Since its appearance in 2009, Bitcoin has been one of the most controversial assets, closely followed by a number of other cryptocurrencies that appeared shortly after.
Bitcoin is an extremely volatile asset and its use is subject to many restrictions. Some see cryptocurrencies as a safe investment in uncertain economic times, while others consider the use of digital currencies to be unreliable.
The legal status of Bitcoin and other cryptocurrencies varies around the world. In the West, cryptocurrencies are quickly becoming a popular way to buy goods, but in other countries, the digital currency is completely banned.
In this article, we take a look at the countries where Bitcoin use is banned and the reasons behind these decisions.
In Bolivia, Bitcon was completely banned in 2014. The ban was imposed by the Bolivian central bank. It had passed a resolution banning Bitcoin along with all other non-regulated currencies.
This ban was imposed to protect the Boliviano (Bolivia’s national currency) and to protect users from losing their assets. After this decision, other South American countries such as Colombia also considered banning Bitcoin.
In 2021, China took intensive measures to crack down on the use of cryptocurrencies in the region. These measures include restrictions on bitcoin mining in the country and the restriction of crypto exchanges in China and abroad.
Many believe that China’s crackdown on Bitcoin is an attempt by the Chinese government to issue its own digital currency. However, the official reason for the restrictions is to protect finances and better monitor transactions by Chinese citizens.
The use of Bitcoin and other cryptocurrencies as a means of payment was banned by Bank Indonesia in 2018. While the assets cannot be used as payment, it is still possible to trade cryptocurrencies as commodities in the country.
In Indonesia, cryptocurrencies are believed to enable the operation of illegal platforms. With this ban, the government wants to fight against such platforms. Binance is illegal in the country because the crypto exchange does not have a license.
In Vietnam, it is illegal to use Bitcoin as a means of payment. Those who violate these rules can face a hefty fine. However, it is still possible to use Bitcoin to trade and hold the currency as an asset.
The country has banned the use of Bitcoin as a means of payment to protect its economy from currencies that are not regulated by the government. Through this measure, it is hoped to protect the country’s economy from market volatility.
To this day, Bitcoin and other cryptocurrencies have high volatility and are still considered risky by many economies. Despite all the bans on using Bitcoin for purchases, Bitcoin trading is still very active in all these countries.
The restrictions on cryptocurrencies in these countries raise the question: Could a cryptocurrency ever become the world’s major currency?