China is not alone. Countries ban cryptocurrency, including Arab countries

Bitcoin has sparked controversy since its inception in 2009, as has the cryptocurrency that followed.

Although it has been widely criticized for its volatility, its use in nefarious transactions, and the exorbitant use of electricity to mine it, some consider Bitcoin, especially in developing countries, to be a safe haven during times of crisis. economic storms.

But as more people turn to cryptocurrency as an investment or lifeline, these issues have manifested themselves in a host of restrictions on their use.

Although the majority of countries do not make the use of Bitcoin itself illegal, its status as a means of payment or as a commodity varies with regulatory implications.

While some countries have placed restrictions on how Bitcoin is used, banks prohibit their customers from making cryptocurrency transactions. Other countries have outright banned the use of Bitcoin and cryptocurrencies, with severe penalties for anyone transacting with them.

Algeria

Algeria currently bans the use of cryptocurrencies after the adoption of a financial law in 2018 that made the purchase, sale, use or possession of virtual currencies illegal.

Bolivia

The use of Bitcoin has been totally banned in Bolivia since 2014. The Bolivian Central Bank has issued a decision banning Bitcoin and any other currency that is not regulated by a country or an economic region.

China

China has cracked down on cryptocurrencies with increasing intensity throughout 2021. Chinese authorities have issued repeated warnings to its people to stay out of the digital asset market and have severely stressed mining in the country as well as the currency exchange in China and abroad.

Efforts to undermine Bitcoin – a decentralized currency beyond the control of governments and institutions – are widely seen as an attempt by Chinese authorities to float its cryptocurrency.

Colombia

In Colombia, financial institutions are not allowed to facilitate bitcoin transactions. La Superintendencia Financiera warned financial institutions in 2014 that they cannot “protect, invest, negotiate or manage virtual money transactions”.

Egypt

In Egypt, Dar Al Iftaa issued a fatwa in 2018, calling Bitcoin transactions a “haram”, which is prohibited by Islamic law. This comes despite the fact that Egyptian bank laws are not binding, as they were tightened in September 2020 to prevent the trading or promotion of digital currencies without a license from the Central Bank.

Indonesia

Bank Indonesia, the country’s central bank, has released new regulations banning the use of cryptocurrencies, including Bitcoin, as a means of payment effective January 1, 2018.

Iran

Bitcoin has a complex relationship with the Iranian regime. In order to avoid the worst impact of crippling economic sanctions, Iran instead resorted to the lucrative practice of bitcoin mining in order to finance imports.

While the central bank bans the circulation of cryptocurrencies mined abroad, it has encouraged bitcoin mining in the country with incentives.

Bitcoin mining

Iran currently accounts for an estimated 4.5% of bitcoin mining operations that take place globally, accounting for revenues in excess of $ 1 billion, according to blockchain analytics firm Elliptic.

In order for the cryptocurrency industry to thrive, Iran offered licensed miners cheap energy in return for selling all cryptocurrencies produced at the central bank, according to Euronews and seen by Al Arabiya. net.

However, unauthorized mining drains more than 2 gigawatts of electricity from the national grid every day, causing power shortages.
To this end, Iranian authorities have banned Bitcoin mining for four months until September 22.

Iraq

Despite continued efforts by authorities to prevent its use, the popularity of cryptocurrencies is increasing in Iraq. The Central Bank of Iraq issued a statement in 2017 banning its use, which is still in effect to this day.

In early 2021, the KRG Home Office issued similar guidelines to prevent brokerage firms and exchanges from dealing in cryptocurrencies.

Nepal

Nepal Rastra Bank declared Bitcoin illegal in August 2017.

North Macedonia

Macedonia is so far the only European country to have imposed an official ban on cryptocurrencies, such as Bitcoin, Ethereum and others.

Russia

Although cryptocurrency is not banned in Russia, there is an ongoing struggle against its use.

Russia released its first cryptocurrency regulation in July 2020, which for the first time classified cryptocurrency as taxable property.

The law, which came into effect in January this year, also prohibits Russian officials from owning crypto assets.
In July, the attorney general announced a new bill that would allow police to confiscate cryptocurrencies allegedly obtained illegally under the pretext of being used for corruption.

Erdogan – AFP

Turkey

Many in Turkey have switched to cryptocurrencies as the value of the Turkish Lira depreciates. With some of the highest utilization rates in the world, the advent of regulations has been swift this year, with inflation peaking in April.

On April 16, 2021, the Central Bank of the Republic of Turkey issued a regulation prohibiting the use of cryptocurrencies, including Bitcoin, directly or indirectly, to pay for goods and services. The next day, Turkish President Recep Tayyip Erdogan went even further and decreed that cryptocurrency trading companies be included in the list of companies subject to anti-money laundering and terrorist financing regulations.

Vietnam

The State Bank of Vietnam has declared that issuing, supplying, and using Bitcoin and other cryptocurrencies are illegal as a form of payment and are subject to penalties and fines ranging from $ 150 million. from VND ($ 6,300) to VND 200 million ($ 8,700).

However, the government does not prohibit the trading or holding of Bitcoin as an asset.