Bitcoin has always been controversial since it’s started in 2009, Following major ups and downs in the last decade.
The legal status of Bitcoin and other altcoins varies substantially from country to country. Bitcoin isn’t accepted everywhere yet, so here are some countries to keep an eye on when planning your next trip abroad.
Top 10 Places Where Bitcoin is Banned
Algeria currently prohibits the use of cryptocurrency following the passing of financial law in 2018 that made it illegal to buy, sell, use or hold virtual currencies.
There is a complete ban in place on the usage of Bitcoin in Bolivia since 2014. The Bolivian Central Bank issued a resolution banning it and any other currency not regulated by a country or economic zone.
China has cracked down on cryptocurrencies with increasing intensity throughout 2021. Chinese officials have repeatedly issued warnings to its people to stay clear of the digital asset market and have clamped down hard on mining in the country as well as currency exchanges in China and overseas.
On August 27, Yin Youping, the Deputy Director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC), referred to cryptos as speculative assets and warned people to “protect their pockets”.
Efforts to undermine Bitcoin – a decentralized currency outside the control of governments and institutions – are largely seen as an attempt by the Chinese authorities to float their own e-currency.
The PBoC is looking to be one of the first major central banks in the world to launch its own digital currency, and in doing so would be able to more closely monitor the transactions of its people.
In Colombia, financial institutions are not allowed to facilitate Bitcoin transactions. The Superintendencia Financiera warned financial institutions in 2014 that they may not “protect, invest, broker, or manage virtual money operations”.
Egypt’s Dar al-Ifta, the country’s primary Islamic advisory body, issued a religious decree in 2018, classifying Bitcoin transactions as “haram,” something prohibited under Islamic law. While not binding, Egypt’s banking laws were tightened in September 2020 to prevent trading or promoting cryptos without a Central Bank license.
Bank Indonesia, the country’s central bank, issued new regulations banning the use of cryptocurrencies, including Bitcoin, as a means of payment from 1 January 2018.
Bitcoin has a complex relationship with the Iranian regime. In order to evade the worst impact of crippling economic sanctions, Iran has instead turned to the lucrative practice of Bitcoin mining in order to finance imports.
While the Central Bank prohibits the trading of cryptocurrencies mined overseas, it has encouraged Bitcoin mining in the country with incentives.
Around 4.5 percent of the world’s Bitcoin mining takes place in Iran, which, according to blockchain analytics firm Elliptic, could account for revenues of over $1 billion (€843 million).
In order for the crypto industry to flourish, Iran has offered licensed miners cheap energy but requires all mined cryptos to be sold to the Central Bank.
However, unlicensed mining drains more than 2GW from the national grid every day, causing power shortages.
To this end, Iranian authorities issued a four-month ban on Bitcoin mining until September 22.
The Nepal Rastra Bank declared Bitcoin illegal as of August 2017.
North Macedonia is the only European country so far to have an official ban on cryptocurrencies, such as Bitcoin, Ethereum, and others, in place.
While cryptocurrency isn’t outlawed in Russia, there is an ongoing conflict being waged against its use.
Russia passed its first laws to regulate cryptos in July 2020, which for the first time designated cryptocurrency as property liable to taxation.
The law, which came into force in January this year, also bans Russian civil servants from owning any crypto assets.
Russian President Vladimir Putin has repeatedly linked cryptocurrency with criminal activity, calling for closer attention to cross-border crypto transactions in particular.
In July, the prosecutor general announced new proposed legislation which would allow police to confiscate cryptos deemed to be illegally obtained citing its use in bribery.