Cryptocurrency has come a long way since Bitcoin’s launch in 2009. Initially, there were no clear regulations, and governments were unsure how to handle digital currencies. By 2013, regulatory bodies like the U.S. Financial Crimes Enforcement Network (FinCEN) started classifying cryptocurrencies, setting the stage for global responses.
More recently, the European Union introduced the Markets in Crypto-Assets (MiCA) framework, aiming for standardized crypto regulations. However, some nations have gone in the opposite direction, implementing outright bans.
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China: The Relentless Crackdown Continues
China has been one of the most aggressive nations in restricting cryptocurrency. The government first banned ICOs in 2017 and then cracked down on exchanges and mining operations. In 2021, all crypto transactions were deemed illegal, with officials citing risks to financial stability, capital flight, and fraud.
Despite the ban, underground trading thrives. China still ranked 20th in the 2024 Chainalysis Global Crypto Adoption Index, proving that many users find ways around restrictions. Meanwhile, the country continues to push its state-backed digital yuan, aiming to replace decentralized digital currencies with a controlled alternative.
Egypt: A Ban Rooted in Economics and Religion
Egypt’s Central Bank (CBE) has maintained a strict stance against cryptocurrency, warning against its volatility, potential for money laundering, and lack of oversight. However, unlike China, Egypt’s ban is also influenced by religious interpretations. Some Islamic scholars have classified cryptocurrency as haram (forbidden), given its speculative nature.
Despite the restrictions, crypto interest persists. Many Egyptians rely on peer-to-peer (P2P) trading to bypass the official ban. The government continues to weigh financial risks against innovation, leaving the future of crypto regulation uncertain.
Algeria: No Room for Digital Assets
Algeria has outlawed cryptocurrency, citing threats to financial security and economic stability. Since 2018, ownership and transactions have been strictly prohibited, with officials emphasizing concerns over money laundering and terrorist financing.
Still, as seen in other banned regions, crypto adoption has not completely disappeared. Many Algerians continue to access digital currencies through unofficial channels, challenging the effectiveness of the ban.
Bangladesh: Harsh Penalties for Crypto Use
Bangladesh first declared digital assets illegal in 2017, warning citizens about the risks of fraud and illicit activities. The Bangladesh Bank reinforced its stance by making violations punishable by fines and imprisonment.
Despite these severe consequences, cryptocurrency adoption persists. Bangladesh ranked 35th in the 2024 Global Crypto Adoption Index, indicating that many individuals are willing to take risks to use digital assets.
Nepal: Zero Tolerance for Digital Currency
Nepal remains one of the strictest anti-crypto nations. The Nepal Rastra Bank has explicitly banned all cryptocurrency trading and transactions, citing financial instability and fraud risks.
Authorities have actively cracked down on crypto-related operations, arresting traders and shutting down unauthorized exchanges. However, the decentralized nature of digital assets makes complete enforcement nearly impossible.
Afghanistan: A Financial Lifeline Cut Short
Cryptocurrency was once a financial lifeline for many Afghans, especially after the Taliban’s takeover in 2021. Amid a collapsing economy and banking restrictions, digital assets provided a way to receive remittances and preserve wealth.
That changed in 2022 when the Taliban imposed a ban, citing financial instability and fraud concerns. Authorities shut down crypto exchanges in Herat and arrested several operators, making transactions highly risky. Despite this, some Afghans continue to use digital currencies discreetly.
Morocco: A Ban in Transition?
Morocco banned cryptocurrency transactions in 2017 due to concerns over financial crimes and economic stability. Yet, the country has remained a leader in peer-to-peer Bitcoin trading in Africa.
Recognizing the persistent use of digital assets, Moroccan authorities are now considering regulation. Bank Al-Maghrib has drafted a law to oversee crypto assets while also exploring a central bank digital currency (CBDC). This shift suggests that Morocco may soon ease its restrictions.
Bolivia: A U-Turn on Crypto Policy
Bolivia was once among the strongest anti-crypto nations, with its central bank banning digital assets in 2014. However, in June 2024, authorities reversed their stance, allowing financial institutions to process crypto transactions through approved channels.
This shift reflects a regional trend where governments are opting for regulation over prohibition. As a result, Bolivia no longer fits the category of a strictly banned crypto market.
Iraq: Crypto Prohibited, But Not Gone
Iraq has maintained a ban on cryptocurrency since 2017, citing risks of financial crime, market volatility, and consumer protection. The central bank prohibits banks, financial institutions, and payment service providers from dealing with digital assets.
However, informal trading continues. Despite the official restrictions, enforcement remains inconsistent, leading to a legal grey area where individuals still access cryptocurrency through underground networks.
Russia: A Ban With Exceptions
Russia’s approach to cryptocurrency is complex. In 2022, the Central Bank of Russia (CBR) proposed a total ban on crypto transactions and mining, but the government opted for regulation instead.
By 2024, Russia had legalized crypto mining and permitted digital assets for international payments to navigate Western sanctions. President Vladimir Putin signed new laws, effective between September and November 2024, establishing a framework for cross-border transactions while maintaining a ban on domestic crypto payments.
Plans for state-backed crypto exchanges in Moscow and St. Petersburg are also in progress, reflecting a broader strategy to reduce reliance on the U.S. dollar. While cryptocurrency remains restricted within Russia, its role in international trade is expanding.
The Impact of These Bans on Global Adoption
The continued restrictions on cryptocurrency in these countries highlight broader concerns over financial stability, regulation, and government control. Some nations prioritize economic oversight, while others impose bans for political and ideological reasons.
However, one undeniable trend persists: bans do not eliminate cryptocurrency usage. Underground adoption remains strong, proving that decentralized digital assets are difficult to regulate completely. Even in banned markets, individuals find ways to trade and store digital assets, often using peer-to-peer networks or decentralized finance (DeFi) solutions.
On the other hand, countries like Bolivia and Russia have shown that bans are not always permanent. As the global financial landscape evolves, some nations are shifting toward regulated frameworks rather than outright prohibition.
Read also: The Pakistan Crypto Council Launched to Join the Global Crypto Adoption Race
