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The continuous increase in the operation of cryptocurrencies all over the world is no longer news as each year passes by, however, what keeps getting new every day is the fading legality of the currency in some countries, even though most people now use them as their traditional currency mainly when dealing with international exchange and trading.
PlasBit has noted that cryptocurrencies’ potential and value to the unbanked and underbanked has helped the currency grow massively and quickly become part of the natural world. Despite all this recorded, vivid and noticeable development of the currency, PlasBit has still been able to acknowledge the fact that not all government sees the insight to it, while some governments fully embrace them, others are skeptical of their potential and have banned them altogether. As a result of this different point of view from different angles of the world, individuals and businesses need to be aware of which countries have banned cryptocurrencies and what the consequences of breaking the law could be.
At PlasBit, Our goal remains to keep you updated and informed with the latest developments and regulations concerning cryptocurrency worldwide. That is why we will discuss the list of global crypto-banned countries in detail. Guiding us automatically on the path to take when dealing with cryptocurrencies internationally, you should know that not all countries welcome the legal operation of cryptocurrencies. Most of the time, breaking their laws leads to severe punishments.
Which Countries Have Banned Crypto?
Below is the full detailed to the crypto-banned countries list we have in the globe
China
China has played a significant role in the cryptocurrency market as one of the world's largest economies. However, in recent years, the Chinese government has become increasingly wary of cryptocurrencies, citing concerns about financial stability and the potential for fraud. In 2013, the People's Bank of China (PBOC) issued a statement banning financial institutions from dealing with cryptocurrencies. In 2017, the Chinese government went further, banning all initial coin offerings (ICOs) and ordering cryptocurrency exchanges to shut down.
Russia
Another country that has been skeptical of the operation of cryptocurrencies is Russia. The Russian government has taken a hardline stance on cryptocurrencies, with the Russian Central Bank warning that they could be used for illegal activities such as money laundering and terrorism financing. In 2019, the Russian government passed a law banning the use of cryptocurrencies for payment. The law, which became effective on January 1, 2022, prevented using cryptocurrencies as a means of payment for goods and services. The restriction of the currencies by the banned law applies to all cryptocurrencies, including bitcoins and Ethereum.
The law also prohibits the issuance and circulation of cryptocurrency, making it challenging for businesses and individuals to use cryptocurrencies legally in Russia. The government has also blocked access to crypto-related websites and services, making it difficult for Russians to access the cryptocurrency market. Hence making Russia belong to the crypto-banned countries list in the globe.
Bolivia
Bolivia was one of the first countries to ban cryptocurrencies. In 2014, the Bolivian government declared that cryptocurrencies were illegal. The government cited concerns about the potential for cryptocurrencies to be used for illegal activities, such as money laundering and drug trafficking. This banned was further enforced intensely in 2022 after placing a ban on all tokens.
The ban has been strictly enforced, with the Bolivian government cracking down on crypto-related activities and imposing fines on violators.
Nepal
Nepal could be identified as one of the crypto-banned countries list as far back as 2017. The Nepalese government banned cryptocurrencies in the country in 2017, citing concerns about the potential for cryptocurrencies to be used for illegal activities, such as money laundering and terrorism financing.
The ban has been strictly enforced, with the Nepalese government cracking down on crypto-related activities and imposing fines on violators.
Ecuador
Ecuador was one of the first countries to launch its cryptocurrency, the "Sistema de Dinero Electrónico."(Electronic Money System) However, in 2014, the Ecuadorian government banned all cryptocurrencies other than its own. The government cited concerns about the potential for cryptocurrencies to be used for illegal activities, such as money laundering, drug trafficking, and the potential for financial instability.
The ban has been strictly enforced, with the Ecuadorian government cracking down on crypto-related activities and imposing fines on violators. As a result, Ecuador has become one of the least crypto-friendly countries, making it fall under the category of the crypto-banned countries list in the world.
Iran
Iran banned cryptocurrencies in 2018. The ban protected the country's economy from the risks associated with cryptocurrencies. The Central Bank of Iran issued a statement warning citizens against using cryptocurrencies, stating that they were not recognized as legal tender and that their use could lead to financial losses.
The government of Iran was also concerned about using cryptocurrencies for illegal activities, such as money laundering and terrorist financing. Additionally, the government was concerned about the potential for cryptocurrencies to be used to bypass international sanctions. The ban on the currency came in after the surge in the popularity of cryptocurrencies in Iran, with many circumventing international sanctions. The ban did not stop the Iranians from using cryptocurrencies, as most continue using them through peer-to-peer interactions, underground channels, or VPNs to access foreign exchanges. Iran could be seen identify as one of the crypto-banned countries list in the world.
Kyrgyzstan
Kyrgyzstan banned cryptocurrencies in July 2014, citing concerns over their use in illegal activities and potential risks to the country's financial system. The Kyrgyz government also expressed concerns over the high volatility of digital currencies, which it believed could harm the country's economy. In July 2021, the government passed a law banning all cryptocurrency activities in the country. The National Bank Of the Kyrgyz Republic (NBKR) identifies more concerns over the lack of regulation and cases of fraud and scams. The Kyrgyz further emphasized that the risks associated with cryptocurrencies outweigh any potential benefits. The ban’s effectiveness indicates that all forms of buying, selling, and trading digital assets are now illegal in Kyrgyzstan, making the country to be identified as another banned crypto country in the world.
Bangladesh
In 2017, the country’s central bank issued a statement warning the public about the risks of using cryptocurrencies as they are not recognized as legal tender. Bangladesh banned cryptocurrencies in September 2019 on concerns over their use in illegal activities. The country's central bank issued a circular prohibiting financial institutions from dealing with cryptocurrencies. The circular also warned individuals against using digital currencies, stating that anyone caught using them would face legal action. Despite the controversial ban, with many cryptocurrency enthusiasts arguing that it was a decision that refused to consider the benefits of digital currencies, Bangladesh's central bank remained firm on its stance because it was necessary to protect the country’s financial system. Hence Bangladesh remains among the banned crypto countries list.
Nigeria
Nigeria is one of the latest countries to ban cryptocurrencies, with the country's central bank issuing a directive in February 2021 prohibiting financial institutions from dealing in cryptocurrencies. The Central Bank Of Nigeria justified this act as a necessary means of protecting the financial system from risks associated with cryptocurrency transactions. The directive also ordered banks to close accounts of individuals or businesses that deal in cryptocurrencies. Despite the ban, many Nigerians continue to trade through international platforms and peer-to-peer exchange.
India
India is another country that is identified along the crypto-banned countries list globally. It has placed strict regulations on cryptocurrencies. In April 2018, the Reserve Bank of India (RBI) issued a circular prohibiting banks and other financial institutions from dealing with individuals or businesses in cryptocurrencies. However, in 2021, the government announced its plan to ban most cryptocurrencies while they release a central-banked digital currency.
Morocco
In 2017, the Moroccan government issued a statement warning its citizens against using cryptocurrencies, stating that they were "not supported by any financial institution" and could be used for illegal activities. Based on these conclusions, The Moroccan Exchange Office has clarified that cryptocurrency transactions are subject to penalties and fines. This ban is a result of the government's request in wanting its citizens to facilitate and aid transactions through registered and regulated exchanges. Hence ensuring that financial institutions support each citizen's choice of virtual payment. The continuous usage of cryptocurrencies within Moroco has made Bitcoin the trading hub in Nigeria.
Qatar
Discussing the consequences of trading Bitcoin in Qatar leads to the possibility of the currency being dimeillegallyal. In 2018, Qatar also joined the crypto-banned country list. In trying to defend its action, the Qatar government showed interest in developing blockchain technology. Banks in Qatar no longer deal with cryptocurrencies legally.
Vietnam
Using cryptocurrencies as a means of payment in Vietnam is now an offense. Although the country's government still allows for the trading and holding of the currencies, their issuance and regular use come in handy with the punishment of paying fines, classifying it as one of the crypto-banned countries list globally.
Algeria
Based on unregulated and volatile means of operation, according to the Algeria government, a law was passed in 2018 that prohibited using any of the cryptocurrencies. This has put Algeria on the crypto-banned country list since 2018.
Ghana
Ghana also falls into the group of the crypto-banned countries list in the year 2021. The Bank Of Ghana (BOG) banned all cryptocurrencies in the country in 2021 due to the concern directed toward the lack of regulation and potential risk to financial stability. The banning of these digital currencies went as far as closing down accounts of individuals and businesses in the transactions, emphasizing that cryptocurrencies are not legally recognized in Ghana. Hence they cannot be used as a means of payment.
Iraq
Iraq became part of the crypto-banned country list in 2018 when the central bank of Iraq (CBI) announced the ban on all cryptocurrencies due to possible risks associated with virtual currencies and their decentralized unregulated status.
Mexico
In the middle of 2021, the government of Mexico declared a ban on all cryptocurrencies because they are not legal tender in the country. This ban and unrecognition of the currency as nonlegal tender categorize Mexico as one of the crypto-banned countries listed globally.
Turkey
On April 16, 2022, the central bank of Turkey banned the use of cryptocurrencies to exchange goods and services. Emphasizing further that any central authority does not back cryptocurrencies makes it easier for the country to be highly susceptible to fraud, hacking, and other illegal activities.
The crypto ban countries list identifies the different position and view of digital currencies and their place in the global financial system. While some governments embrace cryptocurrencies, most others have taken what is believed to be a cautious approach and banned the use of it as an exchange.
However, regardless of your country, you have no reason to be wary when dealing with cryptocurrencies. In achieving our aim and target in PlasBit, one of our key factor's services is to empower the blockchain to showcase the value behind crypto assets not beholden to country orders or specific governments. Using the PlasBit wallet, our users are provided with detailed transaction history and real-time market data, allowing them to make informed decisions. PlasBit wallet is the best option to consider if you want to manage your cryptocurrency investments securely regardless of your country being on the banned crypto countries list.
The fact that a good number of countries now belong to the crypto-banned countries list can no longer be denied, but what remains exclusive is that citizens of these countries still trade and exchange in cryptocurrencies. This is successfully done with the help of our services at PlasBit. Upholding the highest data and privacy standards for our customers, we adhere strictly to the banking regulations and industry standards that bring about the successful transfer exchange rate for our users.
Your cryptocurrencies remain safe with us at PlasBit regardless of the crypto-banned countries list you may belong to.
