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The List of Countries That Regulate and Prohibit Bitcoin Increases

  • The number of countries that have banned the mining and trading of bitcoin has doubled over the last three years.
  • A study done in the United States found that regulatory policies, taxes on cryptocurrencies and bans around the world are on the rise.

A study by the Library of Congress of the United States found that the list of countries to have adopted regulatory policies, raised taxes, or banned Bitcoin and other cryptocurrencies altogether, has grown in the last three years.

During the same period, not only has the price of the world’s biggest cryptocurrency by market capitalization tripled, but countries like El Salvador have adopted it as legal tender.

For the purposes of the investigation, the list of countries was divided between those that applied regulatory policies in order to facilitate the use of cryptocurrency, and those that did so to prohibit it. In turn, the prohibitions were then further divided into two categories: absolute and imposed.

Absolute regulations are those which seek to totally veto the use of cryptocurrencies. The states that have adopted such regulations allege that decentralized digital currencies have no endorsement, are fraudulent, and that their commercialization constitutes a crime.

While the required regulations have another purpose. They are those that, although they prevent businesses and banks from using cryptocurrencies, do not consider their possession or use by individuals a criminal act.

Countries with Absolute Restrictions on Cryptocurrencies

As of November last year, a total of 9 countries had banned the use of cryptocurrencies in their economies, according to the study. Among these countries, China stands out, with the People’s Bank of China having banned the mining and trading of BTC and other cryptocurrencies.

The other countries to have applied absolute restrictions, prohibiting the use and trade of BTC and the other cryptocurrencies, are Algeria, Qatar, Egypt, Iraq, Morocco, Nepal, Oman, and Tunisia. The final country to date to join this list was China themselves, after announcing the issuance of the digital yuan (CBDC).

Since the publication of the first report in 2018, the list of nations that have decided to impose bans on cryptocurrencies has risen from 15 to 45. Likewise, during the same period, the number of countries that have adopted BTC and crypto have grown assets in their economy.

On the Flipside

  • It is believed that, throughout 2022, the use of Bitcoin as a legal tender could be approved by the congresses of several Latin American countries, including Panama, Bolivia and Costa Rica.

Why You Should Care

  • Likewise, the study by the U.S. Congress indicates which countries have adopted regulations related to taxes on crypto assets and against money laundering (AML).
  • The list of countries to have installed AML regulations increased from 33 in 2018 to 103 today.

BTC holders have largely rejected such regulations as they seek to deny the privacy of cryptocurrency operations. In this way, it becomes possible to detect related illegal financial movements.

Furthermore, these regulations do not prohibit the use of cryptocurrencies, or their storage in wallets, but rather focus on keeping track of the operations being carried out on crypto exchanges.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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