Countries where the cryptocurrencies are banned: busted for Bitcoin

Bitcoin as a threat to the economy

The main reason for prohibitions is very simple. Transfers in a currency different from the national one, lead to poor economic performance, including GDP (one of the main indicators). This way, it is easier to launder money or transfer funds outside the country. Neither banks nor payment processors will get their interest.

McCall Robison, a manager of Merchant Accounts, believes that most countries prohibit Bitcoin because it cannot be regulated. "Many governments do not like the very idea that there is another form of currency that they are not able to control. The supervision takes place on the Internet. Some countries consider it as danger to their society and government."

In general, there are many risks, and therefore some countries prohibit cryptocurrencies, either wholly or partly. In particular, the Kingdom of Nepal: the authorities have already imprisoned several crypto agents and are not done yet.

In addition to Nepal, Bolivia, Ecuador, and Kyrgyzstan have displayed strong opposition to Bitcoin.

Religion does not allow

And it's not a joke. The authors of Muslim religious texts, as it turns out, have an opinion concerning the halalness of Bitcoins and as well as of other cryptocurrencies and tokens, of course. Thus, in the Holy Koran, which was sent here 1,500 years ago with the angel Jabrail, commentators revealed incompatibility with religious tenets.

The essence consisted in speculative nature and the lack of intrinsic value. However, the latter one is not entirely true, and the speculative nature of pricing is also typical for others, more familiar assets. Perhaps, that's partly the reason why not all Muslim countries have banned cryptocurrencies, and some even promote them actively. United Arab Emirates is often called one of the most advanced Middle Eastern countries regarding cryptocommunity.

Shidan Gouran, a president, and COO Global Blockchain Technologies Corporation considers that one of the reasons for the prohibition of Bitcoin is the status of Bitcoin in Islam. "Some of the countries that have banned the Bitcoin (Indonesia, Algeria, Pakistan, Bangladesh) is mainly composed of Muslims, and there still persist the debates among Islamic scholars regarding the status of cryptocurrency in religion. If we achieve the consensus in favor of Bitcoin, there will not be any bans."

If the majority votes for a cryptocurrency, this will reduce the number of crimes. For example, in Bangladesh, the authorities don’t take the trouble to conceal that they hunt the Bitcoins traders.

Victims and survivors

In addition to those who were put on trial, many other people suffered as well. Daniel Worsley, COO LocalCoinSwap, notes that citizens of those countries where Bitcoin is prohibited are the greatest victims of this policy. "Often these laws prohibit much more than just Bitcoin; these measures are applicable to the idea of cryptocurrency in general. It will stifle innovations because many new technologies are based on the same technologies as Bitcoin itself.”

In fact, the ruling elite not only deprived the rights of the citizens forcibly but also took away their ability to trade cryptocurrencies. It is not evident that the bans have improved or at least established balance regarding economic indicators or loyalty to the authorities. Still, at the moment, Bitcoin does not represent a danger to any economy.

Market capitalization is low and, what is more important, transactions within and between countries are still performed in national or reserve currencies, neither in Bitcoin nor Ethereum. Bitcoin is popular with libertarians, cypherpunks and, of course, crypto-anarchists. Anyway, people still pay taxes and housing and communal services in dollars, euros, and rupees.

The attempts to ban unregulated things are ambiguous, and they have already resulted in casualties and loss of money of ordinary citizens. Founders and co-owners of crypto projects, crypto exchanges, and even ordinary cryptocurrency holders are among the victims.

The absence of a regulatory framework of the cryptocurrency leaves room for legal speculation and maneuvers. Unfortunately, it's not relevant to the countries where monarchs or religious fanatics rule. Therefore, not all the supporters of the cryptocurrency can expect loyalty and understanding.