The geography of the blockchain and the cryptocurrencies continues to grow, however, several countries have turned out to be crypto-skeptical and for good reason, or at least according to them. While some accept the ICOs, others prohibit the exchange of cryptocurrencies, a few chase the cryptocurrency miners, and a country has just banned everything related to cryptocurrencies, at least for the time being. We present a selection of the country’s most hostile to cryptocurrencies.
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The legitimacy of the cryptocurrency negotiation is questioned not only by the government, but also by the country’s religious leader. In the case of Egypt, it directly influences state regulations. The cryptocurrency negotiation is prohibited in Egypt under Islamic law.
Although this was denied by Gamal Negm, vice governor, who said that the Egyptian banking system deals with official currencies to maintain financial stability.
The finance bill of Algeria (2018) declared the prohibition not only of the negotiation, but also of the ownership of Bitcoin and other cryptocurrencies. The country aims to introduce strict control over the matter and has already reacted to the violations of the law with sanctions in accordance with the regulations. The prohibition restricts any illegal activity linked to the use of cryptocurrencies, such as tax evasion, money laundering and drug trafficking.
China has banned ICOs, trading networks as well as cryptocurrency exchanges. These regulations are designed to control and centralize unregulated cryptocurrencies. However, the cryptocurrency negotiation has not stopped in the country.
In a developing country with a growing market economy, individual users of cryptocurrencies are persecuted by the police. Because money laundering has been a major problem in this country, several sections of the law regulate currency trading (1947) with the control and authorization of the Central Bank.
Not to mention the Central Bank of Bangladesh, which highlights the issue of the decentralized payment system as a negative influence on the financial status of the population. The money laundering control law of 2012 prohibits the trading of digital currency. If this prohibition had not existed, the money laundering issue would remain on the gray list of the Financial Action Task Force (FATF) without the 2012 control law, which establishes safeguards against money laundering.
However, there is a large diaspora of migrants who send money to their countries of origin and the use of digital currencies would facilitate an increase in the country’s income. The ban on cryptocurrencies suspended a plan by the Bitcoin foundation of Bangladesh (the first cryptocurrency foundation in Asia) to implement and develop cryptocurrencies in Bangladesh through education in the country’s official language, Bengali.
The main banks in Canada intend to prohibit their customers from using credit and debit cards to buy cryptocurrencies. Recently, the Bank of Montreal and the Dominion of Toronto announced the blocking of purchases of cryptocurrencies for their clients.
The Royal Bank of Canada has said that transactions with cryptocurrencies will be strictly limited. In addition, authorities supported Facebook’s decision to ban advertising for ICOs and Bitcoin and suggested that Google should follow suit. However, it should be noted that Facebook has already withdrawn this prohibition. Although there is no direct state ban on activities with cryptocurrencies, several economic and public organizations support restrictions in this area. In addition, Bitcoin could fall under the 2014 Law on combating money laundering and terrorist financing.