One of the innovations trending globally is the creation of digital currencies, such as Bitcoin (BTC), Ethereum (ETH), and lots more. In most parts of the world, these virtual assets are warmly accepted for different crypto activities. However, several countries have not seen the reasons for their acceptance, thereby imposing bans on their use.
There are reasons for the ban imposition. These may include how the decentralized currencies could threaten their financial system or because no regulations have been implemented. In this article, we’ll explore the countries where Bitcoin is banned and where its use is legally restricted.
Countries that banned Bitcoin in 2022
Below are countries that made a firm decision prohibiting the use of Bitcoin
Bitcoin and other digital currencies are banned in Algeria. The main reason for this is due to how virtual currencies have no physical backings.
Cryptocurrencies are strictly banned in Bolivia by the Central Bank. This is because digital currencies are unregulated.
Bitcoin and other virtual currencies are considered illegal in Bangladesh. This is because the Central Bank does not authorize it and has cited the possibility of money laundering.
· Dominican Republic
Cryptocurrencies are illegal in the Dominican Republic since they have been cited as not legal tender.
Ghana is one of the countries that see how blockchain can help their economy and seriously access the means to make it part of their financial structure. But for now, digital currencies are still illegal.
Cryptocurrencies are considered illegal currencies in Nepal by the Central Bank, thereby banning their use as a payment method.
Every activity that involves cryptocurrencies is banned in Qatar. This is due to the possibility of financial crimes, price volatility, and support that the central government has not given.
· The Republic of Macedonia
Due to the associated risks with crypto and how securities cannot be provided abroad for crypto users, the country warms its citizens and consider virtual currencies illegal.
It might have gone viral that Vanuatu is now accepting Bitcoin in exchange for citizenship, which in fact, could be found on different news outlets. But this story was denied by the Citizenship Office of Vanuatu. The country promulgates that the only accepted currency used in exchange for citizenship is USD.
Countries that legally restrict the use of Bitcoin in 2022
We’ve mentioned the countries that banned Bitcoin in 2022; now, let’s explore countries where the use of Bitcoin for payment or trading is legally restricted. In these countries, financial institutions and other providers of financial services are prohibited from engaging in crypto businesses, and even crypto exchanges have been banned completely.
Nevertheless, it should be noted that despite the restrictions and bans, Bitcoin or other digital currencies have not been eradicated by the laws for trading and usage. This is because it is obviously impossible to ban decentralized currencies. In these countries, numerous people still visit sites such as Paxful, Local Bitcoins, or Bisq for businesses, as shown by the volumes of trading on the platforms.
Without much ado, let’s discuss these countries where the use of Bitcoin is legally restricted in 2022:
In Bahrain, no one is allowed to use virtual currency services without a license.
China has been looking into digital currencies for years but has remained cautious of the market. This led to the list of rules made to restrict Initial Coin Offerings (ICOs). Even though China could operate a high percentage of Bitcoin mining facilities, officials have regulated such action for environmental reasons.
· Hong Kong
There are different regulations put in place by Hong Kong for ICOs and exchanges. In fact, individuals with more than $1 million as an investment may be restricted from trading crypto by a yet-to-be-enacted law.
In Iran, any financial institutions legally recognized by the government are under a restriction on handling digital currencies.
The National Bank of Kazakhstan places heavy restrictions on virtual currencies and declared their mining and exchanges banned. In fact, there is a contemplation on a general ban on cryptos in the country.
Although cryptocurrencies have legal backings in Russia, they are under restrictions. The Central Bank must register banks and exchanges before operating, and cryptos cannot be a payment option.
· Saudi Arabia
Although the ban on Bitcoin that stopped it from being legal in Saudi Arabia has been lifted, financial institutions are not permitted to engage in any activity that involves it.
Banks do not consider cryptos as financial assets in Turkey, so they are unacceptable. Also, Bitcoin and other virtual currencies cannot be used as payment methods.
The State Bank prohibits Bitcoin in trade relations, but for average users, trading cryptos can still be tolerated. Researchers are still working in the country for a better understanding of digital currencies and the implications they may have.
You must know what side your country takes before thinking about investing in digital currencies. In some countries, you may end up in prison if you’re guilty of possessing this digital asset. Countries that ban or restrict cryptocurrency have genuine reasons for doing so, but there is always room for reconsideration later in the future to make it legal.