As popular as bitcoin is, many countries have put a ban on bitcoin. The rules and regulations of each country and their relation to bitcoin, of course, differ substantially. In the majority of countries, it is not regarded as illegal, but this is constantly changing.
Algeria:
Algeria passed a law in 2018 prohibiting the use of cryptocurrency. The law states that the possession of cryptocurrency is illegal and, even more so, the action of buying or selling the currency.
Bolivia:
Since 2014 Bolivia has completely put a ban on bitcoin. The Bolivian Central Bank has made the usage of bitcoin illegal along with any other currency that is not under the regulation of a country.
China:
China has put a ban on bitcoin in a very intensive manner. By warning their people to steer far away from the digital asset market and have imposed severe restrictions on mining in the nation and money transactions in China and elsewhere.
The Deputy Director of the Financial Consumer Rights of PBoC, Yin Youping, warned the public to “protect their pockets.” They are looking to be one of the major central banks worldwide to introduce their own digital currency. By making their own currency, they will have the ability to monitor the users’ transactions.
On the 24th of September, the PBoC altogether banned cryptocurrency in the country.
Colombia:
Columbia has put a ban on financial institutions allowing bitcoin transactions. They were warned in 2014 that they should not in any way “protect, invest, broker or manage virtual money operations.”
Egypt:
Egypt’s Dar al-Ifta put out a law in 2018 calling bitcoin “haram.” The definition of “haram” is something that is prohibited by the laws of Islam. In 2020 the rules got more defined, preventing trading or having anything to do with digital assets without a Central Bank license.
Indonesia:
Bank Indonesia, the country’s central bank, established new laws on January 1, 2018. They prohibited the use of cryptocurrencies, including Bitcoin, as a form of payment.
Iran:
Iran has put its efforts into the profitable business of Bitcoin mining. While the Central Bank is against the trade of cryptocurrencies created in other countries, it has been pro Bitcoin mining in the nation as an incentive.
Bitcoin mining in Iran has reached 4.5 percent, and according to studies, their revenues are over $1 billion.
Iran has supplied cheap energy to miners with a license for the crypto business to thrive. All mined cryptos must be sold to the Central Bank. Unlicensed mining drains more than 2GW from the national grid every day, producing power shortages.
Iran put a four-month ban on bitcoin until September 22nd.
India:
India’s stance toward cryptocurrency is worsening. On November 23, the government declared its intention to propose a new bill to the Indian parliament to create a new central bank-backed digital currency while also banning essentially all other cryptocurrencies.
The prime minister of India, Narendra Modi, mentioned that he is taking precautions so crypto “doesn’t end up in wrong hands.”
Iraq:
The efforts of the country to ban the use of bitcoin did not help. Cryptocurrencies are slowly becoming more popular in Iraq. The Iraqi Central Bank has been against cryptocurrencies, issuing a declaration barring their usage in 2017 that is still in effect today.
Kosovo:
The government of Kosovo banned crypto mining in January; however, they have not yet prohibited the trading or holding of digital assets. Kosovo is experiencing power shortages, and to conserve energy Economy Minister Atrane Rizvanolli has banned crypto mining in the country altogether. In addition, police have been on duty locating and banning mining around the country.
Nepal:
As of August 2017, Nepal Rastra Bank banned bitcoin.
North Macedonia:
The one European country that has banned cryptocurrency is North Macedonia. They have prohibited Bitcoin, Ethereum, and many more currencies.
Russia:
While there is no law considering bitcoin illegal, it was not a free for all. As the conflict began between Russia and Ukraine, it has become a savior helping many and the country itself.
They passed one law in July 2020 regulating crypto; however, it bans the country’s civil servants from owning these assets. Russian President Vladimir Putin has consistently associated bitcoin with criminal behavior, urging an extra focus on cross-border cryptocurrency transactions.
In July, the prosecutor general proposed new laws allowing authorities to confiscate cryptos that have been illegally obtained.
Turkey:
As the Turkish Lira fell in value, many citizens turned to cryptocurrency. They have the highest percentage of cryptocurrencies used worldwide. The Central Bank of the Republic of Turkey published a decree prohibiting the usage of cryptocurrencies, including Bitcoin, on April 16, 2021. The next day, Turkish President Recep Tayyip Erdogan took this a step further, issuing a decree adding crypto exchanges to a list of organizations subject to anti-money laundering and terrorism funding regulations.
Vietnam:
The State Bank of Vietnam said that the supply, issue, and use of Bitcoin and other cryptos as a form of payment is prohibited and punishable by fines ranging from 150 million VND (€5,600) to 200 million VND (€7,445).
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