Most governments continually seek to find common ground when it comes to regulating cryptocurrencies, but some have banned the use of cryptocurrencies.
Since its creation in 2009, bitcoin has always been surrounded by controversy. And so it is with all the other cryptocurrencies that have followed suit. From uncertain presidents to pessimistic senators, the list of bitcoin critics continues to grow. But, while some decry its volatile nature, others worry about its potential for use by bad actors, as well as the negative impact of its mining on the environment. This is why governments have tried to put in place cryptocurrency regulations to, at least, limit the use of cryptocurrencies for criminal purposes.
However, for other countries, restrictive regulation is simply not enough. These countries have banned the use of bitcoin and cryptocurrencies. More so, they have put in place heavy penalties for anyone caught transacting in cryptocurrencies.
The first 5 countries on the list
Below is our list of the 5 countries with the strictest cryptocurrency regulations. They have a rigid relationship with crypto and are very clear about their position.
In September 2021, China took the world by surprise when its central bank – the People’s Bank of China PBoC, indicated its determination to rid the country of all forms of crypto mining and trading activities. The PBoC issued a statement, stating that “all transactions related to cryptocurrencies, including services provided by offshore exchanges to domestic residents, are illicit financial activities.“The country also sprang into action, almost immediately, and began cracking down on the cryptocurrency mining industry by shutting down all mining farms.
It is currently against the law to conduct crypto transactions in Algeria. The Algerian government passed a law in 2018, which prohibits the purchase, sale, use or simply possession of cryptocurrencies. In fact, breaking the law is a criminal offense that is punishable up to and including jail time.
Bolivia is one of the first countries to completely ban the use of bitcoin. The Bolivian government banned bitcoin and other cryptocurrencies in 2014, saying they could not be trusted as an investment.
Vietnam’s cryptocurrency regulations might seem a bit tricky. Indeed, the government doesn’t exactly have anything against trading bitcoins or holding them as assets. Nevertheless, the State Bank of Vietnam claims that it is illegal to use bitcoin and other cryptocurrencies for payments. And failure to comply with this rule can lead to fines of up to 200 million VND.
The last country on our list is Egypt. In 2018, an Islamic body known as Dar al-Ifta, issued a religious law against bitcoin, saying its use is “haraam“. Although the law didn’t exactly gain a foothold at the time, Egypt’s banking laws in 2020 may reflect that. By September 2020, bitcoin transactions will no longer be able to take place without a license from the Central Bank.
Many more on the list…
Meanwhile, it should be noted that there is a long list of countries that have strained relations with cryptocurrencies. As reported by the Library of Congress (LOC) in November 2021, approximately 103 countries have instructed their financial regulators to develop protective cryptocurrency regulations. However, these regulations may not be as strict as those mentioned earlier in this article.
Other countries with not as strict cryptocurrency regulations include Bahrain, Gabon, Georgia, Burundi, Maldives, Cameroon, Central African Republic, etc.
So, if you are looking to know whether or not you can use bitcoins, it just depends on the country you are in.
Read also : The surprising top 5 most crypto-friendly countries in the world
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