Over the past few years, cryptocurrency has taken the western world by storm, with the top crypto coins now worth thousands of dollars. But, while the crypto industry may seem like it's booming, a considerable number of countries have banned or highly restricted the use of cryptocurrency. So, which countries are saying no to crypto, and why?
1. China
China is a wealthy country that, until recently, had a thriving crypto market. However, the Chinese government decided to ban cryptocurrency trading and mining entirely. Since 2013, China has been limiting the use of cryptocurrency via numerous restrictive measures. These measures eventually resulted in a total cryptocurrency ban in September 2021, when the government made crypto mining and crypto transactions illegal.
These prohibitive laws resulted in the ban of all cryptocurrency activity across the country. Several exchanges announced that they would no longer be providing services to Chinese citizens while also blocking any Chinese IP from using said services.
While this seems pretty extreme, it really isn't much of a surprise when you consider China's state-run economy. The unregulated, decentralized nature of cryptocurrency would mean that Chinese authorities would not have a solid grasp of how things progress, which contradicts their economic ideas or desires. Too bad, really, given how hugely prominent China once was in the crypto mining industry.
2. Algeria
The North African country of Algeria saw a total ban on crypto in 2018 when a new law was introduced stating that all activity pertaining to "so-called virtual currency" would be prohibited. The Algerian government states that currency is virtual when it cannot be supported or substituted by any physical currency or document, such as a check, coin, or card payment. Anyone who breaks these laws will allegedly be subject to punishment under financial law.
3. Nepal
Nepal, the small, landlocked country on the southwestern Chinese border, made the mining and trading of cryptocurrency illegal in 2019 under the Foreign Exchange Act.
It is thought that the Nepalese government's exploration into a state-backed digital currency (which won't be as liable to possible crashes) is the reason why traditional, unregulated cryptocurrencies have been totally banned. So, we may be seeing a new Nepalese digital currency being established in the coming years.
4. Vietnam
While cryptocurrency isn't outright banned in Vietnam, you cannot use any form of cryptocurrency (be it Bitcoin, Ether, etc.) to make purchases. However, the mining of cryptocurrency and the use of blockchain technology is still legal—for now.
No one really knows why Vietnam has decided to forbid the use of cryptocurrency in transactions. Still, some speculate that they may be following China's lead, avoiding any sort of currency that they cannot regulate or more easily control. However, this is just an observation, so there may be another reason for this entirely that the country may or may not make clear in the future.
5. Russia
Russia hasn't yet done away with cryptocurrency, but the government is certainly trying to restrict its use. For example, in July 2020, Russia passed a law stating that cryptocurrency would be liable to taxation. What's more, using cryptocurrency as a payment method is currently illegal in Russia, with many claiming that authorities are concerned that allowing the use of cryptocurrency for payment will possibly destabilize the country's money supply.
However, Russian citizens are allowed to possess crypto wallets outside of the federation, so it's still a solid investment option in this case for the foreseeable future.
Though these laws have stood for some time, this may all be about to change. Russia's president, Vladimir Putin, has recently stated that cryptocurrencies do, in fact, have the right to be used for payment. However, he is still hesitant over allowing the trade of exports, like oil, to be facilitated using such currencies.
6. Bangladesh
Currently, Bangladesh does not allow cryptocurrency trading, as it goes against the country's financial regulations and laws, specifically the Foreign Exchange Regulation Act of 1947, the Money Laundering Prevention Act of 2012, and the Anti-Terrorism Act 2009.
This means that no purchases can be made and no trading can be conducted within the country, given that authorities consider digital currencies too much risk, given their unregulated, decentralized nature.
7. Ecuador
The South American country of Ecuador banned the use of cryptocurrency in July of 2014 while also deciding to create and use its own "electric money," which would be supported by the country's central bank.
However, the rising popularity of Bitcoin over the past several years has resulted in increased use of the coin in Ecuador, despite it still being illegal. Many Ecuadorian civilians still choose to both buy and sell Bitcoin. There's even a budding Ecuadorian Bitcoin community!
8. Egypt
While cryptocurrency isn't outright banned in Egypt, its religious law prohibits its use. The country's Islamic legislature essentially states that the presence and use of cryptocurrency may pose a threat to national security. It is also believed by the Egyptian government that the perceived instability of cryptocurrencies could harm the country's economy.
However, this ban doesn't seem to be stopping Egyptians from buying and using cryptocurrency. Crypto exchanges are still receiving thousands of Egypt-based registrations, which have, in turn, been met by warnings from Egypt's central bank. It seems cryptocurrency finds its footing everywhere!
9. Turkey
Turkey does have a cryptocurrency market, but the country's government isn't very happy about this.
In April 2021, the Turkish government banned the use of cryptocurrency as a payment method due to the associated risks. Turkey's president, Recep Tayyip Erdoğan, has made it clear that he intends to control crypto activity by imposing a regulation bill upon it. It's not yet known when this bill will be officially implemented or what this will mean for Turkish citizens who own cryptocurrency.
10. North Macedonia
North Macedonia is currently the only European country to have imposed a total ban on cryptocurrency. This means that spending, trading, or investing in cryptocurrency is entirely illegal. North Macedonia's national bank has stated that cryptocurrency-based activities are associated with criminal activities. It has also been stated by the national bank that the unregulated nature of cryptocurrencies makes them a financial risk (as multiple other national banks and governments have stated).
Most of the World Is Still Warming Up to Crypto
The cryptocurrency ecosystem isn't easy to understand and navigate, especially for those who have only recently been introduced to it. So, it may simply be a matter of time before the countries above slowly begin to accept the use of cryptocurrency, like the rest of the world already has. But, who knows, we may be seeing such bans and restrictions kept in place for years ahead. Like cryptocurrency itself, these things remain to be unpredictable!