Where is Crypto Banned?
This article focuses on the countries that have banned Crypto Trading, discussing the legal rulings, penalties and regulations respective governments of countries have imposed on the usage of cryptocurrencies.
Cryptocurrency giant Bitcoin is getting 10 years old this year; still, the digital currency remains a grey area for most legal systems in the world. Someone who has witnessed the volatile crypto-verse will agree that the decentralized nature of cryptocurrencies makes it difficult to be legalized. Also, the anonymity of its usage prevents the ruling governments of countries to explicitly regulate terms of exchange or trade as with the traditional fiat currency.
While developed nations like the United States, Australia, Canada, and those in the European Union have said yes to cryptocurrencies, the relationship between governments and the digital currency in other nations between 2017 and 2018 became significantly tense, resulting in outright bans on owning, trading or buying cryptocurrencies. Let us look at some places where Crypto is Completely Banned:
Although the most prominent players in the crypto-verse initiated their journeys from South Korea, the country has recently started imposing restrictions on private crypto tokens like monero (MXR) and zcash (ZEC). On March 21, the government ordered crypto traders to delist both the tokens for the heightening increase in money laundering and cybercrimes.
In 2014, Bolivia became the first and the only country in South America to ban the usage of cryptocurrencies explicitly. It ordered the central banks to totally prohibit the exchange of decentralized crypto coins in order to protect its national currency. The Bolivian government has, however, made provisions for the creation of crypto coins under central governance.
Nigeria announced strict bans on cryptocurrency in February 2021, going as far as threatening banks that deal in crypto wallets would be shut down. Crypto services have been prohibited in Nigeria since 2017, but the current ban doubles the prohibition in that it has mandated the termination of financial institutions that engage in any kind of cryptocurrency exchange or trading.
Ecuador placed an outright ban on decentralized currencies as early as in 2014. In Ecuador’s National Assembly, monetary laws were amended to permit “electronic money” for payments, simultaneously disallowing crypto coins that are not directly controlled by the Nigerian government.
Algeria has completely banned the use of any kind of “virtual currency” or any monetary system that demonstrates the “absence of physical support such as coins, paper money, or payments by check or credit cards.” It implemented the stringent ban in 2018, making it a punishable offence for anyone who tries to own, buy, trade or exchange digital currencies.
The Dar Al-Ifta considers cryptocurrencies as “possibly damaging to the national security and economic health of Egypt,” thus declaring cryptocurrencies “haram (forbidden)” under the Sharia Law, 2017.
In 2018, Qatar Central Bank’s Supervision and Control of Financial Institution Division warned the country’s financial institutions against dealing in “bitcoin, or exchange with another currency.” It also imposed penalties for opening an account in cryptocurrencies. It also forbade the citizens from “sending or receiving any money transfers for the purpose of buying or selling this (bitcoin) currency.”
Turkey has enacted a ban on cryptocurrencies most recently in 2021; however, restrictions were already in place for the past few months. Curbs on crypto trading and crypto mining were made functional due to the lack of a central regulatory authority in the currency system. The government of Turkey also considers crypto trading a risk for investors who are unable to recover any losses.
Back in 2017, Nepal’s Rastra Bank enforced a complete ban on cryptocurrencies and ordered law enforcement agencies to impose fines and imprisonment on those dealing in crypto coins, crypto wallets or any kind of crypto exchange.
The Central Bank of Bangladesh prohibited the use of cryptocurrencies in 2018, warning strictly against “transactions in bitcoin.” The government has termed crypto wallets, crypto coins, crypto tokens as “illegal” under its “Money Laundering Prevention Act,” stressing that crypto trading with “unnamed people” will account for a penalty. It further asked the citizens to refrain from “assisting, performing and advertising all kinds of transactions” done in digital currencies.