bitcoin-banned-countries

Reasons Why The Bitcoin Banned Countries Now Exist

There is much recent news revolving around the relationship disorder of various governments across the globe and cryptocurrencies. Around 2017 and 2018 when Bitcoin was on its very first bullish run, governments across the globe witnessed its rising popularity. This is when the countries started to ban Bitcoin. At the present, there are many Bitcoin banned countries existing. 

Bitcoin Banned Countries List 2021

At the present time, many powerful countries have banned the use of Bitcoin in their nation. They have also banned cryptocurrency trading to avoid the loss of power from the monetary bodies and to stop illegal activities. We cannot deny the fact that there was a role of emotion in the increase of Bitcoin’s price. The fear of missing out on big numbers has kept Bitcoin and other digital currency demand higher. Here is a list of all the Bitcoin banned countries around the globe. The Bitcoin banned countries list 2020 is the same as 2021, only there is one addition and that is China. Now you may wonder, is Bitcoin banned in India? We will see this in the later part of this article. 

Bolivia

Bolivia stands at the top among the Bitcoin banned countries. It banned the use of Bitcoin in 2014. The central bank of Bolivia banned all forms of currency that the government did not regulate like the Bitcoin or other digital currencies in 2014. Authorities of Bolivia also banned its citizens from mentioning prices in other currencies that were not allowed in Bolivia’s National Institution. During this ban, Bolivia was the only South American company that was successful in banning a digital currency to protect the inventors and the national currency. 

Egypt

The reason for Egypt to ban Bitcoin was religion. Egypt has not put a direct ban on Bitcoin, but as per the Islamic Legislature, any transaction in digital currency is prohibited under the Sharia Law. The authorities of Egypt also think that the cryptocurrencies damage the security and economy of a nation. 

China

China has a long history with Bitcoin. In December 2013, the People’s Bank Of China decided to stop the use of Bitcoin as the news about the connection of Bitcoin with gun trafficking and illegal drugs came into the limelight. And now in 2021, China has successfully banned Bitcoin along with all other digital currencies, imposing strict rules on the mining of cryptos. The government has asked all the local banks and the crypto mining exchanges to shut down all ways by which digital currencies can be used in China. 

Turkey

Turkey is known to have banned the use of Bitcoin and stopped receiving any payments in cryptocurrency. Turkey was always imposing strict laws against the use of digital currencies and the ban of Bitcoin and the payments in crypto did not come as shocking news for the locals. Lack of control and a central body overlooking digital currency were the two main reasons behind this ban. Along with that the government also thinks that the highly fluctuating nature of cryptocurrency is very risky for the people. 

Algeria

Next in our list of Bitcoin banned countries is Algeria that while banning digital currencies and Bitcoin termed them as ”Internet money”. In 2018 Algeria banned the use of all digital currencies. According to the Arabic translation of their law, the reason behind the ban was that the digital currencies lack the physical support of paper money, coins, or payments by credit card or cheques. 

Bangladesh

Any transaction in Bitcoin is banned in Bangladesh. In 2017, Bangladesh announced the Bitcoin transactions to be illegal, and people who are getting into the use of these digital currencies were thought to be going against the country’s “Money Laundering Prevention Act.”

Nepal

Nepal arrested users for dealing in digital currencies. Nepal was also among those countries that levied a ban on Bitcoin and other digital currencies in 2017. Soon after this notice was given out, the law enforcement of Nepal arrested seven people who were caught dealing with digital currencies. 

UK

The UK is known to have banned the largest digital currency exchange that dealt with BItcoin. The UK’s ban on the Binance exchange shook the digital currency market. According to the Britain’s Financial Conduct Authority, Binance Market Ltd is not permitted to undertake any controlled activity in the UK. Binance was also asked to give out a notice to the US users of the restrictions of the FCA on its app and website. This ban is due to the finance exchange failing to meet the anti money laundering requirements. 

Bitcoin Legal Countries List 2021

Now that we have seen a list of Bitcoin banned countries, it is time to see the countries where Bitcoin and other digital currencies are legal. So now the first question that arose in your mind is, is Bitcoin legal in India?

The use of digital currency is not illegal in this country. The citizens of India can trade cryptocurrencies freely and can even invest in them. But the government of India is planning to start its own digital currency banning any other decentralized private digital currency. Let us have a look at the other countries where Bitcoin and other cryptocurrencies are legal. 

  • The United States
  • Canada
  • Australia
  • The European Union
  • El Salvador

Which country uses Bitcoin currency?

El Salvador is the only nation in the world that allows Bitcoin as its legal tender. In June 2021, the nation’s Congress permitted a proposal by their president Nayib Bukele to adopt Bitcoin as an official form of payment. 

Conclusion

Even though Bitcoin is over 10 years old, many countries still do not accept the working of cryptocurrency. The anonymous and decentralized nature of Bitcoin has challenged the government of many nations on how to allow the use of digital currency for legal purposes and stop them for criminal activities. The above is a list of Bitcoin banned countries in 2021. 


Frequently Asked Questions On Bitcoin Banned Countries

1. In what countries is Bitcoin illegal?

Bitcoin is banned in China, Mexico, Bolivia, UK, Nepal, Turkey, Egypt, Algeria and Bangladesh. All financial institutions and banks like payment processors are curbed from dealing or transacting in bitcoin. Cryptocurrency exchanges and digital currency mining are banned.

2. In which country Crypto is banned?

The central bank of Turkey has banned the use of digital currencies and crypto assets that includes the use of Bitcoin to purchase goods and services, citing possible “irreparable” damage and crucial transaction risks. There are other similar countries as well.

3. Is Bitcoin banned in China?

Trading in digital currency has been called illegal in China since 2019 in order to stop the activities of money laundering.

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