The digital currency bitcoin, also known as “virtual currency,” is viewed differently in various regions worldwide. Western superpowers, including the United Kingdom and the United States, have expressed enthusiasm for the new technology. However, a few countries, such as Australia and Canada, are still debating illegalizing cryptocurrency. Meanwhile, many others have already decided against it.
The growing investment in cryptocurrencies has caused economic concerns for governments worldwide, leading to a crypto ban. With situations changing speedily, it has become essential for law students to learn about different causes or issues. At times, they have to write papers on several topics, where usually they don’t know how to choose the best law dissertation topics. Writing about cryptocurrency laws can be an effective way to impress professors. So, find out more about the topic in this article.
Countries Where Cryptocurrency Is Illegal
Knowing about cryptocurrency has become crucial for business people and law students alike. Therefore, to help them stay updated, we’ve gathered the top seven countries where cryptocurrency is banned.
While it is not explicitly illegal in Vietnam, you also can’t use cryptocurrency (Bitcoin, Ether, or others) to purchase things. However, cryptocurrency mining and blockchain technology are still legal in the country for the time being.
Nobody knows for sure why Vietnam has decided to prohibit cryptocurrency in transactions. Nonetheless, some presume they are following China’s lead by preventing any currency that can’t be quickly regulated or controlled. But, of course, this is just a guess, and there could be another reason for this, which the country may or may not reveal in the years ahead.
Cryptocurrency is not outright prohibited in Egypt either, but religious law prohibits its use. According to the country’s Islamic legislation, the existence and use of bitcoin may exert a threat to national security. The Egyptian government also believes the presumed destabilization of cryptocurrencies can harm the country’s economic growth.
However, this ban doesn’t appear to be preventing Egyptians from purchasing and using cryptocurrency. Thousands of Egypt-based registrations flood crypto exchanges, prompting Egypt’s central bank warnings. It appears cryptocurrency is gaining traction everywhere!
China is a prosperous nation with a thriving cryptocurrency market to date. But, the Chinese government has decided to ban cryptocurrency trading and mining.
Since 2013, China has restricted the use of cryptocurrency through various new restrictive measures. These measures culminated in the cryptocurrency ban in September 2021. This is when the government made cryptocurrency transactions and mining illegal.
Because of these restrictive laws, all bitcoin activity has been prohibited. In addition, many exchanges declared they might no longer provide services to Chinese citizens and block any Chinese IP from accessing those services.
Currently, cryptocurrency trading is prohibited in Bangladesh because it violates its economic laws and regulations. These laws include the Foreign Exchange Regulation Act of 1947, the Anti-Terrorism Act of 2009, and the Money Laundering Prevention Act of 2012.
This signifies no purchases can be made, and no trading can be performed inside the country. Moreover, it also made authorities believe digital currencies are too much a threat, given their uncontrolled, decentralized nature.
Turkey has a cryptocurrency market. However, the government isn’t thrilled about it. Due to the associated risks, the Turkish government prohibited cryptocurrency as a payment option in April 2021.
Recep Tayyip Erdoan, Turkey’s president, clearly intend to control crypto activity by implementing a regulation bill. However, it is unclear when this bill will go into effect or what it will mean for citizens of Turkey who own cryptocurrency.
Ecuador, a South American country, strictly prohibited cryptocurrency in July 2014. Meanwhile, it also decided to generate and use its own “electric money” backed by its central bank.
Nevertheless, the rising popularity of Bitcoin in recent years has resulted in enhanced use of the coin in Ecuador, even when it is still illegal. As a result, many Ecuadorian citizens continue to buy and sell Bitcoin, and the country even has a Bitcoin community!
Under the Foreign Exchange Act, Nepal, a small nation on China’s southwestern border, declared cryptocurrency mining and trading a crime in 2019.
Traditional, unregulated cryptocurrencies are considered banned due to the Nepalese government’s investigation into a state-backed digital currency (which would be less susceptible to potential crashes). So, they may establish a new Nepalese digital currency in the coming few years.
Most Of The World Is Still Heating Up To Cryptocurrency
The bitcoin ecosystem is difficult to comprehend and navigate, particularly for those new to it. Thus, it may simply be a case of time before the countries mentioned above start to accept the use of cryptocurrency in the same way the rest of the world has.
But, who knows, such restrictions and bans may be in place for years to come. These things, such as it itself, are still unpredictable!
Furthermore, being a law student, you have to keep yourself updated and see many things from different verticals and perspectives. So, knowledge about cryptocurrency laws is as essential as other legal matters.
However, the life of a law student is usually not easy. Therefore, in such cases, you can always consider help from law dissertation writing services as this can be a great way to manage your student-work life