Countries around the world are showing ambivalence about digital currencies and Bitcoin in particular. Western superpowers like the United States and Great Britain are positive about the new technology. Some countries, such as Canada and Australia, are still debating what to do with Bitcoin and whether it is worth doing anything. And a number of other countries have already decided against digital currencies. We present you with a list of ten countries in which the use of Bitcoin is most problematic.
The reasons for banning cryptocurrencies in these countries are very different, from fear and misunderstanding of the principles of work to currency protectionism and the intention to create their own virtual currency. There are ten countries on the list, however this may soon change as many countries have not yet made an official decision on digital currencies.
Bangladesh
In an official statement, the Central Bank of Bangladesh expressed concern about "the lack of a central payment system in the Bitcoin mechanism." This, according to the regulator, can lead to financial damage to people. The Central Bank of Bangladesh refers to the Currency Control Law of 1947 and the 2012 Anti-Money Laundering Law. In Bangladesh, trading Bitcoin and other digital currencies can result in up to 12 years in prison.
Bolivia
In a statement, the Central Bank of Bolivia (El Banco Central de Bolivia) said: "It is illegal to use any currency that is not issued or controlled by the government or an authorized body." First of all, this applies to Bitcoin.
China
It is a common misconception that Bitcoin and other digital currencies are completely banned in China, but that the country has become the world's largest Bitcoin trading market. The ban on Bitcoin applies strictly to banks. Banking institutions and their employees are prohibited from participating in the Bitcoin business through the banking system, as well as serving or cooperating with representatives of the Bitcoin industry. Cryptocurrency trading and mining is not prohibited in China for ordinary citizens.
Ecuador
The ban on Bitcoin in this country is due to the creation of a national electronic money system. Thus, the authorities feel the need to protect their product from something that clearly has an advantage. Decentralized currency, which the government and banks cannot manage, could make a new government program look bad for the public, because it does not offer any advantages.
Iceland
Last March, Iceland's central bank issued a statement explaining the legal status of the digital currency in the country. Buying Bitcoin and other cryptocurrencies may violate the “Currency Law”, according to which Icelandic currency cannot leave the country. A vague statement, in essence, but sounds like a ban on digital currency trading.
India
BTCXIndia was the first Bitcoin exchange designed and built in India. Allowing deposits and transfers in Indian rupees, BTCXIndia was forced to close at one point because their partner bank refused to serve the Bitcoin business. It is not completely known whether the reason was the alleged risk or a simple ban on the part of the leadership, but the situation quickly spread throughout the country.
Russia
Despite a recent court ruling to unblock sites linked to Bitcoin and other digital currencies, Bitcoin is banned in practice in Russia. Due to the fall of the ruble, banks and the government disapprove of anyone who wants to invest in other financial instruments, digital or non-digital.
Sweden
Literally this month, Sweden passed a small ban on Bitcoin - it was forbidden to use digital currency to buy scrap and waste. This may mean that the state intends to ban Bitcoin in other areas, but so far the veto only applies to this industry.
Thailand
The Bank of Thailand ruled Bitcoin illegal in July 2013. However, the regulator explained that "the use of Bitcoin was declared illegal due to the lack of relevant laws." Companies working with Bitcoin were later able to conduct their business and even obtain a license, but the ban is still officially in force in the country.
Vietnam
In February 2021, Vietnam banned the virtual currency Bitcoin, citing the potential use of the currency by criminals and the high risks for investors. "Bitcoin transactions are confidential, so the currency can become a tool for money laundering, drug trafficking, illegal payments and tax evasion," - said the Central Bank of Vietnam.
Prohibiting what cannot be controlled is common to most countries in the world. However, many experts believe that the central bank and the government should give citizens a choice, especially when it comes to the preferred means of payment or investment.
The reasons for banning cryptocurrencies in these countries are very different, from fear and misunderstanding of the principles of work to currency protectionism and the intention to create their own virtual currency. There are ten countries on the list, however this may soon change as many countries have not yet made an official decision on digital currencies.
Bangladesh
In an official statement, the Central Bank of Bangladesh expressed concern about "the lack of a central payment system in the Bitcoin mechanism." This, according to the regulator, can lead to financial damage to people. The Central Bank of Bangladesh refers to the Currency Control Law of 1947 and the 2012 Anti-Money Laundering Law. In Bangladesh, trading Bitcoin and other digital currencies can result in up to 12 years in prison.
Bolivia
In a statement, the Central Bank of Bolivia (El Banco Central de Bolivia) said: "It is illegal to use any currency that is not issued or controlled by the government or an authorized body." First of all, this applies to Bitcoin.
China
It is a common misconception that Bitcoin and other digital currencies are completely banned in China, but that the country has become the world's largest Bitcoin trading market. The ban on Bitcoin applies strictly to banks. Banking institutions and their employees are prohibited from participating in the Bitcoin business through the banking system, as well as serving or cooperating with representatives of the Bitcoin industry. Cryptocurrency trading and mining is not prohibited in China for ordinary citizens.
Ecuador
The ban on Bitcoin in this country is due to the creation of a national electronic money system. Thus, the authorities feel the need to protect their product from something that clearly has an advantage. Decentralized currency, which the government and banks cannot manage, could make a new government program look bad for the public, because it does not offer any advantages.
Iceland
Last March, Iceland's central bank issued a statement explaining the legal status of the digital currency in the country. Buying Bitcoin and other cryptocurrencies may violate the “Currency Law”, according to which Icelandic currency cannot leave the country. A vague statement, in essence, but sounds like a ban on digital currency trading.
India
BTCXIndia was the first Bitcoin exchange designed and built in India. Allowing deposits and transfers in Indian rupees, BTCXIndia was forced to close at one point because their partner bank refused to serve the Bitcoin business. It is not completely known whether the reason was the alleged risk or a simple ban on the part of the leadership, but the situation quickly spread throughout the country.
Russia
Despite a recent court ruling to unblock sites linked to Bitcoin and other digital currencies, Bitcoin is banned in practice in Russia. Due to the fall of the ruble, banks and the government disapprove of anyone who wants to invest in other financial instruments, digital or non-digital.
Sweden
Literally this month, Sweden passed a small ban on Bitcoin - it was forbidden to use digital currency to buy scrap and waste. This may mean that the state intends to ban Bitcoin in other areas, but so far the veto only applies to this industry.
Thailand
The Bank of Thailand ruled Bitcoin illegal in July 2013. However, the regulator explained that "the use of Bitcoin was declared illegal due to the lack of relevant laws." Companies working with Bitcoin were later able to conduct their business and even obtain a license, but the ban is still officially in force in the country.
Vietnam
In February 2021, Vietnam banned the virtual currency Bitcoin, citing the potential use of the currency by criminals and the high risks for investors. "Bitcoin transactions are confidential, so the currency can become a tool for money laundering, drug trafficking, illegal payments and tax evasion," - said the Central Bank of Vietnam.
Prohibiting what cannot be controlled is common to most countries in the world. However, many experts believe that the central bank and the government should give citizens a choice, especially when it comes to the preferred means of payment or investment.
