Several countries have outright banned cryptocurrencies, and many more have issued warnings against their use. While the reasons for doing so vary from country to country, the overall trend is clear – governments are increasingly concerned about the implications of cryptocurrency and blockchain technology.
Here, we will explore some countries that have taken a hard line against crypto and why they might be so worried.
Egypt Egypt is not the first country to ban cryptocurrency, but it remains one of the most influential countries in the Middle East. President Abdel Fattah el-Sisi decided on December 18th, 2017, with a legislative push from Egypt’s Central Bank.
President Sisi cited that these transactions are too difficult to regulate due to their anonymous nature and have been used for illegitimate purposes such as money laundering, tax evasion, funding terrorism and trading drugs.
This decision has caused some entrepreneurs who believe this will stifle innovation in an already struggling economy.
Russia Russia has blocked access to websites that sell or trade cryptocurrencies, and the Russian Ministry of Finance was looking to propose a bill to criminalize using them. The bill would impose fines on those who use cryptocurrency for transactions, as well as those who issue it.
This comes after President Putin said that Russia should avoid "the legalization of crypto-currencies." China's central bank has implemented a similar prohibition, and the country's top internet regulator - both institutions have since reiterated their positions against cryptocurrencies.
Bangladesh As of March 13th, 2018, the central bank of Bangladesh released a statement announcing that it does not allow any form of cryptocurrency trading within its borders. This announcement comes as a bit of a surprise, as other countries in the region are beginning to open up to cryptocurrencies. It's unclear why Bangladesh has taken this stance against digital currencies, but it is likely due to their prices' speculative and volatile nature.
Despite this news, there is still a growing interest in crypto-trading throughout South Asia, so seeing how things play out in this rapidly developing region will be interesting.
China China has always been a mystery. When Bitcoin was being popularized, there were stories of people in China making money through mining and trading bitcoin. Now the Chinese government is cracking down on it with its current set of regulations.
The country that once had the world's largest number of Bitcoin miners, according to Bloomberg News (Feb 2018), now has banned cryptocurrency as part of its new policy against illegal fundraising activities. The latest ban followed other bans on digital currency exchanges and initial coin offerings by authorities.
Morocco The Moroccan government has classified virtual currencies as an infringement in a recent move. This means that those who engage in transactions using digital currencies such as Bitcoin will be punished. The government has not released a statement detailing the punishments, but violators could likely face fines or even imprisonment.
This announcement from Morocco comes on the heels of similar decisions by other governments worldwide, which are largely motivated by a desire to protect consumers and prevent money laundering. While some people may view this news as a setback for the growing cryptocurrency industry, others see it as a sign that authorities take virtual currencies seriously and prepare to enforce regulations.
Final Word Countries have taken a hard line against cryptos for many reasons. Some fear that they will be used to fund terrorism, others are worried about the potential loss of jobs in the financial sector, yet other countries believe these currencies could destabilize their economies.
In any case, it’s important to remember that regulations can change quickly, so always stay up-to-date on what is happening with crypto around the world and start investing today using https://bitcoin-buyer.io/.
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