Even though their use is rising, many governments have prohibited dealing and trading in digital tokens like bitcoin and cryptocurrencies. However, while some nations, like India, are quickly expanding their crypto markets, others, including China, Russia, and Bangladesh, have been cracking down on the industry. In these countries, regulators and administrators express concern about crimes, including money laundering and hacking.
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As governments and central banks became aware of the burgeoning cryptocurrency industry, ignoring it became impossible. Coincident with bitcoin’s (BTC) Bull Run, the outright restriction of cryptocurrencies mainly occurred in 2017 and 2018. Even though those were the most popular years for bans, several governments are still debating whether to impose restrictions on the use of these currencies. To get more information, visit the bitcoin mining
Should we Ban Cryptocurrency or Not
O’Brien is not shocked that governments have begun to take action against cryptocurrencies, says Danny O’Brien, the director of the Electronic Frontiers Foundation. “I guess I’m shocked it took so long,” he mutters. O’Brien attributes the current occurrence to two causes. For starters, there is an increasing number of crypto frauds – which increased by 40% in 2020 and will expand by 75% this year. Restricting bitcoin mining and use should, in principle, solve this issue. Bans, on the other hand, have little effect in deterring offenders in the real world. Fraudsters will continue to prey on unsuspecting victims, and making cryptocurrencies illegal would serve as an “illegal onramp” for criminals to access these digital riches.
O’Brien cites the threat to government-directed monetary policy as the second argument for prohibiting cryptocurrencies. When it comes to protecting citizens’ savings from currency depreciation, while Bitcoin and Ethereum can be helpful, cryptocurrencies put the power of monetary policy in the hands of governments and central banks, making it more difficult for them to address the underlying issue’s causing the depreciation. Turkey’s prohibition on crypto transactions and India’s proposed limitations both cited these two grounds. There isn’t much data to suggest that these strategies are effective. Since cryptocurrencies are decentralized, it’s impossible to put an outright prohibition in place. According to O’Brien, doing so would necessitate internet censorship that only a tiny minority of people would accept.
Countries that have Banned Crypto:
Turkey
Turkey’s central bank has placed a prohibition on the use of cryptocurrencies in payment transactions. As a result of tighter regulations on bitcoin exchanges in recent months, this decision was not unexpected. The absence of law and centralized authority over the coins is the basis for the prohibition in Turkey. They see this as a danger to investors who will be unable to recoup any losses.
China
There was a time when the majority of Bitcoin miners resided in China. A report by CryptDailyUse says that we made China’s decision to prohibit cryptocurrency in favor of decreasing energy prices and greenhouse fuel emissions linked with crypto transactions, although this remains uncertain.
Bangladesh
Bangladesh’s central bank forbids crypto trading because it’s a violation of the country’s financial laws. In Bangladesh, it is illegal to trade in decentralized currencies like cryptos, such as foreign currencies. According to a study by Ccoingossip, crypto traders who breach the law face years in prison.
Russia
In September of last year, the Russian central bank stated that we opposed the regulation of cryptocurrencies as legitimate forms of currency. Russian authorities have shut down cryptocurrency exchanges and marketplaces. However, Russia may change its mind about trading cryptocurrencies shortly.
Egypt
Cryptocurrency transactions are illegal in Egypt because of the country’s Islamic constitution. According to Egypt’s Dar al-Ifta Islamic advisory group, cryptocurrencies might negatively affect Egypt’s national security and economic well-being.
India
Anti-crypto regulations have yet to be passed by the Indian government. However, the Indian parliament will shortly consider a draught measure that would prohibit the use of private cryptocurrencies. For one thing, they believe bitcoins are to finance criminal activity.
Nigeria
In February 2021, Nigeria tightened its grip on cryptocurrencies. Since 2017, banks and financial organizations cannot provide onramp or off-ramp crypto services in Africa’s most significant cryptocurrency market. Aside from that, the statement implied that any banks utilizing bitcoin exchanges would be closed down.
Bolivia
Bolivia’s In 2014, the Bolivian central bank imposed a blanket ban on all forms of decentralized cryptocurrency. However, it established allowances to permit individuals who were deemed necessary by the administration. It made this decision to safeguard the national currency as well as investors’ interests.
Ecuador
Later in 2014, Ecuador followed Bolivia’s lead and outlawed decentralized currencies altogether. According to National Assembly legislation, payments can now be made with “electronic money,” although coins not issued by the government are still illegal.
South Korea
In South Korea, cryptocurrencies are legal, and the country is home to several significant participants in the industry. While this is true, in 2021, the nation will prohibit Zcash (ZEC) and monero (XMR) as privacy currencies (XMR). The country’s government has ordered all crypto exchanges to remove the currencies from their platforms as of the 21st of March. Syndicates of cybercriminals and money launderers are to blame for the ban’s implementation. Since privacy coins enable anonymity to a large extent, the South Korean government views them as a burden on law enforcement.