7 Countries Where Crypto is Banned

Countries Where Crypto is Banned: Cryptocurrency has taken the entire world’s financial system by storm and has become one of the trending topics in today’s world. 

It is slowly growing as a digital asset, with more and more people investing in different currencies. Along with that, several investment banking institutions and centralized banks fear losing control with the Decentralized Finance (DeFi) system slowly coming into existence. While Bitcoin is the ocean’s shark, several other coins have come up in the cryptocurrency market. In recent times, there’s also hype about metaverse and NFT. Thus, a lot is going on in the online world. 

Now gone are the days when you only used to have shares or real estate to invest your money. 

Cryptos and all the projects built on cryptocurrencies attract investors who are willing and intelligent enough to accept the change. The change seems to be inevitable in the way the world is progressing.  

Countries Where Crypto is Banned

Despite that, some countries have completely banned cryptocurrency. We have brought 7 countries where cryptos are forbidden. So take a look for all the insights.

1. Qatar

Most of us love the Middle East for its oil money, luxurious life of the Arabs, food, and culture, and the various old and new architectural designs amidst the desserts. But did you know that Qatar isn’t very friendly to the cryptos? The Qatar Financial Centre Regulatory Authority(QFCRA) has already announced to its citizens that any kind of crypto-related services is banned in the nation. 
The Qatar Financial Centre or the QFC is a jurisdiction within the country, having its tax, business, and financial infrastructure. The regulatory authority has vividly defined that trading and holding cryptos, payments using cryptos, and any services facilitating the same aren’t legal. 

2. Bangladesh 

Bangladesh is another country that is strictly against cryptos. Unlike Egypt, Bangladesh has been straightforward to its people way back. Way back in 2014, when there weren’t many cryptos but Bitcoin, the Central Bank of Bangladesh clearly declared that anyone caught using Bitcoin would be facing jail in a money-laundering case.

It doesn’t stop here, as in 2021 again, the Central Bank of Bangladesh put forward a clear statement illustrating that keeping or transacting using cryptos is illegal. There have been reasons that the authorities have explained to Bangladesh’s citizens, and these are primarily security issues regarding the usage and transaction of cryptos. Whatever be the reason, it’s undoubtedly a nail in the coffin for all the crypto lovers of Bangladesh.

3. China 

After Bangladesh, there is another Asian country on the list. China put a complete ban on cryptocurrencies in September 2021. The Government warned its people before, thus making it clear to refrain from crypto transactions or possessions. Whether it’s crypto mining or crypto exchanges, China has strict laws against any actions regarding cryptocurrencies. 

Many believe that the country is trying to develop and start the flow of its e-currency. People think that PBoc or People’s Bank of China is emerging as one of the finest banks to launch China’s very own digital currency through which they can track their citizens’ activities.

4. Algeria

Algeria is the fourth country on our crypto ban list. The Government banned the usage, possession, and trading of cryptocurrencies back in 2018, and the law still holds to date. There haven’t been any amendments or relaxations to the country’s crypto law, thus portraying the Government’s firm decision regarding cryptos. Therefore, the crypto enthusiasts can only hope that their Government gives a green signal for improving the crypto scenario in Algeria. 

5. Iraq

After Algeria, Iraq is another country on the list. Like the other countries that don’t welcome cryptos, Iraq has also been hostile to the new-age online decentralized currencies. It all dates back to 2017 when the Iraqi Central Bank made it clear through a formal statement that there won’t be any use of cryptos within the nation’s borders.

The crypto regulation is valid even now. In 2021, Kurdistan Regional Government strictly issued that they won’t allow any payments in the cryptocurrencies or proceedings of money transfer entities to allow cryptocurrency brokerage.

6. Morocco

Like Iraq, Morocco too banned the trading of all cryptos way back in November 2017. Office des Changes, the nation’s regular currency, made it clear about the country’s take on digital currencies. The Government’s Ministry of Finance made it crystal clear that payment via cryptos will result in heavy penalties.

But despite the country’s take, research has shown that nearly 2.4 percent of the entire population owns cryptos in Morocco. Unfortunately, there haven’t been any changes in the laws.

7. Vietnam

The 7th and last country on our list is Vietnam. The Asian country seems to be firm about its crypto decision. Interestingly, the State Bank of Vietnam has made it clear officially to all the nation’s citizens that the issuance, circulation, or using cryptos as payment is illegal. As a matter of fact, to impose more control on the public, the Vietnam Government has come up with a fine if anyone is found guilty. The fines range from 150 million VND to 200 million VND. 

What’s Your Take?

This was our list of 7 countries where cryptocurrency is currently banned. Apart from these 7 nations, countries where crypto is banned like Bolivia, Indonesia, Nepal, and Nigeria have also banned trading or payment in cryptos. While several people, governments, and institutions are taking cryptos seriously, some countries are still turning blind eyes to the newest changes in the finance space. 

Some consider the entire cryptocurrency system as nothing but speculation and farce. On the other hand, a large section understands and acknowledges the change. Time will surely tell the rest, but in which category do you fall?

Frequently Asked Questions on Crypto

Q. Is crypto banned in India?

It is not banned in India, but cryptocurrencies as a payment in India are not regulated by any central authority. Also, there are no rules or regulations laid down for Crupto during the setting dispute when dealing with cryptocurrency.

Q. Is crypto legal in Canada?

Yes, cryptocurrency is legal in Canada, but it is not considered legal tender in Canada.

Q. Which countries accept cryptocurrency as legal tender?

As of December 2023, only two countries had adopted cryptocurrency as a legal tender, and those countries are El Salvador and the Central African Republic.