10 countries, including Arab countries, where cryptocurrency trading is prohibited
Over the past few years, cryptocurrencies have caused a storm in the world, especially in Western and Arab countries such as Egypt. Trading has become forbidden in Egypt to the extent that the value of each of some of these currencies has reached several thousand dollars.
But while this new market has been welcomed in many countries, a number of countries are also trying to combat the use of this technology by enforcing various laws and restrictions. But what is the reason for banning and banning these countries for cryptocurrency?
China
.png)
Cryptocurrency trading banned in China
China is a rich country that hosts many users of the digital currency market, but recently the country's government has started a serious fight against these types of currencies. This battle includes bans on mining and even cryptocurrency trading.
Since 2013, the country has further restricted the use of digital currencies by imposing several strict standards. These restrictions eventually became a full ban in September 2021, with the Chinese government declaring that any mining and transactions of cryptocurrency would be illegal in the country.
As a result of these restrictive laws, cryptocurrency activities have been banned across China, and many exchanges have announced that they can no longer serve Chinese citizens and will also block IP addresses of users coming from China.
While the above law appears to be quite strict, it is not surprising to look at the Chinese economy, which is mostly state-owned. The lack of dependence of digital currencies on governments and their decentralized nature means that the Chinese government cannot control the operations of this market, and this issue does not align with the economic ideology of this country. Of course, this incident is very sad for Chinese users, because this country was once considered a cryptocurrency mining magnate.
Algeria
.png)
Cryptocurrency trading is prohibited in Algeria
Algeria, located in North Africa, has officially announced a ban on the use of digital currencies since 2018 by passing new laws. According to these rules, any activity related to “currencies that are considered virtual” will be prohibited.
In its interpretation of this law, the Algerian government says: “Any currency that cannot be backed or exchanged for physical currencies or financial documents such as checks, coins and credit cards are considered virtual. Anyone who violates these laws is punished according to the financial laws.”
Nepal
.png)
Cryptocurrency trading is prohibited in Nepal
Nepal is a small and closed country on the southeastern border of China, which in 2019, under a law called the "Foreign Exchange Act", banned mining and the exchange of digital currencies.
The desire of the Nepalese government to have a digital currency with national support appears to be the main reason for the opposition and complete ban of digital currencies in this country. Because of this issue, we are likely to see the introduction of Nepal's digital currency in the coming years.
Vietnam
.png)
Cryptocurrency trading prohibited in Vietnam
While digital currencies are not completely banned in Vietnam, you cannot use any cryptocurrencies (even currencies like Bitcoin and Ether) to purchase goods and services in the country. However, mining cryptocurrency and using blockchain technology is currently legal in this country.
No clear reason has been announced for banning the use of cryptocurrencies in financial transactions in Vietnam. But some believe that the government of this country may follow the path of China and seek to ban any currency that cannot be controlled and generalize it to the law of its country. Of course, this is an expectation, and there may be other reasons for the Vietnamese government’s opposition to cryptocurrencies, which may be announced in the future.
Related: Top 10 Cryptocurrencies Updated in 2022
Russia
.png)
Cryptocurrency trading prohibited in Russia
Many believe that the state authorities are worried that the stability of Russia's cash reserves will be damaged if digital currencies are used as a means of payment. However, Russian citizens can obtain their digital currency wallets outside the Russian Federation. Therefore, Russians (even announcing a possible ban in the future) can still consider this market as an investment option.
Although the above laws have been in Russia for several years, they may change in the future. Russian President Vladimir Putin recently stated that cryptocurrencies deserve to be considered as a means of payment. But he remains skeptical about trading these currencies for exports, such as oil exports.
Bangladesh
.png)
Cryptocurrency trading prohibited in Bangladesh
Currently, Bangladesh does not allow the exchange of digital currencies, because the exchange of these types of digital currencies is subject to the financial laws and regulations of the country, especially the “Foreign Exchange Act” approved in 1947, the “Anti-Money Laundering Act” approved in 2012 and “ The Anti-Terrorism Law adopted in 2009 is inconsistent.
As a result, in Bangladesh, no purchases with digital currencies are possible, and their exchange is also illegal, because officials in this country consider it a very high risk due to the decentralized and uncontrolled nature of digital currencies.
Ecuador
.png)
Cryptocurrency trading is prohibited in Ecuador
This South American country banned the use of digital currencies in July 2014. At the same time, Ecuador plans to launch its own “electronic money”, which will be backed by the country’s central bank.
Despite the laws banning the use of digital currencies, the rise in popularity of Bitcoin over the past years has led to an increase in the use of this currency in Ecuador. Many of the country's citizens are still involved in buying and selling bitcoin and have even formed a growing Ecuadorean bitcoin community.
Egypt
.png)
Cryptocurrency trading is prohibited in Egypt
In January 2018, the Central Bank of Egypt issued a warning regarding the exchange of digital currencies such as Bitcoin due to the very high risks. The Central Bank also announced that trade in Egypt will be limited to official paper money approved by the bank. The Egyptian Dar Al Iftaa, the main center of Islamic law in Egypt, has issued a fatwa banning Bitcoin trading. Dar Al Iftaa has declared that digital currencies can harm national security and central financial systems, and can also be used to fund terrorism and terrorist activities.
While Egypt has not declared digital currencies completely illegal, the country's religious laws prohibit their use. The Islamic Council of Egypt has declared that the existence and use of digital currencies may be considered a threat to national security. Also, the Egyptian government believes that the apparent instability of digital currencies could harm the country's economy.
It seems that these religious restrictions could not deter Egyptians from buying and using cryptocurrencies. The cryptocurrency market is still hosting thousands of Egyptian users entering this space despite warnings from the country's central bank.
Turkey
.png)
Cryptocurrency trading is prohibited in Turkey
Turkey has a cryptocurrency market, but it seems that the country's government is not very happy about this. In April 2021, the Turkish government announced that due to the risks associated with cryptocurrencies, their use as a payment option is prohibited.
Recep Tayyip Erdogan, the head of the Turkish government, has clearly stated that he intends to control cryptocurrency activities by enforcing laws. It is not yet clear when these laws will be officially implemented and what restrictions Turkish citizens will face regarding ownership of these types of coins.
North Macedonia
.png)
Cryptocurrency trading prohibited in North Macedonia
Currently, Macedonia is the only European country that has completely banned cryptocurrencies. This ban includes spending or exchanging cryptocurrencies or investing in this market. The Central Bank of North Macedonia has stated that cryptocurrency-related activities are linked to criminal activities. Also, the government body says that the uncontrollable nature of cryptocurrencies makes them an economic risk. Of course, this is a belief that has already been announced by many central banks and governments in various countries.
Understanding the cryptocurrency ecosystem is not an easy task, especially for those who are new to the field. Therefore, it may take some time for countries opposed to this technology to slowly accept the use of cryptocurrencies; Some countries also accepted them now.