Here are the countries that have banned cryptocurrencies in the past year

Last week, the High Court of Sindh, Pakistan hold A hearing on the legal status of digital currencies could lead to an outright ban on cryptocurrency trading and penalties for cryptocurrency exchanges.A few days later, the Central Bank of Russia Call Crypto trading and mining operations are prohibited. Both of these countries could join a growing list of countries that have begun to outlaw digital assets, which already includes China, Turkey, Iran, and several other jurisdictions.

according to a Report According to the U.S. Library of Congress (LOC), there are currently nine jurisdictions with absolute bans on cryptocurrencies and 42 with implied bans. The report’s authors highlight a worrying trend: The number of countries that have banned cryptocurrencies has more than doubled since 2018. Below are the countries that have banned certain cryptocurrency-related activities or announced their intention to do so in 2021 and early 2022.

Bolivia

Bolivia’s Central Bank (BCB) issued its first cryptocurrency ban resolution at the end of 2020, but the ban will not come into effect until January 13, 2022. officially approved. The wording of the latest ban specifically […] Crypto Assets. ”

The regulator justified the move for investor protection. It warned of “potential risks of economic loss to China” […] holders” and stressed the need to protect Bolivians from fraud and scams.

China

China has officially banned cryptocurrency trading since 2019, but it was only last year that the government took steps to crack down on cryptocurrency activity.several officials Risk Warning A close second in relation to crypto investments is Ban cryptocurrency mining and Ban National Bank Facilitate any operation using digital assets. But the key announcement came on Sept. 24, when major state regulators held a concert. swear Jointly enforce a ban on all crypto trading and mining.

In addition to the usual notions of money laundering and investor protection, Chinese officials are playing the green card in their fight against the mining industry, a bold move for a country that contributes as much as 26% of global carbon dioxide emissions, with crypto Mining represents a marginal share.

Indonesia

On November 11, 2021, the Indonesian National Ulema Council (MUI), the highest Islamic academic institution in the country, Declaring that cryptocurrencies are holy places, or banned for religious reasons. MUI’s instructions are not legally binding and therefore do not necessarily stop all cryptocurrency transactions. However, it could deal a major blow to the cryptocurrency sector in the world’s largest Muslim country and influence future government policies.

The MUI’s decision reflects a common interpretation developed in jurisdictions influenced by Islamic legal traditions. It sees crypto activity as gambling — a concept that arguably can be used to define almost all capitalist activity.

Jan. 20 Religious anti-crypto push further Several other Indonesian Islamic NGOs, the Taji Council and the central executive of Muhammadiyah, Tajdid. They affirmed cryptocurrencies’ shrine status by issuing a fatwa (a ruling under Islamic law) addressing their speculative nature and their lack of ability to act as a medium of exchange according to Islamic legal standards.

Nepal

9 September 2021, Nepal Rastra Bank (NRB) release A notice titled “Cryptocurrency trading is illegal.” Referring to the National Foreign Exchange Act of 2019, the regulator announced that cryptocurrency trading, mining and “encouraging illegal activities” will be subject to legal sanctions. The NRB separately stressed that individual users are also responsible for breaches related to crypto trading.

Ramu Paudel, executive director of the NRB’s foreign exchange management department, in a statement highlighted the threat of “scams” to the general public.

Nigeria

Nigeria’s national digital asset policy was consolidated on February 12, 2021, when the Nigerian Securities and Exchange Commission announced a moratorium on all planned cryptocurrency regulation, after Central Bank Ban Launched a week ago. The country’s central bank ordered commercial banks to close all cryptocurrency-related accounts and warned of penalties for non-compliance.

First Financial’s explanation for the crackdown list Some familiar issues such as price volatility and the potential for money laundering and terrorist financing. Meanwhile, CBN President Godwin Emefiele statement Central banks remain interested in digital currencies, and governments are exploring various policy options.

Turkey

April 20, 2021, Bitcoin price (bitcoin) fell 5% after Turkey’s central bank Announce “Cryptocurrencies and other such digital assets” cannot legally be used to pay for goods and services.

As explained, the use of cryptocurrencies could “cause irreparable damage to all parties involved” […] and include factors that could undermine confidence in current payment methods and instruments”. But that’s just the beginning – a series of arresteds Crypto fraud suspect, and Turkish President Recep Tayyip Erdoğan personally announced The war on cryptocurrencies.

related: Bitcoiners disappointed as Turkey and El Salvador presidents meet

December 2021, Erdogan Announce National cryptocurrency regulations have been drafted and will soon be presented to Parliament. In the thriller, the president said the legislation was designed with the participation of crypto industry stakeholders. The exact nature of the regulatory framework remains unknown.

Russia

In a report for public discussion dated January 20, 2022, the Central Bank of Russia propose a blanket ban Over-the-counter (OTC) cryptocurrency exchanges, centralized and peer-to-peer cryptocurrency exchanges, and a ban on cryptocurrency mining. Regulators have also floated the idea of ​​penalties for violating those rules.

In the argumentative section of the report, the CBR compared crypto assets to Ponzi schemes and listed issues such as volatility and the financing of illicit activities, as well as undermining “the Russian Federation’s environmental agenda.” But perhaps the most relevant reason is fear of a potential threat to Russia’s “financial sovereignty.”

How bad is it all?

It’s hard not to notice that many of the countries on this list represent some of the most active crypto markets: China needs no introduction; Nigeria is Largest source of Bitcoin transaction volume in Africa; Indonesia On Binance’s Radar as an extension target; and Turkey sees rising interest Bitcoin in lira free fall.

When crypto awareness and adoption reaches such a level, it is nearly impossible to ban a technology whose advantages are already known to the public. It’s also worth mentioning that in many cases, the authorities’ information about cryptocurrencies has been ambiguous, with officials publicly expressing their interest in the digital asset’s potential before and even after the ban.

Caroline Malcolm, head of international policy at blockchain data firm Chainalysis, pointed out to Cointelegraph that it’s important to be clear that “there are actually very few cases where a blanket ban is actually done.” Malcolm added that in many cases, government authorities have restricted the use of cryptocurrencies for payments, but allowed them to be used for trading or investment purposes.

Why is the government seeking a crypto ban?

The incentives for regulators to clamp down on some or all types of cryptographic operations may be driven by a variety of factors, but some recurring patterns are visible.

Kay Khemani, managing director of the Spectre.ai trading platform, highlighted the extent of political control within the country seeking to establish a crypto ban. Khemani commented:

Countries that implement outright bans are usually those with tighter social and economic control. Countries that previously banned cryptocurrencies are likely to take a second look if larger, established economies start to embrace and weave decentralized assets within their financial frameworks.

The main anxiety in countries, often hidden behind public concerns about the financial safety of ordinary people, is the pressure that digital currencies exert on sovereign fiat currencies and potential central bank digital currencies (CBDCs), especially in faltering economies. As Sebastian Markowsky, chief strategy officer at Bitcoin ATM provider Coinsource, told Cointelegraph:

The general pattern shows that countries with less stable fiat currencies tend to have higher crypto adoption rates and thus end up banning crypto as governments want to keep people invested in fiat currencies […] In China, there are rumors that the widespread rollout of a digital yuan CBDC is the real reason for the crypto ban.

Caroline Malcolm added that the drivers behind government encryption policies may change over time, so it is important not to assume that the positions these countries take today will remain the same forever.

It is hoped that, at least in some of the above-mentioned cases, the strict restrictions on digital assets will eventually serve as a moratorium for regulators to establish a nuanced and well-thought-out regulatory framework.