More and more people across several countries and geographies around the world are beginning to fear that digital currencies would be banned in their country. This has led to more and more people being apprehensive about investing in the digital currency market and are thus not investing in it. This has led to quite a downfall with many countries banning the mining, buying, selling, and trading using virtual currencies and also banning any transactions or purchases using it. This is done widely because these countries believe that these virtual currencies are bringing about a financial instability in their country. Keeping knowledge of any such bans is important to give diligence to any cryptocurrency related businesses.
Even so called global digital currencies like Bitcoin are banned in way too many countries. Several nations are yet to understand the revolutionary prospects of digital currencies like Bitcoin, Ethereum etc and are themselves dooming their future economically. In Bangladesh, the police went as far as to hunt down all Bitcoin owners and users. On the other hand, countries like Japan and Switzerland are welcoming this revolutionary new digital currency system with open hands and are looking to make great advancements in the fintech sector. Currencies like Bitcoin is universal in every geography around the world. Just like we have dollars in the United States, rupees in India and many more variations of legal currency, Bitcoin is universal around the world. It is borderless and does not change in different parts of the world. However, many countries still do not recognize it as a legal form of value exchange and looking at current trends, they do not plan to give it a legal status any time soon.
Countries that banned cryptocurrencies and bitcoin are:
- China – Although all sorts of digital currency trading and purchasing is banned in China, it is still very positive on the blockchain technology front. They even mentioned Blockchain in their 13th 5 year plan of the government report and also opened an Industrial Blockchain Park to attract economists, blockchain based startups and academia to further grow in the field of Blockchain.
- Algeria – Bitcoin was made illegal as of 2017. Not just buying, selling and trading, but holding Bitcoins has been recognised as a punishable offense too.
- Bolivia – A resolution was issued by the Central Bank of Bolivia, banning any digital currency which is not regulated by a country or economic zone.
- Ecuador – All decentralized digital currencies have been banned in Ecuador.
- Bangladesh – In accordance with this country’s anti money laundering laws, any holder of digital currency in any form would be sent to jail.
- Nepal – This country recently banned Bitcoins on 13th August, 2017.
- Indonesia – This country does not exercise complete ban on all digital currencies. It is legal to trade and hold digital currencies however, it is illegal to use them as a payment tool or form. This was announced on 1st January, 2018.
- Thailand – Since 2013, Thailand had been very discouraging of any form of digital currency trading or holding however since 2017, it is fine with Bitcoin. However, they still demand proper measures to be put in place.
- Vietnam – Just like Indonesia, it is legal to trade and hold digital currencies but one cannot use it as a payment tool.
- Macedonia – Using any digital currency as a tool or method of payment is illegal in Macedonia. In addition to prison, hefty fines are levied on the offenders too. All initiatives to introduce it as a payment tool in restaurants and cafes has failed.
- Brazil – All forms of cryptocurrency has been banned in Brazil.
- India – Digital currencies are not completely banned. Using any type of digital currency as a tool of payment is banned in india. Money laundering regulations have been put in place.
- Mexico – Mexico has a mixed stance on digital currencies. It is permitted however ICOs are regulated.
- United States of America – ICOs are prohibited here and strict regulations and monitoring is done when it comes to money laundering and illegal activities.
- South Africa – Although currently regulated, the government has announced a future regulation that would soon be put into place.
- South Korea – The activities relating to digital currencies are unregulated here however, one needs to provide their real names when making transactions and purchases. A public address is not enough. ICO regulations and tax regulations will soon be put into place too.
- United Kingdom – Although still unregulated, the government and financial institutions have called for a crackdown.