Regulations on crypto have been controversial since its inception. The legal status of digital currencies differs substantially from nation to nation. India has proposed a crypto bill that is said to be prohibiting all the private digital currencies with several exceptions. In this article, we are going to learn about the crypto restricted countries.
List Of Crypto Restricted Countries Around The Globe
The absolute prohibition of digital currencies mainly took place during 2017-18, which coincided with the bull run of Bitcoin. There are some nations that have placed restrictions on how Bitcoin or other digital currencies will be used, along with the banks and the financial institutions banning their users from making transactions in digital currencies or even charging heavy penalties for anyone who is making any transactions in crypto.
In this respect let us have a look at the list of crypto restricted countries across the globe where the use or even transaction in crypto is labeled as illegal. Let us begin with the cryptocurrency illegal countries list 2022.
The very first name that comes to our mind when we talk about all the crypto restricted countries is China. At one point China was the home to the largest number of Bitcoin miners across the globe. The Chinese government asserted that the ban on digital currency was to decrease the prices of energy and emissions of greenhouse fuel that are associated with cryptocurrency transactions. Chinese officials have frequently issued warnings to its citizens to stay informed of the digital asset market and have clamped down hard on crypto mining in the nation and currency exchanges in China and also overseas.
The central bank of Bangladesh does not permit crypto-trading as it goes against the financial regulations (Money Laundering Prevention Act) of the nation of trading in foreign currencies, which are at the same time decentralized. If anybody is found trading in digital currencies, those individuals can face years of imprisonment in the country.
Market sites for BTC and other digital currencies are blocked in Russia. However, it is anticipated that Russia might review trading in digital currencies in the upcoming days. To them, digital currencies can be used for the purpose of money laundering and also to finance terrorism. The central bank of the country stated that all the crypto transactions are illegal and they are completely banned.
Transactions in digital currencies are restricted in Egypt, under the Islamic Legislature. The Egyptian Islamic advisory, Dar al-Ifta, thinks that digital currencies might be harmful to the national security and economic health of the nation.
The next on the list of all the crypto restricted countries is Morocco. The foreign exchange office of Morocco had stated that transacting in digital currencies was termed as an “infringement” on forex regulations. The plan of banning crypto-trading in Morocco arrived in 2017. It is contemplated that the government of Morocco may permit crypto-trading under some particular conditions in the upcoming days.
Nigeria enforced a crypto ban in February last year. The biggest digital currency market in Africa restricted financial institutions and banks from offering on and off-ramp digital currency services since 2017. Along with that, the announcement even threatened to shut down bank accounts found using digital currency exchanges.
The central bank of Bolivia banned all decentralized cryptos in 2014. It also made rules to enable those formed by the government, however, this provision was put in place to safeguard the national currency and also protect investors. At the time, Bolivia was the only nation in South America with an absolute ban.
Ecuador enforced an absolute ban on decentralized coins, later in 2014. Through a vote in the National Assembly, the government of Ecuador amended the financial and monetary laws to grant permission for payments using “electronic money,” while restricting coins that are not controlled by the state.
In 2018, Qatar cautioned banks against trading in digital currencies. The government urged the banks to not
“deal with Bitcoin, exchange it with another currency, open an account to deal with it, or send or receive any money transfers to buy or sell this currency.”
Those caught were told that they would face penalties.
Many in Turkey changed to digital currency as the Turkish lira increased in value. With some of the largest levels of use anywhere across the globe, the arrival of regulations was smooth the previous year as inflation was at peaks in April. On 16 April 2021, the Central Bank of the Republic of Turkey generated a regulation restricting the use of digital currencies, that include BTC (Bitcoin). Turkish President Recep Tayyip Erdoğan talked further and issued a decree that crypto exchanges to a list of firms subject to terrorism financing and anti money laundering rules.
The last name among all the crypto restricted countries is Vietnam. The State Bank of Vietnam has announced that the supply, issuance, and use of BTC and other digital currencies are illegal as a way of payment and are subject to fines that may range from 150 million VND (€5,600) to 200 million VND (€7,445). Here even using crypto for buying is considered as illegal, but they are actively purchased as an investment tool. The nation is in the top three across the globe in the percentage of people asserting that they hold some form of crypto asset, as per a survey report.
The Closing Lines
In general, the use of digital currency is restricted for use as an exchange medium or a medium to store value, used as a system of payment, for offering services like trading, selling, and many more. It is often restricted for using it as a financial tool as well. In this article, we have stated all the crypto restricted countries across the globe where no crypto can be used. Now if you are wondering is crypto banned in India, the answer would be no. In India, as of now, crypto is neither legal nor illegal.