16 August, 2021
During the past few months, more and more countries have decided to stand up and fight back against cryptocurrencies. Local officials believe that Bitcoin and other currencies pose a risk to their nations and residents. Although their reasons are diverse, it is important to understand that these bans are indeed a threat to Bitcoin and cryptocurrency investors. Which countries have decided to take steps to ban cryptocurrencies? Within this guide, readers will learn more about the countries that have banned or considered banning Bitcoin.
Malaysia
Recently, Malaysian has taken a hard stance against cryptocurrencies. It is one of the many countries that has decided to ban Bitcoin. Individuals who like to bet at a live casino can guarantee that Malaysia is not going to change its opinion anytime soon. It was recently announced that Malaysian authorities had destroyed thousands of bitcoin mining machines that were confiscated within the past few months. The mining machines were destroyed using a steamroller. The machines were confiscated as part of a joint operation between Sarawak Energy Berhad and the local policy. It was estimated that the machines would be worth $1.26 million.
As a result, eight individuals were arrested for being involved in illegal mining activities. Authorities confirmed that the machines were using stolen electricity to mine bitcoin. SEB lost 8.4 million ringgits due to the illegal operation. Nevertheless, Malaysia has not banned Bitcoin trading. It has considered it numerous times but it hasn’t done it yet.
China
China has constantly taken a hard stance against Bitcoin. Since 2017, the country has been banning local cryptocurrency exchanges causing them to shut down. Once this happened, regulators began stopping domestic trading. Domestic cryptocurrency exchanges have been banned in China but some people in the country have found ways to evade it. Thanks to the Chinese crackdowns, the United States has become the world’s top bitcoin mining country. It is estimated that the country accounts for roughly 17% of all bitcoin miners in the world.
Instead, China has released its own digital currency and it has already reached $5.3 billion in transactions. As for Bitcoin transactions, they’ve plummeted in China and elsewhere. Suffice to say, China’s decision to ban Bitcoin has severely hindered the cryptocurrency’s rise.
Algeria
Near the end of 2017, rumors began spreading that Algeria would soon implement a new cryptocurrency ban. In 2018, it happened. A stipulated was added to article 117 to ban the sale, use, and possession of virtual currencies. Failing to follow the law would lead to legal punishment. Suffice to say, individuals in Algeria have decided to stay away from Bitcoin as a possible investment. The country’s government has claimed that Bitcoin is a dangerous commodity because it conceals the identity of parties involved in transactions.
Bangladesh
Bangladesh is one of the first countries to ban bitcoin. In 2014, the Bangladesh Bank warned people that they could get into serious trouble for using Bitcoin with a maximum sentence of 12 years. In late 2017, the country’s Central Bank confirmed that Bitcoin did not confirm with its Foreign Exchange Regulation Act, Money Laundering Prevention Act, and Anti-Terrorism Act. Nevertheless, locals still traded Bitcoin and made crypto trades. As a result, the country took another step to make it harder for them to do so.
Local banks and financial institutions made their regulations stricter. In 2018, it was confirmed by the Assistant Deputy Commissioner of the Cyber Crime Unit that crypto traders would be prosecuted. He went on to say that some users had already been located and others would be hunted.
India
On April 6, 2018, Indian officials announced a ban on cryptocurrencies. The announcement was not a major surprise for many cryptocurrency investors, as rumors had been saying as much for months prior.
The global cryptocurrency market has been gaining a lot of attention since the COVID-19 pandemic was announced. The announcement causes a flurry of activity in the global cryptocurrency market. It did not take long for the market to become even more volatile than before.
On May 19, 2021, CNN Business ran an article about China’s crackdown on bitcoin and other cryptocurrencies. And, this is not to mention Elon Musk’s public announcement that Tesla would no longer accept bitcoin as a form of payment for its vehicles. The market is still yet to recover.
