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Countries Where Bitcoin is Illegal Explained

Cryptocurrency has created a storm in the western world. Now the top cryptos such as Bitcoin are worth many dollars. The industry of crypto may be booming but a lot of countries have banned it. Some have restricted its use.

The main reason for not yet legalizing Bitcoin as a legal tender can be its high volatility. Also, governments worldwide may be awaiting the underlying technology of blockchain to get upgraded before adding sovereign support to this digital currency. To start trading bitcoin check thecryptogenius.

Although discussion still continues but mentioned below are some countries where Bitcoin is still illegal.

China

  • China used to be the home of the biggest number of miners of Bitcoin globally.
  • However, the government claimed that cryptocurrency’s ban was to lower energy prices and emission of greenhouse fuel-related with cryptocurrency transactions.
  • Officials of the country have issued constant warnings to their people to not trade or invest in this digital asset and get involved in the crypto market.
  • Warnings were also issued on crypto mining and the exchange of currency in China or overseas.

Russia

  • In Russia, all market sites are blocked for Bitcoin and other cryptos.
  • But it may be seen that in the coming years, they may be reconsidering trading in this digital currency.

Algeria

  • In 2018, the country imposed a complete cryptocurrency ban.
  • It was done when a new law got introduced and stated that every activity pertaining to virtual currency will get prohibited.
  • The government stated that the digital asset is virtual as it can never be backed or substituted by a physical document like a check, card, or coin payment and currency.
  • Anyone breaking these laws will be subjected allegedly to some punishment under their financial law.

 Bangladesh

  • Cryptocurrency trading is not allowed by the country’s central bank because it is against the financial trading regulations of the country in foreign currency that are highly decentralized.
  • In Bangladesh, if anyone is found to practice crypto trading, then they may face many imprisonment years in the country. 

Nepal

  • In 2019 they made crypto trading and mining illegal under the act of foreign exchange.
  • The reason for the complete banning of cryptocurrency is the exploration of the government into one state-supported digital asset that will not be as accountable to prospective crashes.
  • In the coming days, there may be the emergence of a new digital currency in Nepal.

 Morocco

  • In 2017, cryptocurrency trading was banned in the country.
  • Morocco’s government may be allowing Bitcoin trading under the certain condition in the coming years.

Egypt

  • Crypto transaction is prohibited in the country under the legislature of Islam.
  • They believe that crypto may be dangerous to the national currency of the country and its economic health.

 Bolivia

  • In 2014, the central bank of the country banned every decentralized crypto.
  • They made provisions for allowing those the government created.
  • But such a ruling was placed in place for protecting their national currency and investors.
  • Bolivia was South Africa’s only country with an outright crypto ban.

Nigeria

  • In 2021, the country imposed cryptocurrency.
  • They banned not only banks but also financial institutions offering high and low-ramp cryptocurrency services from 2017.
  • The announcement also closed bank accounts that used crypto exchanges.

Qatar

  • In 2018, the country has warned many banks against crypto trading.
  • The country’s government told the banks never to carry on Bitcoin dealings or exchange it with any other currency.
  • They should not open any account for dealing with Bitcoin, send and receive money transfers for buying or selling Bitcoin.
  • Anyone who will be caught will be facing penalties. 

Ecuador

  • The country imposed a complete ban on decentralized digital currencies at the end of 2014.
  • In the National Assembly vote, their government amended their financial and monetary laws for allowing payments making use of electronic money. But they prohibited coins uncontrolled by their state.

Conclusion

The ecosystem of crypto is challenging to comprehend and navigate. Mainly for people who are new to this cryptocurrency industry. It may take some time for the countries mentioned above to slowly start accepting the cryptocurrency used similarly to other countries that already have. But maybe such bans or restrictions will be there for many years. Like cryptocurrency, such things still remain unpredictable.  

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Written by Marcus Richards

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