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6 Countries Exactly where Bitcoin Is Banned

Even so, bitcoin's ascent hasn't been without some notable speed bumps. Because it really is not backed by a central bank or government, it really is frowned upon in specific countries. For example, earlier this year China outlawed initial coin offerings, which frequently involve exchanging bitcoin for newly issued virtual currency. The financial giant also announced the closure of domestic cryptocurrency exchanges. Whilst it hasn't outlawed bitcoin, China has produced trading or owning bitcoin a genuine challenge for its citizens -- and bitcoin is banned for banking institutions.
Bitcoin Is Banned

6 Countries that just say "No" to bitcoin

  1. Bolivia: Back in June 2014, the Bolivian central bank officially banned any currency or coins that are not regulated by the government. Included in its list of examples was bitcoin. Bolivia's central bank also prohibited its citizens from denominating prices in any currency tha its national institutions haven't previously authorized.
  2. Ecuador: Not long after Bolivia's central bank banned bitcoin, Ecuador also removed its welcome mat in July 2014. The country's National Assembly of Ecuador banned bitcoin along with other digital currencies while laying the framework for the creation of a new, state-run currency. In other words, the government has the permission to create payments in electronic money, but other digital currencies, like bitcoin, are banned for its citizens.
  3. Kyrgyzstan: In July 2014, the National Bank of the Kyrgyz Republic created it crystal clear that using bitcoin, or any digital currency, as a form of payment is illegal. The only legal tender in Kyrgyzstan may be the som, the country's national currency. The Kyrgyz National Bank cited that bitcoin's lack of governmental backing tends to make public or private regulation virtually impossible.
  4. Bangladesh: Bangladesh also followed suit in September 2014. The Bangladeshi central bank cited bitcoin's lack of a central payment system because the cause behind the ban, which it believes would allow folks to become "financially harmed." Long story quick -- if you're caught trading in bitcoin in Bangladesh, it could lead to legal problems under the Foreign Currency Control Act of 1947 and the Money Laundering Control Act of 2012.
  5. Nepal: Even though it might not be a well-known fact throughout the country, bitcoin is illegal in Nepal, according to Kedar Prasad Acharya, the deputy director of Nepal Rastra Bank. The Nepalese government banned bitcoin on account of not having the ability to track its transactions, and it has gone so far as to arrest individuals suspected of trading bitcoin.
  6. Morocco: The newest ban, coming as of November 2017, was in Morocco, which ironically came just days after domestic digital services provider MTDS announced that it would accept bitcoin as payment for the very first time. Like the other countries before it, Morocco's central bank cited "a hidden payment system which is not backed by any monetary institution" as its reasoning for banning bitcoin as well as other digital currencies.

And soon we might be adding Russia towards the list. The country's deputy finance minister, Alexey Moissev, noted in September that payments made in cryptocurrencies could soon be banned.

See also How to cash your bitcoins