Bitcoin Ban: Which Countries Do Not Allow Cryptocurrency?

Bitcoin Ban: Which Countries Do Not Allow Cryptocurrency?

Cryptocurrencies such as Bitcoin, ethereum are heavily regulated or declared illegal in a lot of countries around the globe.   

The online digital currency bitcoin, officially made its debut in 2009, giving birth to a new era of cryptocurrency. While authorities are still debating it's presence and its regulation, the most important question yet remains, "Is bitcoin legal or illegal?"

Who Regulates Bitcoin?

Bitcoin is not really regulated or endorsed by any central bank, the online market decides its value, which makes it dynamic currency that keeps changing. Cryptocurrency is the result of a computer-generated process known as mining. And in addition to being a cryptocurrency unregulated by any government, bitcoin or such altcoins (Alternative crypto coins) is a peer-to-peer payment system as it ceases exist in a physical form. Thus, it offers a convenient way to conduct cross-border transactions with no border tax. Consumers can purchase their desired services via online retailers in exchange of bitcoins.

The currency is being traded on stock market, and the virtual currency-related ventures or initial coin offerings (ICOs) gather interest from around the world on the investment spectrum. While bitcoin seems to be a well-established and beneficial virtual currency system, the uniform international laws Below is the list of countries that do not allow cryptocurrency

Also Read: 10 Best Cryptocurrency Trading Sites With Low Fees

Countires That Have Banned Cryptocurrency

1. Algeria

Since the passing of a financial law in 2018, cryptocurrency prohibits the use of cryptocurrency, making it illegal to buy, sell or have access to any of such virtual currency

2. China

China has investigated cryptocurrencies with high intensity throughout 2021. Warnings were repeatedly issued by Chinese officials for people to stay in the clear of any digital asset market and prohibited any mining activity in the country as well as currency exchanges in the country or overseas.

Yin Youping, Deputy Director, Financial Consumer Rights Protection Bureau, People’s Bank of China (PBoC), on August 27, referred to cryptocurrencies as unsafe assets and warned people to “protect their pockets”. In efforts to undermine Bitcoin - a decentralised currency with no control of government of any authority is seen as a possible attempt by the Chinese authorities to float their own e-currency

3. Egypt

Egypt brought changes in the banking laws in September 2020 in order to prevent illegal trading and crypto promotion. Dar al-Ifta, is country’s respected primary Islamic advisory body, it issued a religious statement in 2018, defining Bitcoin transactions as “haram,” (something prohibited under Islamic law.)

4. Colombia

The financial institutions in Colombia are not allowed to govern any Bitcoin transactions or crypto transaction. The Superintendencia Financiera refused to "protect, invest, broker, or manage virtual money operations” in 2014 as stated by Financial institutions.

5. Indonesia

From 1 January 2018, new regulations were issued, banning virtual currencies, including bitcoin as a mean of payment by Bank Indonesia, country's Central Bank.

6. Bolivia

There has been a complete ban on the usage of virtual currencies since 2014. The Bolivian Central Bank issued a regulation, banning cryptocurrencies or any other currency not regulated by Bolivian government.

7. Iran

The Iranian regime and bitcoin has always had a complex relatioship. To evade the impact of poor economic sanctions, Iran turned to practice of Bitcoin mining which financed the imports.

The Central Bank prohibits trading cryptocurrencies which are mined in foreign countires, and it increased Bitcoin mining in the country with incentives. To end this, a four-month ban on Bitcoin mining is issued by the Iranian Government until September 22.

Also Read: Everything To Know About Investing In Dogecoin

8. Nepal

August 2019 marks the date when Bitcoin was declared illegal by The Nepal Rastra Bank.

The Bottom Line

Bitcoin is over 10 years old, and many countries still do not have a uniform system that can regulate or ban cryptocurrency. The unregulated and decentralized nature of bitcoin challenges governments on how to prevent criminal transactions while keeping it legal. Overall, bitcoin still tends to remain in the legal gray area.

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