Countries That Banned Bitcoin and Why


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Bitcoin (BTC) is growing in popularity in various countries, Cryptocurrency It has even been declared the official currency of El Salvador, and a growing number of countries have banned cryptocurrencies from their territories.

Therefore, a recent study revealed that the number of countries with full or partial bans on BTC has doubled in the last three years.

As such, a study led by the Library of Congress listed countries around the world that have regulatory policies regarding Bitcoin and cryptocurrencies. Therefore, the study separates the list of countries that have applied regulatory policies to permit its use and those that have prohibited it.

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Countries where cryptocurrencies are banned

China

China has reiterated its stance on digital currency services and banned activities related to Bitcoin mining. This has caused turmoil in the market as Chinese machines may shut down.

Around May, the country represented 65% of the Bitcoin mining hash rate. Therefore, the cryptocurrency suddenly started declining. In fact, the world’s most famous digital currency hit below US$30,000 in just one month.

After mining became illegal, some miners actually turned off their machines. However, most of them emigrated to countries such as Uzbekistan, Paraguay and America. To date, China has completely banned all cryptocurrency transactions.

Qatar

Through a circular from the Financial Institutions Regulatory Department of the Qatar Central Bank, the country has notified local banks to stop trading cryptocurrencies.

This warning was issued in 2018. In 2020, the Qatar Financial Center (QFC) announced a formal decision on the ban on the use of digital assets.

According to local authorities, the reason given for the decision was the high volatility of digital currencies and their potential for use in financial crimes.

Egypt

In 2017, Egyptian parliamentarians banned cryptocurrency trading under Islamic Sharia law. Selling, buying, or renting digital assets in the country is prohibited. The argument used by local governments is justified by the fact that cryptocurrencies are not covered or supported as financial instruments by the Central Bank of Egypt.

The anonymity of transactions with digital currencies was also raised as a motivation for the ban, according to the local government.

Nigeria

In February of this year, the Central Bank of Nigeria issued a report banning local financial institutions from processing bitcoin and other cryptocurrency transactions. The guidance given to the agency was to identify and close accounts of customers who were buying, storing or selling digital currency. Failure to comply with this order may result in severe penalties.

According to broker Paxful, Nigeria is the world’s second-largest direct trading volume of cryptocurrencies.

Bolivia

In 2014, the central bank of Bolivia banned all decentralized currencies in the country, opening a gap only to currencies created by the government itself. This rule was created to protect the local currency and its investors. rice field. The country was one of the first to ban trading with cryptocurrencies and is the only country in South America to have such restrictions.

Bangladesh

The country banned the use of cryptocurrencies in 2017, making bitcoin trading illegal. In Bangladesh, being talked about among anonymous people could be interpreted as a crime against local anti-money laundering laws. based on that.

Iran

Also in May 2021, the Iranian Ministry of Information set up a nationwide commission to organize agents in charge of finding and shutting down illegal cryptocurrency mining farms. Information is from the Bloomberg portal.

Inspectors counted on the help of residents. To encourage Iranians to speak out, the government doubled the whistleblower’s reward to he US$873 (4.6 thousand reais). That’s seven times her national minimum wage.

In 2021, Iran banned cryptocurrency mining from May to September after repeated blackouts in several cities in the country, including the capital Tehran. The measures came into force shortly after President Hassan Rouhani’s statement, Reuters reports.

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Kosovo

Kosovo has not yet banned holding or trading cryptocurrency assets, but the government announced a ban on cryptocurrency mining in early January, blaming the growing energy crisis.

The country, which unilaterally declared independence in 2008, is facing a historic power shortage and is now implementing scheduled power outages to conserve energy.

In a further attempt to curb energy waste, Economy Minister Altan Rizvanori has announced a long-term ban on cryptocurrency mining in the country. Police are tasked with enforcing bans and identifying mining sites across the country.

Iraq

Cryptocurrencies are becoming increasingly popular in Iraq, despite persistent efforts by authorities to block its use. The Central Bank of Iraq has been particularly hostile, issuing a statement banning its use in 2017, which is still valid today. In early 2021, the Ministry of Interior of the Kurdistan Regional Government issued similar guidance banning financial intermediaries and exchanges from handling cryptocurrencies.

Mexico

It said in June 2021 that virtual assets are not legal tender and are not considered currency under existing laws, and virtual currencies are banned in Mexico. Despite regulations, some in Mexico are accepting cryptocurrencies, with the country’s largest cryptocurrency exchange Bitsos boasting his one million registered users.


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Conor the Tech Veteran
He previously spent 6 years publishing research on tech stocks, and believes in using a combination of fundamental, technical, and quantitative analysis. Prior to a career in tech stocks journalism he was a technology and semiconductor analyst with a research team.

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