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Reasons for the Ban on Cryptocurrency

by James Musoba
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It’s no secret that cryptocurrencies such as Bitcoin and Litecoin had sparked controversy when they first appeared in 2009. Some people, particularly in the poor world, perceive Bitcoin as an economic haven in times of economic turmoil despite widespread criticism for its unpredictability, its usage in shady transactions, and the excessive use of power required to generate it.

There are several limits on the use of cryptocurrencies that have arisen as more individuals turn to them as an investment or lifeline. For example, Btc and another altcoin (alternative currency to Bitcoin) status is unclear in certain countries or is continually changing. For more reasons on cryptocurrency, check the questions to ask when using an android device for trading bitcoin.

Algeria

A financial regulation passed in Algeria in 2018 makes it unlawful to acquire, trade, use, or keep virtual currencies. The country now forbids the usage of cryptocurrencies.

Bolivia

Bolivia had had a total ban on the use of Bitcoin since 2014 when it passed the law. Bolivia’s Central Bank ruled that it, along with any other unregulated money, should be outlawed.

China

Throughout 2021, China has stepped up its cryptocurrency crackdown. The Chinese government has frequently warned citizens to stay away from the digital asset market, and mining and currency exchanges, both in China and outside, have been severely restricted. Chinese central banker Yin Youping cautioned citizens to “guard their purses” after referring to cryptocurrencies as “speculative assets” in a speech on the 27th of this month.

Bitcoin, a decentralized currency independent of governments and institutions, is under attack, with many speculating that the Chinese government is trying to create its e-currency to compete. With its virtual currency, China’s central bank hopes to become one of the world’s first big institutions to closely monitor its citizens’ transactions. As of August 24, the PBoC has gone so far as to officially prohibit the use of cryptocurrencies in China.

Colombia

A financial institution cannot facilitate Bitcoin transactions in Colombia. According to the 2014 warning from the Superintendencia Financiera, financial institutions cannot “protect, invest, trade, or manage cryptocurrency operations.”.

Egypt

As a result of a religious ruling issued by Egypt’s leading Islamic advisory body, Dar al-Ifta, in 2018, Bitcoin transactions were classified as “haram,” which is against Islamic law. It made some progress on Egypt’s banking laws in September 2020, but the changes are not yet final. The central bank of Indonesia has published new regulations that will make it illegal to pay using cryptocurrencies like Bitcoin starting on January 1, 2018.

Iran

The link between Bitcoin and the Iranian government is murky at best. Because harsh economic sanctions are making it difficult for the country to pay for imports, Iran has resorted to the profitable activity of Bitcoin mining. The Central Bank has made Bitcoin mining more attractive, which restricts trade in foreign-mined cryptocurrencies. Elliptic, a blockchain analytics business, estimates that Iran is home to 4.5 percent of the world’s Bitcoin mining capacity, which could generate over $1 billion in income. The crypto business must thrive in Iran.

Thus the country has made inexpensive electricity available to licensed miners in exchange for the sale of every created cryptocurrency to a Central Bank. On the other hand, unauthorized mining depletes the national grid daily by more than 2GW, resulting in power shortages. Iran’s government imposed a four-month embargo on Bitcoin until September 22 to achieve this goal.

Russia

While the usage of cryptocurrencies is not illegal in Russia, there seems to be a heated debate. In July 2020, Russia implemented its first crypto regulation regulations, designating bitcoin as taxable property for the first time. Government employees are also illegal from possessing any cryptocurrency under the law, which took effect in January. The President of Russia has consistently connected cryptocurrencies to criminal activities. Earlier this year, the Prosecutor General unveiled new proposed laws that would allow authorities to seize cryptos they believe were obtained unlawfully, based on evidence that it used them in bribery.

Turkey

As the value of the Turkish lira fell, many people in the country resorted to cryptocurrencies. Regulations came into effect quickly this year while inflation spiked in April, despite the country having several of the highest usage rates in the world. Erdogan went one step further the next day, issuing a decree adding virtual currencies to a list of businesses subject to generally pro laundering and terrorism funding legislation.

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