Five countries where cryptocurrencies are banned and why

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Cryptocurrencies are growing rapidly, but not everyone is on board as many countries around the world have banned these digital tokens from trading. While there are reportedly over 5,000 known cryptocurrencies in the world today and only a few months left in 2021, analysts and experts are still predicting a sharp surge in the value of Bitcoin, the world’s oldest and most valuable cryptocurrency. But where countries like India are rapidly expanding their crypto spaces, others like China, Russia and Bangladesh have been sown.

Regulators and administrators in these countries say they fear crimes like money laundering and hacker attacks. Let’s take a look at some of the countries that have banned cryptocurrencies.

China

China was once home to the largest number of Bitcoin miners in the world. While the reason for China’s ban on cryptocurrency remains unclear, a report by CryptDailyUse claims the decision was made in favor of lowering energy prices and the greenhouse gas emissions associated with crypto transactions.

Bangladesh

The Central Bank of Bangladesh does not allow crypto trading as it is against the country’s financial regulations. Trading in foreign currencies, including decentralized ones such as cryptos, is not permitted by law in Bangladesh. If a violation of the law is found, crypto traders in the Asian nation can be jailed for years, a report by Ccoingossip said.

Russia

The Russian central bank had already announced in September 2017 that it was completely against regulating cryptocurrencies as real money. Market pages for bitcoins and other cryptocurrencies are blocked in Russia. However, it is expected that Russia could rethink cryptocurrency trading in the coming future.

Egypt

Under the Islamic legislation of this country, cryptocurrency transactions are prohibited in Egypt. Egyptian Islamic adviser Dar al-Ifta believes cryptocurrencies could harm the country’s national security and economic health.

Morocco

The Moroccan Foreign Exchange Office had informed the nationals that transactions in virtual currencies were a “violation” of foreign exchange regulations. The decision to ban crypto trading in Morocco was also made in 2017. Recently, however, reports of a rapid increase in the illegal Bitcoin trade in Morocco have surfaced online.

It is speculated that the Moroccan government could allow crypto trading in the future under certain conditions.

Other countries like Turkey, Iran, Algeria, Bolivia, Colombia, Indonesia, Nepal and North Macedonia have also recently banned or restricted the use of cryptocurrencies. Countries like El Salvador are even officially adopting the use of Bitcoin.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.
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