Since the development of the first cryptocurrency, bitcoin, the world of cryptocurrency has become a global phenomenon over the last decade. Even though it’s known for its highly volatile marketer, more and more people are still interested and started engaging in cryptocurrency.
When governments become aware of specific factors, their next step would be to create laws that regulate the new entity into their system. The mainstream adoption of cryptocurrencies has already started, and several governments are finding different ways to integrate them into their economies.
While there are countries that are open and started utilizing cryptocurrency as a mode of payment for some of their firms’ goods and services, not every country is getting the hype of cryptocurrency. Unfortunately, several governments are still skeptical about the crypto’s nature and think that it brings a harmful change to their community.
In this article, we will tackle the countries where Bitcoin is illegal. Due to its functionality, Cryptocurrency is constantly growing worldwide, and banning any Cryptocurrency may affect future potential deals or transactions, which in turn affects your future deals as well. This little information is essential as you progress in your Crypto career in Crypto trading platforms such as Bitcoin Pro.
China is one of the countries that have been very open about its disapproval of cryptocurrencies. Although the Chinese were really curious about it and made them involved in the mining process of other different cryptocurrencies.
However, in recent years, China has cracked down on all the crypto-miners in their country and has banned the use of cryptocurrencies for transactions both personal and business-related.
The main issue that the Chinese government and banks have with cryptocurrency is decentralization, which makes regular cryptocurrencies difficult to regulate in Chinese society.
Vietnam does not recognize cryptocurrency as a mode of payment, but there is no specific ban on exchanges and trading. This country preferred to cancel the usability of cryptocurrency as an asset or a foreign currency. However, owning it is not illegal, but there are no local exchanges in the country, so cryptocurrency trading is essentially useless for Vietnamese traders.
In 2020, the Bank of Thailand publicly announced their desire for financial institutions not to engage in any crypto transactions due to the possibility of issues coming from unregulated trade. The Thai Central Bank stated that cryptocurrencies were not legal in Thailand and later expressed their worries that people might possibly use cryptocurrencies for illegal activities such as money laundering or transactions that support terrorism.
Ecuador did not actually ban the trading and exchange of cryptocurrency, but the Ecuadorian government just doesn’t recognize bitcoin or any other cryptocurrency as a valuable and usable asset. According to the Central Bank of Ecuador, the value of cryptocurrency is entirely speculative and holds no real purchasing power. This makes trading and exchanging in cryptocurrency useless in the country.
The European Union has openly shown support for advancing cryptocurrency as a viable asset and a usable currency. However, several countries in the EU have started allowing cryptocurrencies to be used for personal and business transactions. Denmark has announced their reservations towards this mentality on cryptocurrency.
The Danish Financial Authority (DFSA) had issued a statement saying that they have no hands in any regulation in all Cryptocurrency transactions, which essentially states that Danish traders will trade at their own risk for scams and laundering.
Connecting how the five countries listed above deal with the rise of cryptocurrency, it all boils down to regulation. With China as an exception, the four countries have not technically banned cryptocurrencies but instead regulated their usability to make Crypto obsolete.
The country’s reasons are also very similar between the countries; First, they want to limit the crimes from crypto-trading, and second, the lack of a specific designation for Cryptocurrency value causes skepticism from the government.
It’s interesting to see how these countries handle the continuously developing Cryptocurrency future that has the potential to take over the world’s market. We can only wait, trade, and see.