News & Events, Tech

Some countries are issuing bans on Cryptocurrency

Will this ban stick?

words by: Sahar Khraibani
Jan 30, 2022

Since its inception in 2009, Bitcoin, as well as the numerous cryptocurrencies that followed, has been fraught with controversy. While Bitcoin has been extensively criticized for its volatility, usage in criminal transactions, and excessive use of electricity to mine it, some people, particularly in developing countries, perceive it as a safe haven amid economic storms. However, as more individuals turn to cryptocurrency as an investment or a lifeline, these difficulties have manifested in a slew of new regulations on how they can be used.


What you need to know

The legal position of Bitcoin and other altcoins (alternative currency to Bitcoin) vary significantly from nation to country, with certain relationships are still being established or changing often. While the majority of countries do not make it unlawful to use Bitcoin, its status as a payment method or a commodity differs, with different regulatory repercussions between each individual country and state.


Some governments have imposed restrictions on how Bitcoin can be used, with banks prohibiting their customers from completing transactions in cryptocurrency. Other governments have explicitly prohibited the usage of Bitcoin and cryptocurrencies, imposing stiff penalties on anyone who transacts in them.


Which countries have banned crypto

According to research from the Law Library of Congress, more than 50 countries have banned cryptocurrencies. The research that was published in 2018 was updated in the latest November 2021 report.


According to the research: “The number of nations discovered to have imposed cryptocurrency prohibitions has climbed dramatically during 2018,” with 9 countries having declared crypto an “absolute prohibition” as of November 2021, making it fully illegal. Some of the countries on the list are: Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia.


In 2017, China became the first country to outlaw cryptocurrency trading. Earlier in 2021, the country extended its ban to include crypto mining. 42 more countries have announced “implicit restrictions” on dealing with cryptocurrency by banks, lenders, and other financial institutions. Georgia, Turkey, and Saudi Arabia are among these countries.


Which countries have crypto tax

The number of nations submitting crypto to tax rules, as well as anti-money laundering and counter-terrorist financing regulations, have increased from 33 in 2018 to 103, according to the research. With the exception of Bulgaria, all of the European Union’s member nations now have this legislation in place.


Which countries have no laws in place for crypto

Brazil, Pakistan, Jordan, and Kazakhstan, for example, have no anti-money laundering or counter-terrorism financing laws in place for their crypto industry.


As crypto grows, so does interest from large corporations like Twitter and Amazon, with the former building their own dedicated crypto team and the latter creating their own digital currency.