As cryptocurrencies spread across the world, so do the regulations put in place to try to govern them. The landscape is constantly changing, and it's not easy to keep up with the rules in different jurisdictions.
Unlike electronic money, virtual currencies or crypto-currencies do not have an explicit legal status to date and their supervision by public authorities remains embryonic.
Under French law, crypto-currencies have no clear legal status and are not recognized as financial instruments. As a result, crypto-currencies are currently not regulated.
Yet, we can cite several examples of countries that have chosen to partially or totally ban the use of cryptocurrencies. Here is a (non-exhaustive) list of states that have made this choice.
Turkey's central bank has banned cryptocurrency payments. However, this decision was not a surprise, as the country had tightened restrictions on cryptocurrency exchanges in recent months.
Turkey justifies the ban by the lack of regulation and central authority for currencies. It considers this a risk for investors who cannot recover their losses.
India continues to threaten a ban
The Indian government has not yet passed any anti-crypto regulations. However, a bill proposing a ban on private cryptocurrencies will soon be introduced in the Indian parliament. One of the reasons behind the bill is that the government believes that cryptocurrencies are funding illegal activities.
However, the government is not entirely opposed to digital currencies. It is also considering its own central bank digital currency (CBDC), the digital rupee.
Nigeria rejects cryptocurrency exchanges
Nigeria has tightened its ban on cryptocurrencies in February 2021. Africa's largest cryptocurrency market has banned banks and financial institutions providing safe and off-ramp crypto services since 2017.
In addition, the announcement even threatened to close bank accounts found using cryptocurrency exchanges.
Bolivia's ban is maintained
Bolivia's central bank banned all decentralized cryptocurrencies in 2014. However, it has made provisions to allow those created by the government. This decision was put in place to protect the national currency and protect investors.
At the time, Bolivia was the only country in South America to have an outright ban on cryptocurrencies.
Ecuador follows Bolivia in banning cryptocurrencies
Ecuador quickly followed Bolivia, implementing an outright ban on decentralized currencies later in 2014.
In a vote in the National Assembly, the government amended monetary and financial laws to allow payments using "electronic money," while banning non-state-controlled coins.
Algeria does not support the Internet currency
In 2018, Algeria made it illegal to use cryptocurrencies. Those who violate this ban are punishable under the financial laws already in place.
In Nepal, cryptocurrency can mean jail time
Nepal banned cryptocurrencies in a notice issued in 2017 by Nepal Rastra Bank. Shortly after that notice, law enforcement arrested seven people for running a cryptocurrency exchange. At the time, they faced fines and possible jail time. Currently, the case is still ongoing.
South Korea is not interested in confidentiality parts
Cryptocurrencies are legal in South Korea, and some of the big players in the space are from the region. However, the country has started 2021 by banning confidential coins like Zcash (ZEC) and Monero (XMR). The government asked the country's cryptocurrency exchanges to delist these coins starting March 21.
The reasons for the ban were related to cybercrime syndicates and money laundering. As a result, the South Korean government considers the extent to which the confidential coins provide anonymity to be an impediment to law enforcement.
Qatar bans banks from trading in cryptocurrencies
Qatar has warned banks against trading cryptocurrencies, in 2018.
A circular from the Qatar Central Bank's Financial Institutions Supervision and Control Division warned banks not to "deal with bitcoin, or exchange it with any other currency, or open an account to deal with, or send or receive any money transfer for the purpose of buying or selling this currency." Those caught have been informed that they face penalties.
In Egypt, crypto is haram
Cryptocurrencies are not directly banned in Egypt. However, in 2017, Islamic lawmakers declared transactions with cryptocurrencies haram (forbidden) under sharia law.
Dar al-Ifta considers cryptocurrencies to be potentially harmful to Egypt's national security and economic health.
Bangladesh does not support cryptocurrencies
Since 2017, Bangladesh has banned cryptocurrencies. The central bank has warned against Bitcoin transactions. As it said, these are illegal. Therefore, trading with unnamed individuals may go against the country's Prevention of Money Laundering Act.
The central bank asked citizens "to refrain from conducting, assisting and advertising any type of transaction through virtual currencies such as bitcoin in order to avoid financial and legal harm."
As previously stated, this list is not exhaustive, and prohibitions on cryptocurrencies change often. As Bitcoin becomes more accepted by the general public, it is possible that the global legal landscape will change even more.
While it appears that some countries are moving toward more restrictive policies, other governments are considering ways to participate in the future of digital currency. In most cases, this is through a central bank digital currency.
How each country will engage with the future of currency is uncertain, but digital currencies in all their forms are probably not going away anytime soon.
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