Several countries have different financial regulation policies that regulate their economies. Digital currencies like Bitcoin are considered a financial product. However, not all countries welcome Bitcoin with open arms. Some countries are banning the use of cryptocurrency.
The 10 countries in which Bitcoin is banned
Coinpedia presents a list of the top ten countries in which the use of Bitcoin is prohibited:
China has become the number one bitcoin hub in the world hosting about 70% of bitcoin's global trade volume. However, the negative policies of the Chinese Communist Party shift these figures. Despite the China still restriction, hosting more than 9% of the global bitcoin trading volume. In China, around 90% of all banks are under the government.
This simple fact made it easy to prohibit the involvement of banks with cryptocurrency that reduces the bitcoin trade. On the other hand, only banks and their employees are limited to dealing with bitcoins. The common Chinese citizens are free to exchange cryptocurrency in the meantime.
During the early days of bitcoin, the Bangladesh government banned cryptocurrency by citing the lack of a central payment system. The government also explained that bitcoin could be harmful to Bangladeshi citizens. The bids traded on Bitcoins in Bangladesh are penalized in accordance with the Money Laundering Control Act and the Foreign Currency Control Act.
Bitcoin's ability to hide transactions led to its Ultimate Ban in Nepal. Towards the end of last year the Nepalese government slapped an indefinite ban on bitcoin trade in the country. Individuals suspected of bitcoin trade are under arrest and prosecuted in the court of the country.
During the first days of the bitcoin, around June 2014, the Bolivian government banned all the cryptocurrencies of the country. The government cited the lack of government control over bitcoin as the main reason for the ban.
In mid-2014, this country of Central Asia, located along the famous Chinese silk route, banned bitcoins. The government of the country has explained that the bitcoin does not have control of the central government. The government also explained that public and private bitcoin regulations are both unattainable. When in Kyrgyzstan I dare not use anything apart from the official currency, the Som.
Shortly before the Bitcoin bubble burst in late 2017, the Moroccan government banned the cryptocurrency. The government cited the non-traceability and lack of transaction regulations as the main reason for banning bitcoins in the country.
This Caribbean country banned bitcoins in 2014 after the country's national assembly banned all forms of digital currencies. Ecuador, however, started the idea of developing a state-owned electronic cash system. In Ecuador, cryptocurrencies are illegal for all citizens.
Iceland moved to ban bitcoins in March 2014 during the first days of cryptocurrency. But the country still allows its citizens to extract and own bitcoins. The ban focuses on avoiding capital flight from the economy in the form of bitcoins. This clearly explains that the country has learned its lessons from the 2008 financial crisis.
Bitcoin has been banned in Thailand since the start of Bitcoin co. Ltd has applied for a foreign exchange license from the central bank. The Bank of Thailand has denounced the lack of existing laws as the main reason for the ban.
Just like China, Russia is one of the leading Bitcoin hubs in the world with the highest figures for both bitcoin mining and trading. In February 2014, the Russian government banned the bitcoin classifying it as an illegal money substitute.
Do you think that these countries will one day release their bitcoin regulations? After all, what could be the prospects for Bitcoin? What is the normative atmosphere for bitcoins like in your country?
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Image courtesy – Wikimedia, Bitcoinist, CDNI, Blockonomi