Introduction
As the crypto revolution gains momentum, a lot of digital currency
exchange markets have popped up. Cryptocurrencies are still limited in many
countries. There are about eight nations in which Bitcoin trading is illegal
and nearly 40 countries where virtual tokens are either banned or restricted.
In this article, we'll discuss the top five states from the above list
(excluding Venezuela).
The number of countries around the world where cryptocurrency
trading is illegal is ever increasing. This is due to international regulators
finding it challenging to monitor the still relatively new and fast-evolving
cryptocurrency market. It can also be because of economic instability or lack
of regulation in some areas of the globe.
Crypto Trading is Illegal in China & India
Cryptocurrency is legal in China, but it is illegal to engage in
crypto trading. The Chinese government is enforcing this ban through its mobile
payment systems. The government has banned the use of mobile payment systems
for cryptocurrency transactions.
Cryptocurrencies are legal in India, but they are not considered
legal tender. The Indian government has set up a committee to study
cryptocurrency regulations. This committee had proposed to ban all private
cryptocurrencies and also suggested that the government should develop an
official digital currency.
Crypto Trading is Illegal in Morocco &l in
Pakistan
Cryptocurrency trading is illegal in Morocco and Pakistan. The
Moroccan central bank has issued a notice that all cryptocurrency transactions
are illegal, and Pakistani authorities have ordered local banks to shut down
the accounts of anyone found using crypto.
Authorities in Morocco have made bitcoin trading illegal, according
to an announcement from the country's central bank. The central bank issued a
notice claiming that cryptocurrency-related trading is not in line with the
country's foreign exchange laws. According to the statement, cryptocurrency
ownership or trading is completely banned in Morocco.
The cryptocurrencies concerned are not yet known, but bitcoin will
likely be included in this ban. In January 2018, the Central Bank of Morocco
issued a statement condemning bitcoin as a risky investment while acknowledging
its growing popularity among Moroccans. The institution went so far as to watch
over exchanges operating within the country's borders.
The State Bank of Pakistan (SBP) has issued a circular prohibiting
all banks, payment service providers, and microfinance institutions from
dealing in cryptocurrencies, including facilitating any individual or entity in
buying or selling cryptocurrencies.
The central bank of Morocco, Bank al-Maghrib, has warned the public
against trading in cryptocurrencies. The ban was announced on Monday when the
regulatory authority released a statement saying that the use of virtual money
such as Bitcoin is not backed by any financial authority and therefore not
subject to any regulation.
Crypto Trading is Illegal in Nepal
The central bank of Nepal has issued a directive that prevents
financial institutions from dealing in cryptocurrency. The move follows the
government's announcement of plans to introduce its digital currency, which it
said would address concerns over the 'illegal' nature of crypto trading.
The Himalayan country's central bank, Nepal Rastra Bank (NRB), has
announced a ban on cryptocurrency dealings by financial institutions and
payment service providers, according to the Kathmandu Post newspaper.
Financial institutions have been prohibited from "dealing with
transactions of cryptocurrencies like bitcoin", NRB said. The move comes
after the government reportedly banned crypto trading earlier this year.
The central bank has also directed payment service providers
including banks to ensure that they do not facilitate payments with
cryptocurrencies.
The public notice issued by NRB last week gives those who currently
trade or deal in cryptocurrencies up to 15 days to wind down operations and
exit the market. NRB warned that it would initiate strict legal action against
individuals caught dealing in cryptocurrencies
The statement by Nepal Rastra Bank is a follow-up to an earlier one
published on April 4, which banned all forms of cryptocurrency transactions in
the country. However, at the time, the general public was not aware of any such
directive from the central bank.
Conclusion
While crypto trading is banned in five countries, it's important to
point out that this doesn't mean that trading is illegal from the perspective
of private citizens. The use of cryptocurrencies as a means of payment is not
illegal in any country currently, no matter what the stance of the government
may be on crypto trading itself.
Every nation has different rules and laws, and part of the
challenge is to stay within these laws. Even though a certain country imposes
legal restrictions on local coin exchanges, there are often ways to overcome
them. But, even so, you should always be careful while trading coins anywhere
in the world.
The majority of countries, 60 percent, maintain a “blanket ban” on
all forms of cryptocurrency trading and usage. These nations are typically
under the control of a totalitarian regime with little regard for individual
privacy and financial freedom.
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