11 Countries that Ban Cryptocurrencies recently and their reasons
The government-cryptocurrency relationship has always been contentious. This has led to outright restrictions on purchasing, owning, and trading in several nations.
Bitcoin’s (BTC) bull run coincided with the outright ban on Cryptocurrency in 2017 and 2018. As interest in Cryptocurrency grows, central banks and governments realized that ignoring this expanding industry was no longer an option.
There have been a number of nations that have banned these coins in the past, but others are considering it.
Several countries are banning cryptocurrencies and bitcoin mining because of the cost and power it takes. This is why miners are looking for an alternative way, like the best staking platform, to stake their crypto coins and earn rewards from them.
The specific reason behind the ban on Cryptocurrency is the mining cost, volatility, illegal activities, etc.
1. Reasons Why Turkey bans Crypto
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Recently, the Turkish central bank banned the use of cryptocurrencies for payments. Even while it surprised many, the authorities have been tightening regulations on bitcoin exchanges for months.
The absence of control and a central authority for the coins is the basis for the prohibition in Turkey. It’s a danger for investors who can’t recover their losses, according to them.
Turkey’s ban comes at the time that when bitcoin and Crypto are at the top of their pick, this affects the cryptocurrency market and investors.
2. Reasons Why India Continues to threaten a ban on Crypto
Anti-crypto measures are still pending in India. Indian lawmakers are expected to vote on a draught measure banning private cryptocurrencies shortly. Cryptocurrencies are believed to be used to finance criminal activity, which is one of the reasons.
In spite of this, the government does not oppose all digital currencies. The digital rupee, the central bank’s digital currency, is also under consideration.
3. Reasons Why Nigeria says no to crypto exchanges
The cryptocurrency business in Nigeria was booming until the Federal government put a stop to it. In February 2021, Nigeria’s crypto prohibition will be tightened even more, according to the government. A prohibition on banks and financial institutions selling crypto services has been in place in the largest cryptocurrency market in Africa since 2017.
Aside from that, the statement threatened to cancel any bank accounts that were found to be linked to bitcoin exchanges.
4. Reasons Why Bolivia’s ban on Crypto continues
Earlier this year, the Bolivian central bank outlawed all decentralized cryptocurrencies. A few exceptions have been made, however, such as those formed by the government. In order to preserve the national currency and investors, this rule was passed by the government.
Only Bolivia had an absolute ban on Cryptocurrency at the time, the only South American country to do so.
5. Reasons Why Ecuador Follows Bolivia in Banning Crypto
Ecuador soon followed Bolivia’s lead, banning decentralized currencies outright later that year.
The government modified monetary and financial legislation to enable payments using “electronic money” but barring coinage not regulated by the state in a vote at the National Assembly.
6. Reasons Why Algeria doesn’t support internet money
Algeria banned the usage of Cryptocurrency in 2018. According to a translation of the legislation from Arabic, Cryptocurrency is defined as the term “virtual currency,” which refers to a currency that internet users utilize through the Internet. Money without tangible backing like coins or paper money is called “cashless.”
Those who violate this ban will be punished under the existing financial laws.
7. Reasons Why Crypto = jail in Nepal
The Nepal Rastra Bank outlawed Cryptocurrency in 2017 via a notification.
Seven persons were detained for operating a bitcoin exchange shortly after this notice was published. A fine and even jail time were on the table. The case is still pending.
8. Reasons Why South Korea isn’t interested in privacy coins
South Korea has the most influential players in the bitcoin industry, where cryptocurrencies are legal. However, the nation banned privacy cryptocurrencies like zcash (ZEC) and monero as of January 1, 2021. (XMR). As of March 21, the government has instructed crypto exchanges to delist the currencies.
There are two major reasons for the ban: cybercrime syndicates and money laundering, respectively. Deshalb deems privacy coins an impediment to law enforcement by the South Korean government.
9. Reasons Why Qatar prohibits dealing with Crypto
In 2018, Qatar issued a warning to banks against trading cryptocurrency.
“Do not deal with bitcoin, swap it with another currency, create an account to deal with it, or forward or get any money transfers to purchase or sell it,” warns the Supervision and Control of Financial Institutions Division of Qatar’s Central Bank in a circular. We warned those who were captured of the consequences.
10. Reasons Why Crypto is Prohibited in Egypt
Cryptocurrencies are not explicitly prohibited in Egypt. However, in 2017, an Islamic legislator deemed cryptocurrency transactions haram (prohibited) under Sharia law.
The Dar al-Ifta believes that Cryptocurrency might be harmful to Egypt’s national security and economic health.
11. Reasons Why Bangladesh is against Crypto
Bangladesh has prohibited Cryptocurrency since 2017. In a statement, the central bank advised against the use of bitcoin. These are unlawful, as stated. Trade with an unidentified person may thus violate the Money Laundering Prevention Act.
Citizens were advised to “prevent financial and legal damage by refraining from executing, facilitating, and publicizing any kinds of transactions using virtual currencies like Bitcoin.”
Bans come and go, but Crypto stays
This is not a complete list, and cryptocurrency restrictions are subject to change. There’s a good chance that the legal environment may alter much more as bitcoin’s adoption rises.
Other governments are looking at ways to engage in the future of digital money, even though it appears that certain nations are heading toward more restrictive regulations at the moment. Virtual money issued by a central bank is most often used.
Digital currencies in all their incarnations are unlikely to disappear very soon.
Conclusion:
People from all around the world right now have a large amount of interest in cryptocurrencies. The nature of Crypto is volatile, and more importantly, cryptocurrencies are decentralized, which is why people see Crypto as a future. But cryptocurrencies are costly, and they use an enormous amount of electricity to do mining processes like bitcoin mining. And the decentralization makes a risk of illegal activities, which is why several countries are banning cryptocurrencies or mining. The miners are looking for staking as the best alternative for crypto mining.
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