List of countries that ban the circulation and trading of digital currency

The legal status of cryptocurrencies remains a controversial topic in many countries.

Most of the cryptocurrency bans have occurred during periods of strong price increases in the cryptocurrency market, typically in 2017-2018 and 2020-2021. According to a survey by the US Law Library of Congress (LLC), there are 51 countries that have imposed bans on digital currencies, of which 9 countries have “absolute bans” and the remaining 42 countries have “implicit bans”. Implicit bans are a form in which authorities do not allow banks and traditional financial institutions to trade digital currencies.

Here are the countries that “say no” to this currency:

Algeria:In 2018, the Algerian government enacted a law banning all activities related to so-called “virtual currencies”. The law stipulates that digital currencies cannot be replaced or converted at the same value as paper and/or fiat money. At this point, Algeria has completely banned the use of cryptocurrencies. Individuals who buy, sell, or use cryptocurrencies will be punished according to financial law.

China:China has been taking various measures to restrict the use of digital currencies since 2013. But for a long time, China was a fertile ground for digital currency mining. In September 2021, the Chinese government decided to completely ban cryptocurrency mining and trading.

The new order bans all cryptocurrency-related activities. As a result, many major Chinese exchanges have moved to other countries, while global exchanges have announced that they will no longer provide services to Chinese citizens. Miners in the country have also had to redistribute their mining capacity. This drastic measure has made Kazakhstan the second-largest cryptocurrency mining center in the world after the United States.

Many experts believe that this new move is aimed at promoting the issuance and circulation of the digital currency issued by the Chinese state. The People's Bank of China (PBoC) is considered one of the pioneers in issuing digital currencies, specifically the digital yuan (CBDC). This currency has ended its testing phase and is expected to be circulated more widely in 2022.

Nepal:Nepal has an outright ban on the use of cryptocurrencies within its borders. The Central Bank of Nepal (Rastra Bank) declared Bitcoin illegal in 2017. As of 2019, mining and trading of cryptocurrencies are prohibited in Nepal, based on the country’s Foreign Exchange Act.
Nepal is also open to the possibility of issuing its own digital currency, which may be why some cryptocurrencies like Bitcoin or Ethereum are banned in the country.

Egypt:Egypt considers cryptocurrency trading illegal under Islamic law. A 2018 sharia decree labeled cryptocurrencies a national security risk because they could harm the economy. A revised banking law enacted in September 2020 tightened the rules, with provisions prohibiting the promotion and trading of cryptocurrencies. But the law is more of a guideline than a requirement.

Cryptocurrencies are not completely banned and laws do not prevent Egyptians from buying and using them. Many exchanges still provide services to customers residing in Egypt. With an account, users can still buy and sell coins, bitcoin, ethereum and many other cryptocurrencies.

Türkiye:Türkiye is a major cryptocurrency market with many domestic exchanges. But the government has not been keen on this trend. In April 2021, the government issued a regulation banning the use of cryptocurrencies as a means of payment. President Recep Tayyip Erdogan then issued a decree requiring exchanges to comply with anti-money laundering regulations.

Bangladesh: Currently, digital currencies are banned in Bangladesh, as the authorities consider digital currencies to be potentially risky. In September 2014, the Central Bank of Bangladesh issued a regulation imposing prison sentences on those who trade in digital currencies, based on anti-money laundering laws.

Iran: In 2018, the Central Bank of Iran issued a statement banning banks and financial institutions from dealing with cryptocurrencies. However, the government also recognized that cryptocurrency mining is legal. The Central Bank of Iran even encouraged the mining industry in the country by offering preferential electricity and energy prices to miners. However, in 2021, Iran also issued a temporary 4-month ban on cryptocurrency mining due to the emergence of unlicensed miners, wasting and wasting electricity.

According to Tin Tuc newspaper