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The relationship between many world governments and cryptocurrencies is making news on account of their discords. Around 2017 and 2018, Bitcoin was on its first bullish run, and governments across the world had noticed cryptocurrency's popularity increasing. That is when the streak of bans against Bitcoin started. At present, many powerful countries have banned Bitcoin and cryptocurrency trading, in a move to avoid loss of power from monetary authorities and curb illegal activities.
Bolivia's central bank banned all forms of currency that were not regulated by the government, like Bitcoins and cryptocurrency, in June 2014. Authorities in Bolivia also banned citizens from mentioning prices in any other currency that was not approved by Bolivia's national institutions. At the time of this ban, Bolivia was the only South American country that directly banned cryptocurrency, to protect the national currency and investors. Ecuador also followed Bolivia and implemented a similar ban.
Egypt has not imposed a direct ban on Bitcoin, but according to the Islamic Legislator, all cryptocurrency transactions are prohibited under Sharia law. Egypt's authorities also consider cryptocurrencies to be damaging to national security and the economy.
In December 2013, the People's Bank of China decided to put a curb on Bitcoin as news about Bitcoin's connection with illegal drugs and gun trafficking came to light. And now in 2021, China has indefinitely banned Bitcoins and all cryptocurrencies and is imposing stringent rules on cryptocurrency mining. The government has allowed asked local banks and cryptocurrency exchanges to shut down all crypto-related activities.
Turkey was always imposing stringent laws against cryptocurrencies, and the ban on Bitcoin and crypto payments didn't come as a surprise for the locals. Lack of regulations and a central authority overlooking cryptocurrencies were the two main motives behind this ban. The government also feels it's a grave risk for investors as the market is unbelievably volatile.
In 2018, Algeria banned the use of all cryptocurrencies. According to the Arabic translation of the law, the reason for the ban was the fact that virtual currencies lack physical support like coins, paper money, or payments by cheque or credit card.
In 2017, Bangladesh declared Bitcoin transactions as illegal and people who were indulging in crypto trading were said to be going against the country's Money Laundering Prevention Act.
Nepal was also among the countries that imposed a ban on cryptocurrencies in 2017. Soon after this notice, Nepal's law enforcement arrested seven people for operating a cryptocurrency exchange.
Uk's ban on Binance exchange rattled the cryptocurrency market. According to Britan's Financial Conduct Authority, Binance Markets limited is not allowed to undertake any regulated activity in the UK. Binance has also been asked to notify UK users of the FCA's restrictions on its website and app. This ban is a result of Binance Exchange not meeting anti-money laundering requirements.
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