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The decentralized cryptocurrency, Bitcoin is the first widely adopted cryptocurrency in the crypto market. With time people have turned to crypto for investment and criticisms have arisen due to its restriction of usage. The legal status of Bitcoin varies from country to country, while in some countries it is not properly defined in some countries bitcoin's status as a legal currency is constantly changing. Though a majority of countries do not consider Bitcoin illegal, the use of Bitcoin as a medium of payment varies with different regulatory implications.
Many countries have welcomed the use of Bitcoin, while some countries have banned it due to its volatility and decentralized nature. Some countries also perceive it as a threat to current monetary systems and are concerned about its support of illicit activities such as terrorism and drug trafficking. Be it banning Bitcoins due to their decentralized nature or as a threat to the current monetary system, nine countries decided to do so, which include:
Bolivia has prohibited the use of Bitcoin since 2014. The Bolivian Central Bank has banned Bitcoin and other digital currencies that are not regulated by a country or economic zone.
Bitcoin and cryptocurrencies are prohibited in Bangladesh. Transactions of cryptocurrency is punishable for up to 12 years under the country's terrorist financing and money laundering laws.
Cryptocurrencies are illegal in Ghana but the Central Bank of Ghana sees the potential use of blockchain technology and access and how it can be integrated into their financial system.
Algeria banned cryptocurrencies with the passing of financial law in 2018. The country has banned it due to its digital nature.
Bitcoin and other cryptocurrencies are banned in Qatar. The reason behind the ban on cryptocurrency is weak compliance with Anti-Money Laundering (AML) regulations. Another reason for its ban is price volatility.
Bitcoin and cryptocurrencies are banned in North Macedonia. North Macedonia is the only country in Europe to officially ban cryptocurrencies.
The Dominican Central Bank has banned cryptocurrencies in their country. Under Dominican Law, Cryptocurrencies are not legal currency.
Several news reports have stated that Vanuatu accepts crypto for citizenship by investment program (CBI). The Citizenship Office has confirmed that it is a rumour and that it does not accept crypto. The country accepts only US Dollars in exchange for citizenship.
The Nepal Rastra Bank has banned Bitcoin. The reason for its ban is its digital nature.
Countries that have restricted Bitcoin
Other than the countries where Bitcoin is banned, there are some countries where the use of Bitcoin is legally restricted. In certain countries, banks and financial service providers are prohibited from cryptocurrency exchanges. These countries include:
Moreover, many countries have accepted Bitcoin and embraced digital innovation in this digital era while the jurisdictions that do not support cryptocurrency are at a risk of being left behind. In this case, cryptocurrency regulations are evolving worldwide with its acceptance. With the approval of the new crypto licensing regime, Markets in Crypto-Assets (MiCA) by the European Union, many countries are expected to introduce legislation regarding cryptocurrency. Embracing the cryptocurrency businesses can be an excellent opportunity to bring in innovation and improve the quality of living for the population of the country.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
