Although cryptocurrency has experienced significant growth worldwide, not all countries are open to it. While it may be legal to store and trade crypto in some nations, some countries have strictly restricted them, and some have completely banned them.
The importance of researching cannot be overemphasised, especially in the crypto space, and I learnt that the hard way. I remember investing in a new crypto and being thrilled about its potential. But when I tried to make a withdrawal, I found out that the country where the crypto was based had strict regulations that made it impossible for me to access my funds.
After learning my lesson, I decided to dive deep and research countries and their crypto regulations. I made the mistake of not researching in the first place, so you don’t have to.
Today, I will be sharing information I’ve gathered about the top ten countries with the strictest crypto regulations.
Ten Countries With The Strictest Crypto Regulations
The legal standing of cryptocurrencies has been the subject of numerous discussions in Russia. The Bank of Russia even proposed a ban on crypto mining and trading, which has made things even tenser. The bank is worried that digital currencies might threaten the financial system. Although cryptocurrencies are currently prohibited from being used as standard payment methods in the nation, their legal status still stands.
China is the latest country to join the ranks of those imposing restrictions on cryptocurrency in 2021. The Chinese government strongly believes that crypto mining contributes to money laundering and is harmful to the environment. In response, China has gradually been implementing a ban on cryptocurrencies. At first, it asked financial institutions to steer clear of any transactions involving digital currencies. Then, it went a step further and banned domestic mining agencies from operating altogether.
As mentioned earlier, some countries have completely banned crypto transactions, and Algeria is one of them. In 2018, the Algerian government passed a law prohibiting the buying, selling, using and even owning crypto. That’s kinda harsh.
Back in 2018, Dar al-Ifta, an Egyptian Islamic organisation, published a religious decree condemning the use of Bitcoin, alleging that its use is “haram.” The nation’s financial laws are consistent with this. And as of September 2020, trading Bitcoin without a license is no longer allowed in Egypt.
Bolivia was one of the first countries to outright forbid Bitcoin use. In 2014, the government banned Bitcoin and many other digital currencies. The nation’s position on cryptocurrencies is pretty straightforward: “Cryptocurrencies cannot be trusted as an investment.”
Bangladesh’s financial sector is heavily regulated, and cryptocurrencies are not excluded. Crypto trading is prohibited in Bangladesh, and anyone caught doing so may face legal consequences, so you should steer clear of it unless you don’t mind getting in trouble with the law.
Although the Vietnam government has nothing against trading crypto or owning them, the State Bank of Vietnam has made it completely clear that using Bitcoin and other cryptocurrencies as payment methods is illegal. That said, anyone caught disobeying the law will face severe consequences. So, if you’re in Vietnam, it’s best to stick to using traditional payment methods and steer clear of crypto as a means of payment.
Nigeria is said to have the biggest Bitcoin market in Africa, but the government has outlawed banks and financial organisations from providing services related to cryptocurrencies. In fact, any banks involved with crypto activities have been threatened with closure. So, while Nigerians may be big on Bitcoin, they’ll have to find other ways to get involved in the crypto world as far as their banks are concerned.
Cryptocurrencies were once a popular way for people in Turkey to protect themselves against inflation. However, things changed in 2021 when a law was passed through its central bank that forbade the use of digital currencies. Many cryptocurrency fraudsters were eventually also taken into custody.
Last on the list is Morocco, and they are known to have really tough laws on the use of crypto. They view using digital currencies as a violation of foreign exchange laws. If you’re in Morocco and interested in getting involved with crypto, you must be extra cautious to avoid running afoul of the law.
Since its inception, cryptocurrencies have continued to grow and take over the world, but some countries have yet to welcome the idea of digital currencies totally. Before investing in any crypto coin, you must conduct thorough research to find out how the country you are located in conforms to it to avoid any bad run-ins with the law.