Cryptocurrency still illegal in many countries

In extreme cases, countries have introduced penalties for trading cryptocurrencies, such as capturing of assets, blocking bank accounts, and even jail time.

While most of the world appreciates how well advanced cryptocurrencies have become, many still refuse to embrace it. Japan recently allowed 11 companies to carry out cyrptocurrency exchanges and passed laws to provide a secure environment for its users as well. UK also announced the soon-release of a debit card for carrying out cryptocurrency transactions. On the other hand, some countries are taking action against cryptocurrencies, including Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Nepal, and China.

The reason behind the outlawing of cryptocurrency by various governments is that it threatens the power of the government. Governments cannot easily cease the perpetuating blockchain trend, however, they are making sure that it is excessively difficult for their citizens to invest in them.

In extreme cases, countries have introduced penalties for trading cryptocurrencies, such as capturing of assets, blocking bank accounts, and even jail time. On August 13, 2017, Nepal's Rastra Bank announced the banning of Bitcoin and other cryptocurrencies, under the Nepal Rastra Bank Act. More than a dozen people have been arrested for this so called ‘crime’ after the passing of the act.

The Himalayan Times published that two people were arrested on October 23, 2017 by the Central Investigation Bureau (CIB) of the Nepal Police for running a bitcoin racket. The company was registered under the name of Bitsewa Pvt. Ltd., claiming to be "Nepal’s First Bitcoin Company and Digital Assets Exchange".

Similarly, Bolivia, Bangladesh, and Ecuador have also turned against cryptocurrencies. Cryptocurrencies were banned in Bolivia in 2014, after which they were heavily traded underground in order to escape official regulations. Ecuador banned bitcoin, giving the excuse that it wanted to tether it to Ecuadorean dollar. Since this was not possible, the government employed the only technique it had to control it, and banned the cryptocurrency. Likewise, Bangladesh gave the excuse of cryptocurrencies being a haven for money laundering. Both countries banned the virtual currencies in 2014.

In contrast, Venezuela has provided a more independent atmosphere for its bitcoin users. The country has been facing inflation and a major downturn in the economy. Cryptocurrency has provided citizens with a platform that they can trust in this time of crisis.

Even with such actions being taken against cryptocurrencies, people are still willing to invest in cryptocurrencies as their diversity and flexibility have proven it to be a very sustainable and secure form of investment. Its flexibility was proven when the superpower, China, turned its back against cryptocurrency and banned all exchanges in the country. The trend of cryptocurrency was expected to collapse but it still flourished and the exchanges simply transferred to other countries.


Tailored Web3 Solutions For Blockchain Startups