Due to their differences, the relationship between many governments around the world and cryptocurrencies is in the news. In 2017-2018, Bitcoin experienced its first bullish run. Governments around the globe had seen cryptocurrency’s popularity growing. This is when the current wave of bans on Bitcoin began. Many powerful countries have now banned cryptocurrency trading and Bitcoin, to prevent losing power from the monetary authorities, and to curb illegal activities.
Bolivia is the first country to ban Bitcoin in 2014.
In June 2014, Bolivia’s central bank prohibited all forms of currency not approved by the government. This included Bitcoins and cryptocurrency. Bolivian authorities also prohibited citizens from mentioning prices for any currency other than those approved by the national institutions. To protect investors and the national currency, Bolivia was the only South American nation to ban cryptocurrency at the time. Ecuador followed Bolivia’s lead and implemented a similar ban.
Egypt bans Bitcoin Trading on Religious Grounds
Although Egypt has not banned Bitcoin directly, the Islamic Legislator states that all cryptocurrency transactions are forbidden under Sharia law. The authorities of Egypt consider cryptocurrency to be a threat to the economy and national security.
China’s long history of Tug of War and Bitcoin
The People’s Bank of China made a decision to ban Bitcoin in December 2013 after news of Bitcoin’s connections to illegal drugs and gun trade came to light. China has now banned all cryptocurrency and Bitcoins indefinitely and imposed stringent rules for cryptocurrency mining. The government allowed local banks and cryptocurrency exchanges the right to close down any crypto-related activity.
Turkey bans Bitcoin and Crypto Payments
Turkey has been strict in its prohibition of cryptocurrency, so the ban on Bitcoin payments and Bitcoin transactions was not surprising. This ban was prompted by a lack of regulations and an oversight from a central authority on cryptocurrencies. Investors are also at grave risk due to the volatility of the market.
Algeria Bans Bitcoin and Cryptocurrencies. They are called ‘Internet Money’.
All cryptocurrencies were banned in Algeria in 2018. According to the Arabic translation, the ban was imposed because virtual currencies do not have physical support such as coins, paper money or payments by cheque or card.
Bangladesh bans bitcoin transactions
2017 was the year Bangladesh declared Bitcoin transactions illegal. Crypto trading was also banned in Bangladesh.
Nepal arrests people for dealing with cryptocurrencies
Nepal was also one of the countries that banned cryptocurrencies in 2017. Seven people were arrested by the Nepali police for running a cryptocurrency exchange shortly after receiving this notice.
The UK bans the largest cryptocurrency exchange that deals with Bitcoins in the world.
The ban by the UK on Binance Exchange has rattled the cryptocurrency markets. Britan’s Financial Conduct Authority stated that Binance Markets Limited is not permitted to engage in any UK-regulated activity. Binance was also asked to inform UK users about the FCA restrictions via its app and website. This ban was caused by Binance Exchange failing to meet anti-money laundering requirements.