Bitcoin has been controversial since its inception in 2009, as have subsequent cryptocurrencies that followed.
While widely criticized for its volatility, its use in nefarious transactions, and the exorbitant use of electricity to mine it, some, particularly in the developing world, see Bitcoin as a safe haven during economic storms.
But as more people turn to cryptocurrencies as an investment or as a lifeline, these problems have manifested in a number of restrictions on its use.
The legal status of Bitcoin and other altcoins (alternative currencies to Bitcoin) varies substantially from country to country, while in some, the relationship remains poorly defined or is constantly changing.
While most countries do not make the use of Bitcoin illegal, its status as a means of payment or as a commodity varies with different regulatory implications.
Some countries have imposed limitations on how Bitcoin can be used, and banks prohibit their customers from transacting with cryptocurrencies. Other countries have banned the use of Bitcoin and cryptocurrencies entirely with heavy penalties for anyone transacting with cryptocurrencies.
These are the countries that have a particularly strained relationship with Bitcoin and other altcoins.
Algeria
Algeria currently bans the use of cryptocurrencies following the passage of a financial law in 2018 that made it illegal to buy, sell, use or hold virtual currencies.
Bolivia
There is a complete ban on the use of Bitcoin in Bolivia since 2014. The Central Bank of Bolivia issued a resolution that prohibits it and any other currency not regulated by a country or economic zone.
porcelain
China has cracked down on cryptocurrencies with increasing intensity throughout 2021. Chinese officials have repeatedly issued warnings to its people to stay away from the digital asset market and cracked down on mining in the country as well. such as currency exchanges in China and abroad.
On August 27, Yin Youping, deputy director of the Financial Consumer Rights Protection Office of the People's Bank of China (PBoC), referred to cryptocurrencies as speculative assets and warned people to "protect your pockets."
Efforts to undermine Bitcoin, a decentralized currency outside the control of governments and institutions, are largely seen as an attempt by the Chinese authorities to float their own electronic currency.
The PBoC seeks to be one of the world's first major central banks to launch its own digital currency, and by doing so, it could more closely monitor the transactions of its people.
On September 24, the PBoC went further and cryptocurrency transactions totally prohibited in the country.
Colombia
In Colombia, financial institutions cannot facilitate Bitcoin transactions. The Financial Superintendency warned financial institutions in 2014 that they cannot "protect, invest, negotiate or manage virtual money operations."
Egypt
Egypt's Dar al-Ifta, the country's top Islamic advisory body, issued a religious decree in 2018, classifying Bitcoin transactions as "haram," something forbidden by Islamic law. While not binding, Egypt's banking laws were tightened in September 2020 to prevent trading or promoting cryptocurrencies without a license from the Central Bank.
Indonesia
Bank Indonesia, the country's central bank, issued new regulations prohibiting the use of cryptocurrencies, including Bitcoin, as a means of payment as of January 1, 2018.
Iran
Bitcoin has a complex relationship with the Iranian regime. To evade the worst impact of crippling economic sanctions, Iran has turned to the lucrative practice of Bitcoin mining to finance imports.
While the Central Bank prohibits the trading of cryptocurrencies mined abroad, it has encouraged Bitcoin mining in the country with incentives.
About 4.5 percent of the world's Bitcoin mining takes place in Iran, which, according to blockchain analytics firm Elliptic, could represent revenue of more than $ 1 billion (โฌ 843 million).
For the crypto industry to prosper, Iran has offered cheap energy to licensed miners, but requires that all mined cryptocurrencies be sold to the Central Bank.
However, unlicensed mining drains more than 2GW from the national grid every day, causing power outages.
To this end, the Iranian authorities issued a four-month ban on Bitcoin mining until September 22.
India
While it has yet to act or has not stated its intention to ban Bitcoin and other altcoins, India is becoming increasingly hostile towards cryptocurrencies.
Earlier this year, it considered criminalizing the possession, issuance, mining, trading, and transfer of crypto assets. Since then, this stance has been softened and lawmakers are now considering a series of new regulations to deter investment in crypto assets at the end of November. This could mean that the government will only allow digital currencies that have been previously approved by the government to be listed and traded on exchanges.
Iraq
Despite sustained efforts by authorities to block their use, cryptocurrencies are becoming increasingly popular in Iraq. The Central Bank of Iraq has been particularly hostile, issuing a statement in 2017 prohibiting its use, which is still in effect to this day. In early 2021, the Interior Ministry of the Kurdistan regional government issued similar guidance to stop brokerages and exchanges handling cryptocurrencies.
Nepal
The Nepal Rastra Bank declared Bitcoin illegal as of August 2017.
North macedonia
North Macedonia is the only European country so far that has an official ban on cryptocurrencies, such as Bitcoin, Ethereum, and others.
Russia
While cryptocurrency is not banned in Russia, there is an ongoing conflict against its use.
Russia passed its first laws to regulate cryptocurrencies in July 2020, which for the first time designated cryptocurrency as taxable property.
The law, which came into effect in January this year, also prohibits Russian officials from owning crypto assets.
Russian President Vladimir Putin has repeatedly linked cryptocurrency to criminal activity, calling for increased attention to cross-border crypto transactions in particular.
In July, the attorney general announced a new bill that would allow police to seize crypto deemed illegally obtained, citing its use in bribery.
Turkey
Many in Turkey turned to cryptocurrencies when the Turkish lira plummeted in value. With some of the highest levels of use worldwide, the arrival of regulations was swift this year as inflation peaked in April.
On April 16, 2021, the Central Bank of the Republic of Turkey issued a regulation that prohibits the use of cryptocurrencies, including Bitcoin, directly or indirectly, to pay for goods and services. The next day, Turkish President Recep Tayyip Erdoฤan went further and issued a decree trading crypto to a list of companies subject to anti-money laundering and terrorist financing rules.
Vietnam
The State Bank of Vietnam has declared that the issuance, supply and use of Bitcoin and other cryptocurrencies are illegal as a means of payment and are subject to fines ranging from 150 million VND (โฌ 5,600) to 200 million VND (โฌ 7,445) . ).
However, the government does not prohibit trading Bitcoin or holding it as an asset.
