There has been a strained relationship between governments of nations and cryptocurrency, popularly Bitcoin. In some countries, this hiccup has led to an outright ban on trading and investing in Bitcoin. However, the outright prohibition of Bitcoin mainly took place between 2017 and 2018, which coincided with Bitcoin’s bullish run.
Following the increase in Bitcoin interest, central banks and the government saw an ignoble need to put the crypto market to a halt in their respective countries. Those years are considered the biggest years for Bitcoin bans, albeit some countries continue to mull prohibition on the digital currency they can’t regulate.
1. Nigeria Rejects Bitcoin Exchanges
Nigeria doubled its effort to place a ban on Bitcoin and other cryptocurrencies in 2021. Nigeria, reputed with the largest crypto market base in Africa has placed a ban on banks and other financial institutions over Bitcoin transaction services since 2017. In addition to the regulation issued by the Central Bank of Nigeria, it further threatened to close bank account erring in that regard.
2. Turkey Bans Bitcoin Payments
The Central Bank of Turkey enacted a ban on Bitcoin payments in the country. But this latest development didn’t come as a surprise in the country following the stiff restrictions placed on Bitcoin and other cryptocurrency exchanges over time.
The bitcoin ban in Turkey is owed to the deregulation and decentralization of Bitcoin. This however led to considering the risk attached to investing in the digital currency by dissuading investors from losing their money.
3. Algeria Frowns At Internet Money
Algeria in 2018 outlawed Bitcoin transactions. The translation of the law from Arabic describes Bitcoin and another cryptocurrency as:
“A virtual currency is one used by internet users over the internet. It is characterized by the absence of physical support such as coins, paper money, or payments by check or credit card.”
Capping the ban in Algeria has alluded to Bitcoin transactions as a punishable offense under the existing financial laws of the country.
4. Bitcoin Is Haram In Egypt
Bitcoin and other cryptocurrencies are indirectly banned in Egypt, but its Islamic legislation has ensued Bitcoin transaction with a haram (prohibited) status under the 2017 Sharia law. The Dar al-Ifta opines that Bitcoin has the propensity to put the economic health and national security of Egypt at peril.
5. Qatar Regulates Banks From Bitcoin Trade And Investment
Qatar has taken stringent measures to prohibit banks from dealing with Bitcoin and other cryptocurrencies.
In 2018, a circular from the Supervision and Control of Financial Institution Division of Qatar’s Central Bank sternly banks to desist from “dealing with Bitcoin, or exchange it with another currency, or open an account to deal with it, or send or receive any money transfers to buy or sell this currency.” Any individual caught flouting this regulation is culpable with related penalties.
6. Bolivia Continues Its Ban On Bitcoin
The central bank in Bolivia has since 2014 banned Bitcoin and other decentralized cryptocurrencies. The country approved only ones created by the government in a bid to protect Bitcoin investors and Bolivia’s national currency. Today, Bolivia is the only South American country with an outright ban on Bitcoin.
7. Bangladesh Bans Bitcoin
Bangladesh has since 2017 placed a ban on Bitcoin and other cryptocurrencies. The central bank in the country has affirmed transactions in Bitcoin as illegal. The primary rationale behind this move is the anonymous feature characterized by Bitcoin and which conflicts with Bangladesh Money Laundering Prevention Act. To this end, the government of the country has enjoined its citizens to desist from every transaction involving Bitcoin to prevent financial damage.
8. China Shuts Down Bitcoin Mining And Banned Bitcoin Transaction
Since the inception of Bitcoin, which is the frontrunner of cryptocurrency, China has been stiff with its restriction on Bitcoin transactions. The Xi Jinping-led CCP has so far cracked down on digital currency, with the restriction getting serious every year. However, to cut Bitcoin influence in the country, China decided to introduce its centrally-regulated digital currency called Digital Renminbi (RMB).
