5 Countries Are Having the Most Issues With Cryptocurrency

Bitcoin and the other cryptocurrencies that followed it have been a source of contention since their inception in 2009

Despite the fact that cryptocurrency is frequently criticized for its volatility, use in illegal transactions, and the massive amount of electricity required to mine it, some people, particularly in the developing world, see it as a safe haven during economic storms.

In September 2021, El Salvador became the first country to legalize it. In April of this year, the Central African Republic became the second country to do so.

However, as more people use cryptocurrency as an investment or a means of subsistence, critics have devised new ways to limit how they can be used.

The law regarding Bitcoin and other "altcoins" (coins similar to Bitcoin) varies greatly from country to country, and in some cases, the relationship between the two is still unclear or constantly changing.

Even though it is not illegal in most countries to use Bitcoin, its status as a form of payment or a commodity varies, and this has different regulatory implications.

Some countries have restricted the use of Bitcoin, and some banks have informed their customers that they cannot buy or sell Bitcoin. Other countries have outlawed Bitcoin and other cryptocurrencies, making it extremely difficult for anyone to use or transact with them.

These 5 Countries Are Having The Most Issues With Bitcoin And Other Cryptocurrencies

Cryptocurrencies

China

Since 2021, China has been tightening its grip on cryptocurrencies. Chinese officials have repeatedly warned their citizens to avoid the digital asset market. They have also imposed severe restrictions on mining and currency exchanges in China and around the world.

On August 27, Yin Youping, deputy director of the People's Bank of China's (PBoC) Financial Consumer Rights Protection Bureau, referred to cryptocurrencies as "speculative assets" and advised citizens to "protect their pockets."

People believe that China is attempting to launch their own e-currency by undermining Bitcoin, a decentralized currency that is not controlled by governments or institutions.

The PBoC aspires to be one of the world's first major central banks to issue its own digital currency. This would allow it to keep a closer eye on the transactions of its employees.

Egypt

Dar al-Ifta, Egypt's main Islamic advisory body, issued a religious decree in 2018 declaring Bitcoin transactions "haram," which means they violate Islamic law. Even though they are not legally binding, Egypt's banking laws will become stricter in September 2020 to prevent people from trading or promoting cryptocurrencies without a Central Bank license.

Bangladesh

It is unclear how Bangladesh feels about cryptocurrencies. Officially, there are bans, and cryptocurrency transactions are punishable by up to 12 years in prison under the country's anti-money laundering and terrorism-funding laws. However, the country has proposed a new blockchain strategy, indicating that it is warming to cryptocurrency and virtual assets. Additionally, there have been no credible reports of people being convicted for using cryptos.

Iraq

Despite the government's efforts to discourage their use, cryptocurrencies are becoming increasingly popular in Iraq. The Iraqi Central Bank has been particularly hostile to them. It was stated in 2017 that they could not be used, and that rule is still in effect today. Early in 2021, the Kurdistan regional government's Ministry of Interior informed money brokers and exchanges that they could not handle cryptocurrencies.

Bolivia

Bolivia has had a complete ban on the use of Bitcoin since 2014. The Bolivian Central Bank outlawed it, as well as all other currencies not controlled by a country or economic zone.