It’s been 10 years since first cryptocurrency Bitcoin was born and still, cryptocurrencies developing and bringing revolutionary changes in humans life.
Cryptocurrencies are here because of making our life easier faster and eliminate dependency on third parties in our daily life.
Also, cryptocurrencies have their own Advantages and Disadvantages.
Beside of all those merits and demerits, some nations in the world fully banned cryptocurrency usage in their territory.
Here some countries Banned Cryptocurrencies…
In 2017 Renminbi(Chinese Yuan)-to-Bitcoin trades made up over 90 percent. That makes China becomes the world’s largest Bitcoin trading market.
But these huge transactions made banking system unnerve that’s why The People’s Bank Of China and several banks lead to banning cryptocurrency transactions using fiat money.
This action leads to 88 exchanges and 85 initial coin offerings (ICOs) have ceased operations since.
Also, there is a misconception that bitcoin and digital currency are totally banned and illegal in China, but it’s not, only banking institutions and employees are banned from engaging in bitcoin business through banking, as well as servicing or doing business with the bitcoin industry.
But trading or mining in bitcoin is not illegal for common citizens.
Now, all of the world’s major players are no longer in China – all forced to seek new homes across Europe and the Americas.
If you make any bitcoin or any altcoin transactions that could lead you to a punishment of up to 12 years in prison.
According to their Foreign Exchange Regulation Act, 1947, Anti Terrorism Act 2009 and Money Laundering Prevention Act, 2012, bitcoin is decentral payment system which could lead to people being “financially harmed”.
Also, you can look out below statement of Central Bank of Bangladesh towards cryptocurrency regulations.
The ban comes as an enforcement of sections 4,5 and 8 of the 1947 law that regulates trading in foreign currency without authorization or general permission from the central bank.
Section 5 severely restricts payments did outside Bangladesh, which affect bitcoin payments.
In 2018 a committee consisting of the Capital Market Authority (CMA), Ministry of Ministry of Interior membership, Ministry of Media, Ministry of Commerce and Investment and Saudi Arabian Monetary Authority (SAMA), released this statement about cryptocurrency regulations.
Basically committee state that cryptocurrencies are having negative consequences and high risks on the traders and they are out of government supervision.
So committee says that there are no parties in the Kingdom that are licensed to trade virtual currencies such as Bitcoin and warns all their citizens and residents of trying to chase after them and other “get-rich schemes”.
However, Saudi Arabia seems to be banning cryptocurrencies but blockchain technology itself has been adopted rapidly in Saudia Arabia.
Ripple and the and Saudi Arabian Monetary Authority (SAMA) offered a pilot program for Saudi banks. By doing so, Saudi Arabian banks are hoping to improve their payment infrastructure using Ripples payment system.
In 2014 Bolivian central bank El Banco Central de Bolivia say that citizens are prohibited from denominating prices in any currency that is not previously approved by its national institutions.
It is illegal to use any kind of currency that is not issued and controlled by a government or an authorized entity.
The bank believes that the ban is necessary to protect the boliviano, the country’s national currency, and to safeguard users from the kind of uncontrolled currencies that can lead to the users losing their money.
In 2014 the Central Bank of Iceland issued a statement explaining the legal status of digital currency in Iceland.
Statement state that the digital currencies are not compatible with the country’s Foreign Exchange Act and Iceland seek to protect against the outflow of Icelandic currency from the country.
But the country has seen a new cryptocurrency called Auroracoin. Its founders wanted to create a viable alternative to the present Icelandic banking system.
According to the news reports The Bank of Thailand issued a circular asking “financial institutions not to get involved in cryptocurrency transactions for fear of possible problems from the unregulated trading.”
Thailand main reason for banning cryptocurrencies is that they may be used in illegal activities such as money laundering or supporting terrorism.
But recently, the Thai government announced that it will not ban cryptocurrencies and is developing a regulatory framework for them.
On January 1, 2018, Shawki Allam, the current Grand Mufti of Egypt, said that cryptocurrency trading is forbidden under Islamic religious law due to the risk associated with the activity.
Apart from its trading volatility, Shawki Allam also cited bitcoin’s anonymity as a cause for concern, saying it can undermine the legal system by enabling tax evasion, money laundering, fraudulent activities, and terrorist financing.
But Egypt is still at a nascent stage of the cryptocurrency market, comments from Allam are similar to comments made by secular government bodies.
Back in February of 2014, Vietnam banned the virtual currency bitcoin for use by credit institutions, the reason is that cryptocurrencies use for criminal purposes and its high risk for investors.
But in 2018 Vietnam saw state officials request that businesses suspend any crypto related activity until a regulatory framework is established.
They have also issued a warning to potential cryptocurrency investors, using a lack a regulation as a risk factor that needs to be taken into consideration.
This seems to be now they want to streamline and monitor the industry.
Ecuador South-American country facing financial inequality and fiscal problems related to government spendings.
So they are building a national electronic cash system. The purpose of electronic money is to benefit the poor and save more than three million per year in the cost of exchanging deteriorating notes for new ones.
They feel the need to protect their new currency from something clearly superior.
A decentralized currency of finite production that cannot be manipulated by governments or banks might dim the lights on their new program in the eyes of the public, which offers none of those benefits.
On 31 December 2013, Financial Supervisory Commission (FSC) and CBC issued a joint statement. It is stated that bitcoins remains highly volatile, highly speculative, and is not entitled to legal claims or guarantee of conversion.
After that in November 2015, The Chairman of the Financial Supervisory Commission (FSC) has declared Bitcoin to be illegal in Taiwan, because of recent high-profile kidnapping accident involving ransom demands made in Bitcoin.
Despite ban many people in Taiwan trade cryptocurrencies anonymously on exchange platforms, to solve this problem now country’s FSC has the power to crack down on anonymous crypto transactions.
On April 2018, Reserve Bank of India ask for banks to stop dealing with cryptocurrencies, the reason behind this decision was to improve efficiency and inclusiveness of the financial system and also considering consumer protection.
But some Indian exchanges questioned this move taken by Reserve Bank in Supreme Court, but court upholds RBI ban on cryptocurrencies.
Effect of this ban is one of Indian biggest crypto exchange Zebpay closes their activity in September 2018.
But still, RBI formed a committee to provide guidance on the desirability and feasibility to introduce new central bank cryptocurrency. The report will be submitted by committee soon.
On November 2016, the Federal Tax Service of Russia declared that bitcoin is “not legal”.
In September 2017 Russia central bank head Elvira Nabiullina has said it is categorically against regulating cryptocurrencies as money.
Deputy Finance Minister of the Russian Federation Alexei Moiseev at the same time said it’s “probably illegal” to accept cryptocurrencies payments.
However, bitcoin market sites are blocked and in court decisions stated that bitcoin is a currency substitute which is outlawed on the territory of the Russian Federation.
Above are some countries banned bitcoin and altcoins in their territory if you want a full list of banned countries you can click here.
If you noticed most above countries are not fully banned cryptocurrencies, only banking ban is their because banks always do not agree with a decentralized currency system, these type of countries are interested about Blockchain technology rather than the cryptocurrency.
That’s why there is always hope to see cryptocurrencies are making life easier and better to humans.
After some time and technology growth, many countries should be allowing cryptocurrency transactions, what you say do let me know in comments.