Bitcoin Ban: There Are the Countries Where Crypto Is Restricted or Banned
Every country has a different stance towards the latest technological innovations like blockchain and cryptocurrency. While some countries have welcomed this future currency, some still consider it as a threat to financial institutions and the economy of the country. In this article, we find such countries where cryptocurrency is restricted or illegal. Starting in 2009, the peer-to-peer technology of cryptocurrency has introduced the benefits of decentralized finance to people.
Financial experts and authorities are still doubting the regulation of this virtual currency. There are some countries like the United States, Canada, and Australia where Bitcoin and other cryptocurrencies were welcomed wholeheartedly by the authorities. On the other hand, many countries hesitate to support cryptocurrencies as they can be used to support money laundering, terrorism, and other illicit activities. This is why many countries have already put a ban on cryptocurrency.
Countries With Implicit Ban On Cryptocurrency
Let us take a look at the countries where cryptocurrencies are implicitly banned. These are the countries where crypto is not completely banned. Check below the name of the jurisdiction where you can have problems using cryptocurrencies.
Even though Georgia has maintained a leading position in the field of crypto mining, the country does not have any legislative restrictions on cryptocurrency. In 2019, the Minister of Finance of Georgia signed a bill on the taxation of cryptocurrency. In Georgia, individuals are exempt from income tax on any profit generated from the sale of cryptocurrency.
The government in Kuwait does not recognize cryptocurrency as suitable for official commercial transactions. This is why the companies and banking sector under the control of the government are prohibited from trading in cryptocurrencies. The country has also warned consumers about the risk of cryptocurrencies.
Libya has already announced that cryptocurrency is illegal in the country. The country has announced that no legal protection will be given to the individuals trading cryptocurrencies. Even though the country considers cryptocurrency illegal, it is also emerging as the center for crypto mining operations in the Arab world.
Vietnam does not recognize cryptocurrency as a legal means of payment. The Vietnam government has also started taking steps to prohibit this virtual currency. However, investment in cryptocurrency is not prohibited, and also there are no regulations to protect investors from any potential risks.
The Reserve Bank of Zimbabwe announced that cryptocurrencies do not have any legal tender status in the country. The government had also issued a public warning regarding the use of cryptocurrencies. In 2018, the Reserve Bank of Zimbabwe issued a circular that orders all financial institutions in the country to not use, hold or trade in cryptocurrencies.
Countries With Absolute Ban On Cryptocurrency
There are some countries that are surely not very satisfied with the use of cryptocurrency. This is why they have put an absolute ban on cryptocurrency. In fact, you can find strict regulations over this virtual currency in these countries. Check below the nations which are against the concept of crypto.
Cryptocurrency is considered illegal in Algeria. According to the 2018 Financial Law of Algeria, cryptocurrencies are prohibited in the country. As per the law, the use, sale, and possession of cryptocurrencies are prohibited in the country. The violation of this law is punishable as per the law.
Bangladesh has banned Bitcoin and other cryptocurrency transactions in the country. In order to avoid legal and financial threats, the Central Bank of Bangladesh has warned the residents against providing assistance in virtual currencies. The authorities have advised consumers that they may face different financial and legal risks of cryptocurrency.
China was one of the first countries to deal with cryptocurrencies. Once, China was the crypto trading and mining capital in the world. In order to avoid devaluing its own fiat currency, China banned all forms of cryptocurrencies in 2021. In fact, China is on to develop its own digital currency called Renminbi. At first, China prohibited financial institutions from engaging in any cryptocurrency transactions. Later, China banned all the domestic crypto mining in the country, and finally, it outlawed virtual currencies all over the country.
Egypt is another country that has banned virtual currencies within its jurisdiction. The primary Islamic legislator in Egypt issued a religious decree that classifies financial transactions in Bitcoin as ‘haram.’ According to this decree, the virtual currency can damage central financial systems and damage national security. In 2018, the Central Bank of Egypt issued a warning against the trading of Bitcoin and cryptocurrencies.
Iraq is also one of the countries that prohibited the use, sale, and trade of cryptocurrency. The country has stated that individuals trading and carrying out cryptocurrency transactions would be punished by penalties. Considering the potential impacts of cryptocurrency in the country, Iraq has come to the decision to ban virtual currency.
In order to ensure the safety of the banking sector and the financial institutions, Qatar has put a ban on the use, sale, and trade of cryptocurrency. Qatar Financial Center Regulatory Authority (QFCRA) stated that crypto-asset services could not be conducted. The authority addressed that there could also be penalties imposed on the firms that provide crypto services in the financial center.
Countries Where Cryptocurrency is Legal
Some countries have shown a positive stance towards Bitcoin and other virtual currencies. Individuals residing in these countries can use and trade in cryptocurrencies without any hassle. People can anonymously conduct transactions in cryptocurrency and get better safety and security with this virtual currency. “Many people also enjoy playing online sports casino games with a cryptocurrency. According to ukbitcoincasinos.com the online casino players are choosing crypto casinos before traditional casinos due to fact that they are more anonymous.”
Check below the countries where cryptocurrencies are legal.
Canada is one of the bitcoin-friendly countries out there. In Canada, any income from Bitcoin transactions is considered as business income. Cryptocurrencies are primarily regulated under securities laws to protect the people. Residents in Canada do not have to pay taxes for holding cryptocurrencies. However, selling, gifting, exchanging crypto, and buying goods or services with cryptocurrency is tax-free in Canada.
Australia has been a friendly country towards Bitcoin and other cryptocurrencies. The country is about to create a licensing framework for crypto exchanges. Similar to Canada, Australia considers cryptocurrency a financial asset that can be taxed. If you sell, gift, trade, exchange cryptocurrency, or convert it to fiat currency, you can trigger a capital gains tax.
The United States
U.S federal regulatory agencies have issued different policies regarding cryptocurrency transactions. According to the US Securities and Exchange Commission (SEC), cryptocurrencies can be considered securities, and the existing securities laws can be applied to digital assets. The U.S Department of Treasury has defined Bitcoin as a convertible currency that can act as a substitute for real currency.
El Salvador is the first country to use Bitcoin as legal tender along with the US Dollar. El Salvador’s Congress approved President Nayib Bukele to adopt Bitcoin as a form of payment in 2021. There will not be any obligation on residents to switch to Bitcoin.
Different countries are reacting differently to virtual currency. Countries like France, Denmark, Germany, Japan, Iceland, Spain, and Mexico have legalized cryptocurrency. Even though some countries are positive towards this virtual currency, many consider it a threat. However, some financial authorities believe it is the future currency.