The recent bull run that Bitcoin experienced has resulted in many people wanting to invest in cryptocurrencies once again, with some trying to get in on the action for the very first time. In spite of the fact that this is the case, it bears mentioning that cryptocurrencies aren’t legal in every single country around the world. Quite on the contrary, some countries have placed restrictions on them, with 19 banning them outright.
With all of that having been said and now out of the way, it is important to note that China is the most notable country that has enacted restrictions on cryptocurrencies. What’s surprising is that China was the single biggest cryptocurrency hub in the world during the 2010s, with an estimated 75% of all crypto mining occurring within the East Asian nation as of 2018.
A year after this peak was hit, China banned all forms of cryptocurrency trading. The government had previously banned Initial Coin Offerings, or ICOs for short, in 2017, and these moves ended up leading to the price of Bitcoin and other crypto tokens declining somewhat. In 2021, the Chinese government took things one step further by cracking down on all crypto mining operations. When all of these restrictions were done in 2021, China’s share of crypto mining plummeted to 21% with all things having been considered and taken into account.
Another country that banned cryptocurrency is Nepal, where the national central bank declared crypto transactions to be illegal in 2017. That same year, Bangladesh issued a ban of its own and stated that the use of cryptocurrencies could result in imprisonment. The reasoning was that cryptocurrency could be used to finance terrorism and launder illegal money, and while the government implemented a National Blockchain Strategy in 2020, crypto trading or even the use of virtual currency in general is prohibited.
Over in Africa, the Egyptian government has been a vocal critic of cryptocurrencies for quite some time now, with much of the pushback coming from religious circles. This began in 2018 when religious groups claimed that virtual currencies weren’t permissible under Islam, and despite some signs in 2020 that the Central Bank is looking into regulating crypto trading, the institution reiterated previous statements against crypto in 2023. Algeria, Libya, Ghana, Sierra Leone, and many other countries close to Egypt as well as across the African continent have enacted their own bans.
In some countries, such as Pakistan and Zimbabwe, the overall legal status of cryptocurrencies is unclear.
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With all of that having been said and now out of the way, it is important to note that China is the most notable country that has enacted restrictions on cryptocurrencies. What’s surprising is that China was the single biggest cryptocurrency hub in the world during the 2010s, with an estimated 75% of all crypto mining occurring within the East Asian nation as of 2018.
A year after this peak was hit, China banned all forms of cryptocurrency trading. The government had previously banned Initial Coin Offerings, or ICOs for short, in 2017, and these moves ended up leading to the price of Bitcoin and other crypto tokens declining somewhat. In 2021, the Chinese government took things one step further by cracking down on all crypto mining operations. When all of these restrictions were done in 2021, China’s share of crypto mining plummeted to 21% with all things having been considered and taken into account.
Another country that banned cryptocurrency is Nepal, where the national central bank declared crypto transactions to be illegal in 2017. That same year, Bangladesh issued a ban of its own and stated that the use of cryptocurrencies could result in imprisonment. The reasoning was that cryptocurrency could be used to finance terrorism and launder illegal money, and while the government implemented a National Blockchain Strategy in 2020, crypto trading or even the use of virtual currency in general is prohibited.
Over in Africa, the Egyptian government has been a vocal critic of cryptocurrencies for quite some time now, with much of the pushback coming from religious circles. This began in 2018 when religious groups claimed that virtual currencies weren’t permissible under Islam, and despite some signs in 2020 that the Central Bank is looking into regulating crypto trading, the institution reiterated previous statements against crypto in 2023. Algeria, Libya, Ghana, Sierra Leone, and many other countries close to Egypt as well as across the African continent have enacted their own bans.
- Related: Try this currency converter to get near real-time exchange rates for major global currencies
In some countries, such as Pakistan and Zimbabwe, the overall legal status of cryptocurrencies is unclear.
| List Number | Country | Cryptocurrency Bans By Year Of Implementation |
|---|---|---|
| 1. | Afghanistan | Taliban banned crypto trading, August 2022. |
| 2. | Algeria | Financial Law prohibits all crypto activities since 2018. |
| 3. | Bangladesh | Bank doesn't recognize virtual currencies; crypto is illegal. |
| 4. | Bolivia | Central Bank banned crypto involvement, 2014 & 2022. |
| 5. | China | Extended restrictions in 2021: mining, transactions, foreign exchanges prohibited. |
| 6. | Egypt | Central bank warns against crypto due to high risks and financial crimes. |
| 7. | Ghana | Government upholds 2018 ban on crypto in financial transactions. |
| 8. | Iraq | Central Bank prohibited crypto, 2017; Supreme Fatwa Board ruled against OneCoin, 2018. |
| 9. | Kuwait | Capital Markets Authority banned virtual assets, including crypto, July 2023. |
| 10. | Lesotho | Central bank prohibits crypto investments as unregulated and unlicensed. |
| 11. | Libya | Central Bank deemed virtual currencies illegal, pending regulation, 2018. |
| 12. | Morocco | Ministry banned all crypto transactions, 2017; draft regulation bill announced, Jan 2023. |
| 13. | Myanmar | Central Bank banned crypto trading, 2020; shadow gov't set up crypto bank, July 2023. |
| 14. | Nepal | Central Bank banned crypto use, exchange, mining, 2017; ISPs instructed to block crypto sites, Jan 2023. |
| 15. | North Macedonia | Government completely banned crypto use since 2016. |
| 16. | Republic of Congo | Government outright banned crypto according to IMF. |
| 17. | Saudi Arabia | Financial institutions banned from crypto transactions, 2017; hired virtual assets lead, 2022. |
| 18. | Sierra Leone | Bank banned two crypto companies, 2019; no licenses for crypto deposits, trading. |
| 19. | Tunisia | Strict ban on crypto; calls for decriminalization since 2021 arrest. |
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