Crypto Banned around the World: Analysis and Outcomes
Cryptocurrencies and blockchain technologies have been at the center of attention lately. Countries all over the world are struggling with how to regulate cryptocurrencies and ICOs in balance to protect consumers while attracting new businesses. This article is focused on the countries that have banned cryptocurrencies, rather than those that regulate them.
Recent Crypto Bans in countries?
Two crypto ads banned in UK:
With regulatory action spiking in the new year, the United Kingdom just banned Crypto.com. The news hit the wires overnight of the UK banning 2 Crypto.com ads. According to reports, the UK’s Advertising Standards Authority has responded to a complaint.
Banned in Kosovo:
Kosovo's government, facing an energy crisis after energy production was affected by outages, introduced a ban on Tuesday on cryptocurrency mining to reduce electricity consumption.
Banned in other countries:
According to a report published by the Law Library of Congress in November of 2021, 42 countries and jurisdictions, which include Algeria, Bahrain, Bangladesh, Bolivia, and China have banned cryptocurrency in some way.
More than $2.5 trillion was generated in the crypto market last year and its growth briefly eclipsed $3 trillion in previous quarters. Countries are bringing crypto into the tax regime and enacting laws to stop money laundering and terrorist financing, a new report found.
China Banned Crypto in Phases:
Last year, China banned crypto in three phases. First, it prohibited financial institutions from dealing with crypto in May. Then China banned all domestic crypto mining in June. Last, the country outlawed cryptocurrencies outright in September.
Reason for Banning Crypto:
The governments are deeply suspicious of cryptocurrencies, fearing that they could lead to a breakdown of the global payment system.
Some governments have banned the use of crypto because they are concerned that crypto is being used to conduit money to illegal sources and that this could destabilize their financial systems.
The reasons for banning crypto are bulleted below:
- Money laundering
- Gambling Frauds
- Disruption of Economic Systems
- Lack of regulations
- Lack of central authority and experts
- Energy crisis management
- Some scholars consider it Haram (prohibited) in some Islamic countries
Effects and Outcomes of Crypto Bans:
Situation in the countries, where crypto mining and trading has been banned, is a negative development that will damagingly affect those people who were earning handsome money through crypto mining and trading.
Many citizens of countries where crypto is banned will continue to use and mine the coins, without any real possibility of profiting—though these people may develop a distrust of the government.
Countries that ban digital currencies will be missing out on a substantial amount of tax revenue and job creation opportunities.
Some users will leave the crypto market forever, while some will continue to trade in cash but become untraceable. This process will create a parallel economy that is not regulated by government authorities, as it would be a big headache for them to track and regulate these crypto activities.
However, many government organizations are expected to issue better regulations about cryptocurrency in the future. Such regulations may increase the investments and trading of cryptocurrencies in the near future after the ban lifts.Binance Free $100 (Exclusive) : Use this link to register and receive $100 free and 10% off fees on Binance Futures first month.
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