The birth of the first cryptocurrency, Bitcoin ensued with a lot of controversies and criticisms from individuals and governments who are not very certain about the role of cryptocurrencies on the economy.
Cryptocurrencies are plagued with so many doubts and criticism that they have not been fully integrated into the global economy. While some countries have eased their reservations about this invention, some countries are still very much strict with their policies guiding the use of cryptocurrencies.
Many governments still believe that cryptocurrencies are the best avenue for criminals to finance crime. They believe the mining process harms the environment and also the volatile nature of cryptocurrencies may not be a good thing for the economy.
In order to control the activities of crypto and prevent any form of threat which could be created from the use of cryptocurrency, some countries have tightened their rules and regulations on the use of cryptocurrencies.
Some countries believe that enacting strict regulations is not enough to prevent any impending danger posed by the use of cryptocurrencies, hence, these countries have banned the use of cryptocurrencies in their countries.
In this article, we will discuss the top 10 countries in the world that have the strictest cryptocurrency regulations.
Top 10 Countries With The Strictest Cryptocurrency Regulation
1. Russia:
The Russian government has deliberated on the issue of cryptocurrency countless times, especially when it pertains to its legal status in the country.
The controversy behind cryptocurrency inspired the Bank of Russia to file a proposal for the senate house to ban the mining and trading of cryptocurrency in Russia. In the bank’s defence, cryptocurrencies are a great threat to the financial system of the Russian economy.
Currently, the use of cryptocurrency as a daily payment method has been banned in Russia but they still hold its legal status.
2. Algeria:
Algeria is a country in North Africa which also have a strong reservation about the use of cryptocurrency. The Algerian government passed a law in 2018, prohibiting any crypto-related activity.
This law prohibits one from buying, selling or using cryptocurrency in Algeria.
If you are caught engaging in any cryptocurrency transaction, you may face serious sanctions from the Algerian government.
3. Egypt:
Egypt is a country in NorthEast Africa with a huge qualm for cryptocurrency. In the year 2018, Dar al-Ifta, an Islamic body in Egypt, claimed that the use of Bitcoin is “haram”, hence, it served as a religious law against the use of Bitcoin. The banking laws have also shared in the concern of Dar al-lfta which is why Bitcoin trading can not be done in Egypt without a Central Bank license.
4. China:
China is another country that is very averse to cryptocurrency given the restrictions the country placed on cryptocurrency usage in the country in 2021.
The Asian giant economy acknowledges that cryptocurrency aids criminals and money laundering, also mining activities are harmful to the environment.
China did not just tighten their crypto regulations, it banned cryptocurrency in phases.
Firstly, the Chinese government mandated all financial institutions to stop facilitating all crypto transactions.
In the end, it prohibited all domestic mining agencies from operating in the country.
5. Bolivia:
Bolivia has always been clear about her position in the cryptocurrency controversy. The country does not believe that anything good can come out of cryptocurrency, which is why the government banned Bitcoin and other cryptocurrencies in 2014.
According to the Bolivian government, Cryptocurrencies are not good investment assets.
6. Bangladesh:
Bangladesh is a country in Asia which has enacted very strict rules and regulations concerning its financial sector since time immemorial. These strict rules and regulations are meant to curb money laundering which is believed to be propagated with cryptocurrency. Therefore, the country prohibits the use and trading of cryptocurrencies of any form. It is considered illegal in this country and anyone found guilty will be punished severely.
7. Turkey:
The Turkish government was never strict with cryptocurrency regulation in the country until 2021. In fact, Turkish people once used cryptocurrencies to hedge against inflation. However, after it was discovered that cryptocurrency was used for some bizarre activities in the country, the country’s central bank came up with a policy to ban crypto. A lot of cryptocurrency fraudsters were also arrested, following the crypto ban.
8. Vietnam:
In Vietnam, the government does not have a problem with people trading or holding cryptocurrency as assets. However, the State Bank of Vietnam prohibits any form of transactions in the country using Bitcoin or any other cryptocurrency. It’s a huge offence to make payments in cryptos in Vietnam and a severe penalty awaits anyone caught in the act.
9. Nigeria:
Nigeria is a country in West Africa, considered to be the giant of Africa. This country was rumoured to be the largest cryptocurrency market in Africa until the government banned the use and trading of cryptocurrencies.
The Nigerian government mandated financial institutions from providing any services related to crypto and also threatened to close any financial institution rendering such services.
The Central Bank of Nigeria introduced a digital currency named ” eNaira” in place of cryptocurrency but despite that, Nigeria ranks the first African country in crypto adoption and 11th in the world.
10. Morocco:
Morocco is yet another country with very strict regulations on cryptocurrency. Morocco believes that cryptocurrency transactions are a poison to the country’s foreign exchange regulation.
To have full regulation of her forex with other countries, Morocco has become more strict with her regulations on cryptocurrency.
Conclusion
The perceptions countries have about cryptocurrency are very different from the others. While some countries only work to regulate the activities of cryptocurrency activities in their country, some are determined to ban it outrightly.
However, many countries have a fraught relationship with cryptocurrencies.
As reported by the Library of Congress(LOC) in November 2021, financial regulators of about 103 countries have been mandated by their governments to make protective crypto policies and regulations.
Therefore, the level of freedom you have to use cryptocurrency depends on the country you are in.
Disclaimer: The information provided in this article is solely the author’s opinion and it is provided for educational purposes only.
