Although many countries have embraced the use of cryptocurrencies to purchase goods and services, many others have taken strict stances against cryptocurrencies. This has taken the form of putting pressure on banking institutions to reject payments to and from crypto exchanges and even outright bans on any and all use of cryptocurrencies. The following are five countries that have either completely or partially banned the use of cryptocurrencies.
In 2018, Algeria passed new legislation that prohibited the purchase, sale, use of possession of virtual currency. The country defines virtual currency as a currency used by internet users over the internet that does not have physical support in the form of coins, paper money, or payments by check or credit cards.
In 2014, Bolivia passed legislation outlining the ban of any currency not issued by the country’s monetary authority. According to the statement from the Central Bank of Bolivia, virtual currencies do not fulfill the basic economic functions of a currency as a form of payment or as a means to store value.
In 2018, Egypt’s Dar al-Ifta, the country’s Islamic legislative body, classified transactions in Bitcoin as “haram,” or prohibited under Islamic law. Although not binding, the mandate was followed up by amendments to the country’s banking laws in 2020 that prohibited issuing, dealing, or promoting cryptocurrencies without a license from the central bank of Egypt.
In April 2021, Turkey’s central bank passed legislation that prohibited the use of cryptocurrencies to purchase goods and services. The legislation did not ban investments in cryptocurrencies allowing exchanges to continue to trade cryptocurrencies and related assets.
In 2017, Nepal’s Rastra Bank Act prohibited the use of Bitcoin and other cryptocurrencies. The country has made it clear that it is serious about the legislation making several arrests over the years.