5 Countries Where Cryptocurrencies Are Banned And Why?

No wonder, cryptocurrencies have grabbed eyeballs from every corner of the world for the kind of return the investors are enjoying. Considering the extent to which the crypto market has made returns over a period of time, the trend likely to continue for the years ahead comes as no big a surprise. Despite their growth and wide acceptance, there are quite a good number of countries, including big economies, where trading in cryptocurrencies is banned. Keep reading to learn about which are the 5 major countries where cryptocurrencies are banned and why?

India

India has always been in the limelight for having banned cryptocurrencies since the very beginning. Here, you cannot make use of cryptocurrencies to buy or sell anything. It was in the year 2018 that the Reserve Bank of India had banned banks, Non-Banking Financial Institutions and other payment systems regulated by it from facilitating financial transactions for entities related to cryptocurrencies. However, what turned out to be a ray of hope for the investors willing to invest in the cryptocurrency market in India judgment passed by the Supreme Court of India in 2020. Though the air is not yet clear pertaining to cryptocurrency investment in India, we can still wait to see how the story unfolds.

China

There was a time when China used to boast about being home to the world's largest number of Bitcoin miners. The story took a 360-degree turn in no time. Today, the country has banned trading in cryptocurrencies for reasons that aren't clear to the general public. If reports are to be believed, the ban is a step to reduce energy prices as well as greenhouse emissions associated with crypto transactions.

Russia

Russia is yet another country that has levied a total ban against cryptocurrency investment and trading. The country seems to be adamant about not recognizing cryptocurrencies as real money. In Russia, all the market sites for cryptocurrencies, including Bitcoin are blocked. Though industry experts aren't really sure whether the Russian Government would ever allow trading in these currencies there is always a ray of hope.

Bangladesh

As per the financial regulations here, trading in cryptocurrencies is a strict "No". As per the Central Bank of Bangladesh, trading in foreign currencies, that too decentralized ones such as cryptocurrencies, are not allowed. The rules and regulations in Bangladesh are so stringent that if anyone is found violating the law, he/she might end up facing severe punishment including years of imprisonment.

Morocco

Talking about all those countries that are extremely strict when it comes to trading in cryptocurrencies, how can one not mention Morocco? Morocco has grabbed attention because the foreign exchange office here had informed the nationals that transacting in virtual currencies was an "infringement" on foreign exchange regulations. Amidst all this, the country came up with a decision to ban trading in cryptocurrencies in the year 2017. Today, it is speculated that in the coming days, Morocco might allow cryptocurrency investment and trading under certain conditions.