3 Countries Where Crypto Is Banned And Why

To put things into perspective as to how bad things had really become some years ago, a report shows that over the first half of 2018, a whopping $12 billion was compromised as a result of various rug pull schemes, exit scams, etc.

In this article, we will seek to explore some of the countries that have imposed varying degrees of restrictions on their local digital asset industries.

China

For nearly a decade now, the eastern powerhouse’s relationship with digital currencies has remained extremely fractured. For starters, back in 2013, the country’s central banking authority issued a notice banning all financial institutions from conducting any type of BTC-related transactions. Furthermore, it should be pointed out that it was around this time that the flagship crypto’s price first started to gain immense monetary traction, jumping from $100 to $1000 within a matter of months.

Similarly, in 2017, the country banned fundraising via ICOs, citing concerns of market manipulation and extreme volatility. However, the final nail in the coffin came earlier this year in July when the government issued a blanket ban on its local crypto market prohibiting all mining operations from existing as well as forcing several domestic banks and payment firms — including giants like Alipay — to stop facilitating any type of cryptocurrency transactions.

Turkey

On April 16, 2021, the Central Bank of Turkey officially announced its decision to ban cryptocurrencies, claiming that these assets are “neither subject to any regulation and supervision mechanisms nor a central regulatory authority.” As a result of this official decree, all transactions/payments made using crypto were deemed illegal, presenting users with a host of potential non-recoverable losses.

Prior to the aforementioned all-out ban, Turkey had already been tightening its regulatory noose over its flourishing crypto market. For example, all through Q1 2021, the country’s financial regulator had been forcing various crypto trading platforms and exchanges to constantly hand over sensitive information pertaining to their customers, with things having become progressively worse since then.

Nigeria

Boasting of Africa’s largest crypto market, many Nigerians at one point were doubling down on Bitcoin — amongst various other cryptos — as a long-term store of value (SOV) amidst rising local inflation rates (of around 18%).

However, earlier this year, the Central Bank of Nigeria (CBN) released an official statement making it clear that all financial institutions — including fintech start-ups — operating within the country’s borders were required to cease all of their crypto-related activities with immediate effect. In fact, the ban’s conditions were so severe that any individual found guilty of violating the government’s orders could lose all access to all of their banking services, rendering them completely useless financially.

In closing

In addition to the countries listed above, there are many other nations that have also employed similar tactics to curb their local crypto industries. For example, the Indian government has been flirting with the idea of ceasing all crypto activities within its borders, with a draft bill even being proposed in regard to the same. Similarly, countries like Bolivia and Ecuador have had a ban on all forms of digital asset trading since 2014. Thus, as we move into a crypto-enabled future, it will be interesting to see how regulations across the globe continue to evolve.

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