Bitcoin

Will Governments Ban Bitcoin?

The famous cryptocurrency bitcoin is known to be controversial since its invention in 2008 by Satoshi Nakamoto. Bitcoin is a decentralized digital currency that has a highly volatile nature and market cap in the global era. However, some investors believe bitcoin to be the future of investment due to its useful applications, and some consider it a way of losing money through scams and not a dependable source of investment.

Bitcoin is criticized highly due to its extremely fluctuating rate that can make or break profits for big firms and investors. Not only this, bitcoin is mined using a high amount of electrical power which gives another reason for the controversy among people. The digital asset is viewed as a safe harbor during economic times by some people majorly in developing countries. But as more and more people are entering into the bitcoin era and the world of investment, the criticisms are becoming an array of restrictions on the cryptocurrency applications and their usage.

The usage and legality of this cryptocurrency differ substantially from country to country, where some areas have made the usage of bitcoin and other altcoins legal while in some areas, the government has banned or is planning to ban the same. On the other hand, some countries don’t consider using bitcoin itself as illegal as its status as a payment method varies with different regulatory senses. There can be some limitations in bitcoin usage in areas where the banks are banning customers from making crypto transactions, while some countries have completely banned the currency with heavy penalties for anyone making transactions illegally. If you are interested in crypto trading or investment you need to know all the crypto basics.

COUNTRIES WHERE THE GOVERNMENT HAS BANNED, IMPLEMENTED LIMITATIONS, OR IS PLANNING TO BAN BITCOIN AND ALTCOINS

1. BOLIVIA – The country banned bitcoin in 2014 when the central bank implemented a resolution for banning the currencies which are not regulated by a country or economy including bitcoins and altcoins.

2. CHINA – The deputy director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC) warned people to protect their pockets from crypto, stating it as a speculative asset as China always has an up-down relation with the asset. PBoC is however planning to develop its own digital currency in order to monitor people’s transactions more closely. On September 24, the firm banned cryptocurrency and its transactions completely in the country.

3. INDIA – The country is becoming more antagonistic towards the currency. The government announced the introduction of a new bill to the parliament that would formulate a central bank-backed digital currency and bans all the rest of cryptocurrencies completely due to its consideration as criminalizing mining and trading.

4. RUSSIA – Russia tends to have an ongoing conflict with the asset. The country passed the first crypto regulations laws in July 2020 making crypto as property liable to taxation. Come into action in January 2021, the law banned Russian civil servants from owning the coins. President Vladimir Putin repeatedly stated crypto with a form of criminal trading and called for closer attention to cross-border crypto transactions.

5. IRAQ – The asset is becoming popular among the citizens of Iraq despite government efforts to block its usage. The central bank of Iraq has been hostile towards crypto and issued a statement in 2017 mentioning the prohibition of crypto. The Ministry of Interior of the Kurdistan regional government initiated a similar statement to eliminate money brokerages and crypto-handling exchanges.

6. INDONESIA – The country’s central bank also implemented new regulations banning the use of crypto as a form of payment, being implemented on 1 January 2018.  

7. KOSOVO – The government announced a ban on crypto mining due to the rise in energy crises. However, the holding and trading of the asset are not yet prohibited in the area. Kosova faces power shortages and cuts since its independence in 2008, which makes crypto mining difficult in the country. In order to preserve energy, Economy Minister Atrane Rizvanolli put a long-term ban on mining. 8. EGYPT – In 2018, the primary Islamic advisory body of Egypt, Dar al-Ifta stated bitcoin as “haram” and prohibited under Islamic law by implementing a religious decree. In September 2020, the banking laws were revised, and decided not to perform trading or promote cryptos without a license from the central bank.

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