Especially with the pandemic period, the number of people investing in cryptocurrencies has increased so much that almost all of us now have people who make or lose a lot of money from this latest model investment tool.
In fact, the popularity of cryptocurrencies has increased so much that even the Central American country El Salvador has announced that it has made Bitcoin its national currency with a revolutionary decision in the past years. But not every country has the same view on cryptocurrencies, as some of them ban cryptocurrencies altogether, preventing them from trading with their citizens.
Which countries have banned cryptocurrencies?
At the top of the list is the Bitcoin mining giant of a period: China
It can be said that the largest and most remarkable country among the countries that ban cryptocurrencies is China. The attitude towards cryptocurrencies of the world’s 2nd most populous country after India began with the banning of local cryptocurrency exchanges in 2017 and gradually progressed to a total ban on everything crypto related in September 2021.
However, China’s steps such as issuing a digital version of its own currency, the Yuan, show that it is not completely closed to cryptocurrency technology. What they really want is to be in control.
Besides money laundering and fraud in China, the biggest reason for these bans is the concerns that the crypto economy may harm the economic development in China.
One of the richest countries, but not very warm to cryptocurrencies: Qatar
According to the IMF, Qatar, one of the richest countries in the world, banned Bitcoin and all other cryptocurrencies in early 2020 through the country’s Qatar Financial Center Regulatory Board (QFCRA).
Cryptocurrency activity has been banned in Qatar due to price volatility, the possibility of financial crime, and lack of central government support.
Where Bitcoin is officially haram: Egypt
In Egypt, the ban took effect in 2020, with the central bank emphasizing that the value of crypto is not tied to any tangible asset and that only recognized national currencies are allowed to be traded in the country. Also in Egypt, Dar al-Ifta, the country’s primary Islamic advisory body, issued a religious decree in 2018, classifying cryptocurrency transactions as haram.
Cryptocurrencies are banned in Egypt due to the anonymity of cryptocurrencies, the possibility of being used in money laundering, and the incentive to trade with the Egyptian Pound, the country’s official currency.
Another North African country that cannot warm to cryptocurrencies: Algeria
Algeria banned cryptocurrencies in 2018 after the passage of a financial law that made it illegal to buy, sell, use or hold virtual currencies long before they achieved their real popularity.
Among Algeria’s reasons for banning cryptocurrencies, digital currencies can be used for illegal activities such as drug trafficking, money laundering and tax evasion due to the guaranteed anonymity of their users during crypto transactions.
When nobody knew what Bitcoin was, it was banned here: Bolivia
Perhaps, while few people in the world knew about cryptocurrencies, Bolivia hastily banned cryptocurrencies during the era of former prime minister Evo Morales. Since 2014, there has been a complete ban on the use of Bitcoin in Bolivia. The Central Bank of Bolivia has issued a decision banning Bitcoin and all other currencies that are not regulated by a country or economic region.
In Bolivia, then-prime minister Morales made this decision, arguing that cryptocurrencies threaten financial stability and can be used in criminal activities such as drug trafficking and terrorism.
Another country not good with cryptocurrencies: Bangladesh
Bangladesh, which has the second largest economy in South Asia, has a very complicated relationship with cryptocurrencies. Officially, there are bans on cryptocurrency transactions that are punishable by up to 12 years under the country’s money laundering and terrorist financing laws.
However, the country has recently proposed a new blockchain strategy that signals a warming towards crypto and virtual assets, and there are no fully credible reports of any convictions regarding crypto use.
Among the reasons for Bangladesh to ban cryptocurrencies, money laundering and the possibility of not having full access to certain powers are cited as reasons.
One of the places where using cryptocurrencies can be the most dangerous: Afghanistan
Another country where you can get into trouble if you can get cryptocurrencies is Afghanistan. When the Taliban took power again in 2021, they made the decision to ban the cryptocurrency in September 2021.
The Taliban, who are by no means pro-free markets, not only banned cryptocurrency, but also punished crypto users as harshly as they could.
The main reasons for the attitude towards cryptocurrencies in Afghanistan are the high volatility in the prices of cryptocurrencies and the departure of assets such as the US dollar due to the absence of crypto exchanges in Afghanistan.
Another country that bans cryptocurrencies, home of Mount Everest: Nepal
Nepal, also known as the heart of the Himalayas apart from its colorful festivals and cultural riches, banned cryptocurrencies in September 2021. The country’s central bank, Nepal Rastra Bank, has declared the use, mining and trading of cryptocurrencies illegal.
The main reason for Nepal’s tough stance towards cryptocurrencies is the high rate of fraud allegations in the sector and the illegal outflow of domestic capital.
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