Five Countries Where Cryptocurrencies Are Banned, and Why

Cryptocurrency is growing fast, but some countries are not on board.

By Radhika Parashar | Updated: 21 September 2021 17:35 IST

Five Countries Where Cryptocurrencies Are Banned, and Why

Some nations fear cryptocurrencies may increase crimes like money laundering and hack-attacks

Highlights

Cryptocurrencies, since unregulated, can facilitate untraceable transfers
Crypto spaces growing in India, Pakistan and Vietnam
China and Russia are among biggest nations where crypto is banned

Cryptocurrencies are growing fast, but not everyone is on board, as many countries around the word have banned dealing and trading in these digital tokens. Today, while there are reportedly over 5,000 known cryptocurrencies in the world, and with just a few months left in 2021, analysts and experts are still predicting a sharp rise in the value of Bitcoin, the oldest, and most valuable cryptocurrency in the world. But where countries like India are rapidly growing their crypto spaces, others like China, Russia and Bangladesh have been cracking sown.

Regulators and administrators in these nations say they fear crimes like money laundering and hack-attacks. Let's take a look at some of the countries that have banned Cryptocurrencies.

China

China was at one point home to world's largest number of Bitcoin miners. While the reason behind China's ban on cryptocurrency remains unclear, a report by CryptDailyUse claims that the decision was made in favour of reducing energy prices and greenhouse fuel emissions associated with crypto transactions.

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Bangladesh

The central bank of Bangladesh does not allow crypto-trading as it goes against the country's financial regulations. Trading in foreign currencies, that too decentralised ones such as cryptos, are not allowed by law in Bangladesh. If found in violation of the law, crypto traders can face years of imprisonment in the Asian nation, a report by Ccoingossip states.

Russia

Back in September 2017, Russia's central bank had said that it was totally against regulating cryptocurrencies as real money. Market sites for Bitcoins and other cryptocurrencies are blocked in Russia. It is however expected that in the coming future, Russia might reconsider trading in cryptocurrencies.

Egypt

Under the Islamic legislature of this country, cryptocurrency transactions are prohibited in Egypt. The Egyptian Islamic advisory Dar al-Ifta believes that cryptocurrencies might be harmful to the national security and economic health of the country.

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Morocco

The foreign exchange office of Morocco had informed the nationals that transacting in virtual currencies were an “infringement” on forex regulations. The decision of banning crypto-trading in Morocco had also come in 2017. Recently though, reports of illegal Bitcoin trading growing rapidly in Morocco have surfaced online.

It is being speculated that the government of Morocco may allow crypto-trading under specific conditions in the coming future.

Other countries like Turkey, Iran, Algeria, Bolivia, Colombia, Indonesia, Nepal, and North Macedonia have also banned or restricted the use of cryptocurrencies in recent times, however as cryptocurrency gains momentum around the world, this is starting to change, with some countries like El Salvador even officially adopting the use of Bitcoin.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Further reading: Cryptocurrencies, Bitcoin, bitcoin banned

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More