or federal authorities in case of any criminal activity, it releases all related data to them. When you withdraw your coins to an address (public key actually) not used previously, the exchange sends them from their hot wallet refilled with their cold storage or incoming transfers of the other traders. No one except you knows who owns this destination address, i.e. possesses the private key. Even the exchange doesn't know it for sure because you can send your coins to any third party such as your spouse, friend, relative or whoever else. However the forensic analysis can tell these coins originate from this exchange, so there is no absolute anonymity.
If you are interested in a high level of anonymity for your existing coins, you may transfer them through several hot wallets of high volume. It could be exchanges, gambling sites, public mixers, etc. This is like using a chain of proxies to get a less traceable Internet connection. However if you'd like the best anonymity possible, you need to purchase some kind of mining equipment and solo mine a block with a generation transaction (coin base) to a new address. This reward is very anonymous with no financial trail. Pool mining is less anonymous, but higher considerably than buying on exchanges. There are also pools not requiring even your email address and not keeping any usage logs such as the P2Pool network. So, you can buy as much anonymity as you need with Bitcoin and other cryptocurrencies.