10 countries that banned cryptos calling them threats, ponzi schemes & more

Cryptocurrencies have caught the imagination of investors apart from tech enthusiasts – in a very short period of time. Now, there are as many as 20,000 such currencies in circulation. Yet, most governments tend to view it with suspicion, and a few have even gone ahead and banned them.


As per the Law Library of Congress, a global research directorate, eight jurisdictions had an absolute ban, and 15 jurisdictions with an implicit ban on cryptos in 2018. In November 2021, it grew to nine jurisdictions with an absolute ban and 42 with an implicit ban. And, the list keeps growing.


The monetary authority of Singapore is expected to broaden its crypto regulations soon. Many of India’s neighbors like Nepal and Bangladesh too have banned them.


India slapped a 30% tax on cryptos earlier this year, along with a 1% TDS on all crypto transactions. However, the government also said that it does not mean that it is legally recognizing it. Its central bank however has no doubts and keeps insisting on a ban.


"In view of the concerns expressed by the RBI on the destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country, the RBI has recommended framing of legislation on this sector,” said Nirmala Sitharaman India’s finance minister said on July 18.


Here are the top ten countries that have already instituted a ban on cryptocurrencies.
Nepal
The Ministry of Communications and technology directed Nepal Telecommunications Authority to implement a ban on the use of cryptocurrencies in July 2019 citing an increased risk of fraud and illegal outflow of the country's domestic capital.
Bangladesh
Bangladesh banned trading in all virtual currencies in 2017 saying cryptos lead to terror funding and money laundering. It’s also illegal to mine cryptos in this Asian country.
Indonesia
Indonesia’s Financial Services Authority said in 2022 that firms are not allowed to trade any crypto assets. The government advised citizens against crypto ‘Ponzi schemes’.
North Macedonia
There is a complete ban on the usage of cryptocurrencies in North Macedonia since 2016, making it the only European country to do so. The governor of the National Bank of Macedonia said all international payments are done by banks, so crypto is illegal.
Russia
Russia’s love-hate relationship with crypto came to an end with Prime Minister Putin banning crypto in 2022. Putin declared cryptos a threat to financial stability.
Qatar
Cryptocurrencies have been banned in the Qatar Financial Center since 2018. The country said that this is to “ensure the safety of the financial and banking system”. Calling it highly volatile and subject to hacking, the country also banned bitcoin trading the same year, saying penalties will be imposed on companies who indulge in them.
Bolivia
The Bolivian central bank placed a complete ban on crypto tokens in 2022, although the country already prohibited cryptocurrency usage since 2014. Bolivia took this step stating that citizens could encounter major financial losses and fall victim to “scams”. Even though it’s not considered a crime, Bolivia does not support any crypto brokers.
Algeria
The central bank of Algeria prohibited the use of all cryptocurrencies because they are largely unregulated and volatile. The law was passed in 2018.
Morocco
Cryptocurrencies have been shunned in Morocco since 2017, becoming the first African country to do so. The reason they banned crypto is still vague, only highlighting its ‘illegal’ aspect. Although peer-to-peer bitcoin trading is still prevalent in the country.
Ghana
Ghana’s securities and exchange commission termed cryptocurrencies illegal in 2020, banning their use. The Bank of Ghana has also not recognised crypto legally, also discouraging the use of cryptocurrencies. However, the government of Ghana is still open to regulating crypto in the near future.