Bitcoin Ban: These are countries where crypto is restricted or illegal

admin January 12, 2022 0

 

 Bitcoin has been controversial since its inception in 2009, as have the subsequent cryptocurrencies that have followed it.

While widely criticized for its volatility, use in malicious transactions and the exorbitant use of electricity to mine it, Bitcoin is seen by some, especially in developing countries, as a safe haven during economic storms.

But as more and more people turn to cryptos as either an investment or a savior, this problem has manifested in a series of restrictions on their use.

The legal status of Bitcoin and other altcoins (alternative coins to Bitcoin) varies substantially from country to country, while in some countries, the relationship remains to be defined correctly or is constantly changing.

While most countries do not make the use of Bitcoin itself illegal, its status as a means of payment or as a commodity varies with different regulatory implications.

Several countries have restricted the way Bitcoin can be used, with banks banning their customers from making cryptocurrency transactions. Other countries have banned the use of Bitcoin and cryptocurrencies outright with severe penalties for anyone conducting crypto transactions.

These are countries that have full ties to Bitcoin and other altcoins.

Algeria

Algeria currently prohibits the use of cryptocurrencies following the passage of a finance law in 2018 that made it illegal to buy, sell, use or hold virtual currency.

Bolivia

There has been a complete ban on the use of Bitcoin in Bolivia since 2014. The Central Bank of Bolivia passed a resolution banning it and any other currency that is not regulated by a country or economic zone.

China

Also read :Learn Crypto Investment, Take Advantage of Bitcoin's Rally Momentum

China has cracked down on cryptocurrencies with increasing intensity throughout 2021. Chinese officials have repeatedly issued warnings to their people to stay away from the digital asset market and have severely suppressed mining in the country as well as currency exchange in China and abroad.

On Aug. 27, Yin Youping, Deputy Director of the People's Bank of China (PBoC) Financial Consumer Rights Protection Bureau, called cryptos a speculative asset and warned people to "protect their pockets".

Attempts to weaken Bitcoin - a decentralized currency outside the control of governments and institutions - are largely seen as an attempt by Chinese authorities to develop their own electronic currency.

The PBoC wants to be one of the first major central banks in the world to launch its own digital currency, and in doing so will be able to more closely monitor its people's transactions.

On September 24, the PBoC went a step further and outright banned cryptocurrency transactions in the country.

Colombia

In Colombia, financial institutions are not allowed to facilitate Bitcoin transactions. The Superintendencia Financiera warned financial institutions in 2014 that they should not "protect, invest, broker or manage virtual money operations".

Egypt

Egypt's Dar al-Ifta, the country's main Islamic advisory body, issued a religious decree in 2018, classifying Bitcoin transactions as "haram," something that is prohibited under Islamic law. Although non-binding, Egyptian banking laws were tightened in September 2020 to prevent trading or promoting cryptocurrencies without a Central Bank license.

Indonesia

Bank Indonesia, the country's central bank, issued a new regulation banning the use of cryptocurrencies, including Bitcoin, as a means of payment starting January 1, 2018.

Iran

Bitcoin has a complex relationship with the Iranian regime. To avoid the worst effects of crippling economic sanctions, Iran has instead turned to lucrative Bitcoin mining practices to finance imports.

While the Central Bank prohibits trading of cryptocurrencies mined abroad, the Central Bank has encouraged Bitcoin mining in the country with incentives.

Also read :Get to know Cryptocurrencies and the Most Popular Types

About 4.5 percent of the world's Bitcoin mining takes place in Iran, which according to blockchain analytics firm Elliptic, can generate more than $1 billion (€843 million) in revenue.

For the crypto industry to thrive, Iran has offered licensed miners cheap energy but requires all mined crypto to be sold to the Central Bank.

However, unlicensed mining drains more than 2GW of the national grid every day, causing power shortages.

To this end, Iranian authorities issued a four-month Bitcoin mining ban until September 22.

India

India is becoming increasingly hostile to cryptocurrencies. On November 23, the government announced its intention to introduce a new law to the Indian parliament that would establish a new central bank-backed digital currency as well as ban almost all cryptocurrencies.

Earlier this year, he had considered criminalizing the ownership, issuance, mining, trading and transfer of crypto assets. Prime Minister Narendra Modi said he wanted to ensure crypto "does not end up in the wrong hands, which can ruin our youth".

Iraq

Despite ongoing efforts by the authorities to block its use, cryptocurrencies are becoming increasingly popular in Iraq. The Central Bank of Iraq was extremely hostile, issuing a statement in 2017 banning its use which is still in effect today. In early 2021, the Interior Ministry of the Kurdistan regional government issued similar guidelines to stop money intermediaries and exchanges dealing with cryptocurrencies.

Kosovo

While holding or trading cryptocurrency assets has not been banned in Kosovo, the government announced a ban on crypto mining in early January, blaming a growing energy crisis. The country, which unilaterally declared its independence in 2008, is facing a historic electricity shortage with scheduled power outages now imposed to conserve energy. In a further effort to curb energy wastage, Economy Minister Atrane Rizvanolli announced a long-term ban on crypto mining in the country. Police have been tasked with enforcing the ban as well as pinpointing mining sites across the country.

Nepal

Nepal Rastra Bank declared Bitcoin illegal in August 2017.

Also read :Bitcoin Ban: These are countries where crypto is restricted or illegal

North Macedonia

North Macedonia is the only European country so far that has an official ban on cryptocurrencies, such as Bitcoin, Ethereum and others.

Russia

Although cryptocurrencies are not banned in Russia, there are ongoing conflicts being waged against their use.

Russia passed its first law to regulate cryptos in July 2020, which for the first time established cryptocurrencies as taxable property.

The law, which came into effect in January this year, also prohibits Russian civil servants from owning any crypto assets.

Russian President Vladimir Putin has repeatedly linked cryptocurrencies to criminal activity, calling for closer attention to cross-border crypto transactions in particular.

In July, the attorney general announced a proposed new law that would allow police to confiscate cryptocurrencies deemed illegally obtained on the grounds of their use in bribery.

Turkey

Many people in Turkey are turning to cryptocurrencies as the value of the Turkish lira plummets. With some of the highest usage rates anywhere in the world, the arrival of regulation has been swift this year as inflation peaked in April.

On April 16, 2021, the Central Bank of the Republic of Turkey issued a regulation prohibiting the use of cryptocurrencies including Bitcoin, directly or indirectly, to pay for goods and services. The following day, Turkish president Recep Tayyip Erdoğan went a step further and issued a decree that crypto exchanges list companies subject to anti-money laundering and terrorism financing rules.

Vietnamese

The State Bank of Vietnam has declared that the issuance, provision and use of Bitcoin and other cryptocurrencies is illegal as a means of payment and is subject to fines ranging from 150 million VND (€5,600) to 200 million VND (€7,445). ).

However, the government does not prohibit Bitcoin trading or hold it as an asset.