7 Countries That Are Unlikely to Accept Cryptocurrencies Anytime Soon
Bitcoin and other cryptocurrencies are under threat with several countries moving to ban local and foreign trading of digital money as well as its use in transactions. These seven nations show no signs of letting up when it comes to their implementation of cryptocurrencies as illegal.
Bolivia’s central bank released a statement in 2014 stating that the use of any kind of currency not issued or regulated by the government is illegal and punishable by law. International Business Times reported on last year’s arrest of 60 Bitcoin traders because of the government’s stance on such currencies being nothing but “pyramid schemes”.
Ecuador followed suit a few months after Bolivia’s cryptocurrency ban. The prohibition was proposed as the main inclusion of the country’s monetary reform with 99 votes for and only 21 against the legislation. All digital currencies are not prohibited, however, as the government created its own centralized Ecuadorian electric money, the success of which is yet to be determined.
The National Bank of Kyrgyz Republic has prohibited the use of any kind of digital currency as a form of payment due to the lack of government backing of Bitcoin, among many others, which makes it impossible to regulate. For now, only the som, the country’s national currency, is recognized as the sole legal medium of exchange.
Although it has been a challenge to implement, Bangladesh stands firm in its decision to ban decentralized currencies like Bitcoin and Ethereum as part of its Money Laundering Prevention Act. Coinwire reported earlier this year that cybercrime authorities are currently on the hunt for Bitcoin traders who have managed to stay under the radar. The policy was enacted because terrorist groups might be getting funding from cryptocurrencies.
News of a group of Nepalis getting apprehended by the local police for Bitcoin trading surfaced in the cryptocurrency’s website in October. The government has been in discussions of regulating cryptocurrencies but since the arrest, there has been a moratorium on the use of digital money and recent reports indicate plans on making it permanent. The local counterpart, Bitsewa, stopped its operations the same month as the arrest of the Bitcoin traders.
The Foreign Exchange Office of Morocco laid out rigid rules against the use of cryptocurrencies in the kingdom due to what authorities deemed as significant risks posed by Bitcoin and altcoins. These risks, in particular, were identified as arms trading and other illegal activities that harm the citizens of Morocco. As of now, the North African country shows no signs of lifting the ban.
China is still set on its total prohibition of domestic and foreign cryptocurrency exchanges. Last year’s move to ban big trades in an effort of mitigating cases of fraud succeeded in diminishing financial and social risks but not in completely shutting down the use of cryptocurrencies. 2018 is looking bleak for those still knee-deep in the game when regulators froze up to RMB 300 million (£34.2 million) worth of digital money in January.
Before you get into trading cryptocurrencies, heed our sound advice of learning about the conditions of the market on which you belong. Although it might seem timely to invest in virtual coins, your homeland’s policies might be lawfully against your interest in digital currencies. Stay updated to stay smart about your finances.