Bitcoin Forum

Many countries are trying to stop bitcoin trading and they have banned cryptocurrency from the country. But why they are doing like this? Where people are going to rich by Bitcoin, They are getting huge benefit by its. Then why government trying to pull down Bitcoin? What is the main reason? Please share your thought.

Thank You

I can think of a few reasons that they want to "ban" it and those mainly are

1) Taxation
2) Scared of Freedom

It's true that people can make huge money out of bitcoin, It is not true that the government will benefit from this because as of the moment, bitcoin doesn't have any tax on some country.
I was thinking of this reason why government really against about the bitcoin circulation.

- They wanted to know all the money movement of the people to put some tax on it. (as of the moment, only bank transaction can be monitor by the government)
- They wanted to protect people, especially newbies in trading in a big loss that they will experience because of the bitcoins volatile. Because I think that they are thinking if this happens, people who lose their money thru investment will add burden to the government.

Ahahah ....All true!

The possibility in terms of my speculation about the ban around the world, it's just a joke they make, so they expect you to dump your bitcoin, until bitcoin prices have dropped in recent months, so this is their chance to buy your bitcoin, when bitcoin touching at a cheap price, so why does every country make a joke like this ...

The main reasons why governments refuse to accept BTC in my opinion are just a few:
- they can not control it
-  can not take a tax
- and there is even a small anonymity in the crypto market  :)

1. Money laundering/corruption that also goes in with cryptocurrencies that is much harder for governments to identify and stop compared to when FIAT is used.
2. Taxes are much harder to be levied and much tax revenue is lost.
3. Pressure from corporates to stop their competition/fear of the unknown.
4. Price manipulation (it's possible, I don't personally believe it)
5. Protecting investors from the many scams and such within the market.

Those bans might be temporary. Some countries are making rules and regulations regarding cryptocurrencies. They're trying to make fiat and digital currency to co-exist. So until then, we will still see some countries to ban cryptocurrencies for a while. I can see that the government will benefit the most in the blockchain technology so in the long run we will be free from crypto bans.

It makes sense for your thinking, it could be that each country will use the bitcoin currency as the main currency of course if the whole world negotiates it, using bitcoin as the world currency, because we know that bitcoin is very good for a country with very high corruption rate. ..

The reason that ALL the countries has the interest to control their money.
It helps the financial system to be stronger, prevents people without knowledge to lose their money( stronger financial system), and the government can control the inflation and to print money if they need to.
The financial system of most of the country is stable just because the government has a control over the money, the can block suspicious movements, which helps to prevent terror and such.
Governments can't control bitcoin, so bitcoin aims to destroy the stability, and that's why the banks and governments afraid of that and are trying to block it when it's small and not so dangerous.

Constant fluctuations impact on the financial market

I agree that TAX, anonymity, freedom are the main issues that threaten governments, so they act to stop cryptocurrencies from spreading.

The thing is : 
Are you all OK with government taking TAX from you? Why is tax mandatory? I think the vision behind bitcoin/crypto is that  We will use bitcoin so that they don't take additional money from us! If we want to contribute, WE DONATE. WE CONTRIBUTE.  Why force us to do so?

Imagine an ICO, (no matter how legit or logical it would be) that is MANDATORY for everyone! isn't that stupid? TAX on crypto currencies would be such a thing.

We are already paying tax with fiat. Now the greedy rich want to take it again on crypto.  :)

especially in my country, the government is worried if bitcoin can cause an economic crisis and worsen the economic situation in our country and also the government forbids bitcoin because to prevent crimes, such as money laundering, terrorism financing, and maintaining the stability of local currency as a legitimate of payment methode.

Banning of cryptocurrencies in many countries can be associated with the fear that they have and because of it does not have any taxation. Fear is associated with the lost of banks since cryptocurrencies are decentralized and cannot be intepret by banks. Cryptocurrencies without taxes are not useful for the Government so they tend to ban it instead since it is not helping the community yet only the individual.

Because they do not recognize bitcoin in their area they know only bitcoin scams and you have nothing to do with it. and maybe they fear bitcoin because they might just be foolish and do not pay. Leo Tolstoy paraphrasing in the pre-text perfectly illustrates a situation over legislative Bitcoin regulation in 2017. As it marches through the world, and more merchants accept it, each country decides whether it is on the supporters' or the contradictors' side of this battle.

The main reason why crypto is banned in many countries is because the anonymity and security of most types of cryptocurrency make it impossible for government governments to manage the assets of investors so the government does not tax collectors from these people. That loses a huge government tax. Besides the inability to manage transactions, governments feel uncomfortable when a financial market is unmanageable.

Those government must be fighting for the sake of taxation, the way we make money without the government tax being payed is an issue for many government and secondly some government are trying to guide against internet frauds. A good number of them do not have a good idea of how the money comes. And since there has been reports on how people duped online to make money, they are trying to guide against that.

Bitcoin puts full control into the peoples hand as opposed to the government.Governments are scared of bitcoin because it will eventually create a system that is more efficient than those of the central banks.And of course,Government use the central banks to implement its fiscal policies

Bitcoin is a free currency now. It is not controlled by the state. And this, in my opinion, is the main reason. The state authorities have not yet figured out how to get the tax and how to keep track of all transactions, including illegal ones.

My view is that, the government always frawn at things they don't have direct control over. This is the major thing. Then, because of the volatility of bitcoin, the government come out like a "big brother " to protect the citizen against financial loss.

I believe that the ban in many countries is associated with fear! Fear not to control financial flows, fear of openness, fear of scale, fear of rapid development! All are afraid of officials, and very rich people! Especially the director of the visas and the master of cards !!!) You just imagine what a huge flow of capitals went away ....

The main reason IMO is the possibility of losing control. When you have property that can be seized and money in the bank you are under the government's boot. You can't go against them because there's always that fear of losing everything. They can block your accounts, monitor the flow of cash, seize property... Even if they won't do it people don't want to mess with them because they can be screwed over.
When you get independent financially you gain the ability of not giving a fuck.
War? -just pack up and go to another country
Crashing economy? - the same
Have problems with the law? -same thing
Are in debt? Bailouts? -you're gone and your money with you.

For me, the only reason why some other countries ban bitcoin is they're only protecting their own national currency and also concerned for illegal transactions like money laundering activities.

Their government still think bitcoin have a lot of lacks and problem, its like become storage for money laundring, corruption and else.
And lot of speculation and its fluctuactive price make bitcoin not trustful yet

What governments are you talking about? I think only one time I heard about some country(india) banning bitcoin but that was fake news just to disturb the price. None of the actual governments have took action against bitcoin but they are probably going to do something. Either they will take advantage and somehow apply taxes to it wich is very hard either they are going to block all exchangers and bitcoin atm's. Governments are afraid that people are going to use bitcoin as a salary, as a payment method and they are not going to pay taxes anymore to the government.

The very reason is because there are a lot of scam ICOs all over the world and government wants to stop it by banning those proven scam ICOs. Even if there's a hidden agenda about this banning, this could benefit investors to eliminate fraud. And another reason that I see is they want to collect taxes from it. Since lots of money are pouring down and millions of profit are being gained by investors, then they want to collect tax from it.

Simply put it. They are envious of Bitcoin. If they never envy Bitcoin in the first place they will just leave it alone.

Reason why many countries trying to stop bitcoin trading because every goverment each country just try to save their people to being scammed and loses from investing their money to bitcoin...
that is a reasonable reason i think...

Because the bitcoin gambling in my village is very difficult to accept because all people think bitcoin it gambling

A lot of news that some countries already banned crypto currency for some reason.

1. A lot of ICO are Scam
2. They cannot regulate
3. Tax
4. They protect people from losses

#Datarius

That might be why most countries didn't officially ban it and have it banned permanently. They're purchasing some coins.

In one word fear, they are fearful, they are going to lose control of the population, governments have done a great effort to create a society in which they have most control of the activities of it, something like bitcoin threatens that, think about it, if someone came to you and asked to hand over your house will you do it? If the answer is no, then this is the same attitude governments have against bitcoin.

They main reason is that the government each country wanted to protect their economy and they do want to regulate and manipulate the circulation of the crypto currency in their country so that they could even imposed taxes on the earnings.

They see it as illegal. Because they can't charge it with tax. That's is the main reason why the government in.other country are banning bitcoin. All they think is how to take people's money. They think that public service will make their pockets full of money. So, if they can't charge tax bitcoin. Therefore they will just ban it so they don't need to worry about it.

There are two basic reason, it might possibly be the threat of crypto to countries economy. Coins were being used for transaction even the illegal one. It becomes threat because  the rate of unwanted activities are increasing. They stop it because many people are also lossing money because of scams. Another reason would be, government is not getting any benifit from it. If thet dont get anything from it, then they wont recognize it.

In my opinion the government banned exchanges not because they don't like the idea of earning additional income thru bitcoin but the fact that it can hide illegal transactions without any way to trace them. Chances are bitcoin can be a way so that corrupt officials can fulfill their illegal acts which government cannot control nor prevent. I think the idea of decentralization is a big issue why bitcoin as well as other alts will find their way to become a legal tender of the world.

The government has not get benefit on bitcoin that is why they want to ban bitcoin, I think government want to put tax on bitcoin but they do not know how to implement it and this not good for the economy so they cannot control it and end up banning bitcoin. We all know some of the users of bitcoin used it for they scheme and government want to stop it.

That's because each country has its own currency and crypto currency is something new that its regulation has not yet been set by the Government. I think the countries that banned bitcoin it is just fear bitcoin will overwhelm the country currency circulation and reduced revenue from taxes.

We all know how bitcoin couldn't be manipulated by some sorts of government. That is why we tend to create our own civilisation with it. That could be the reason why they tend to stop bitcoin. It is not about the whole thing of virtual currencies but the civilisation.

Obviously the main reason is governments want to tax you. Second is to protect banks. Somewhere waaayyy last is an attempt to "protect" people from losing money from scams.

Don't worry, most countries will realize that banning Bitcoin is pointless. Most are even going in the opposite direction and encouraging Bitcoin. You see localities that may accept taxes in Bitcoin.

Because cryptocurrency markets are not yet legally binding, they cannot be taxed, and the tax on cryptocurrency markets is staggering.
Then ICO is not well regulated and there are too many fraudulent ICO projects.

Because bitcoin is decentralized and anonymous, the government cannot control bitcoin. They believe that the development of bitcoin will affect their control of the national economy. The government can't benefit from bitcoin.

The main reason is some government like in my country they are unaware of the importance of  btc but time will prove the importance of btc and soon they will consider it as legal form of transaction and business but as earlier mention that it will take time. These days crypto currency is becoming more and more popular in the developing countries but the third world is unaware of its importance that is why.

Because they can't tax it, they want there slice of the pie.
So they ban it until, they can come up with a way they can regulate it.
They don't like the fact that they have no control over us, they control us through money. With Bitcoin they can't

its diverse,

currently most legit and supported reason is:

protection of reliable access of consumption capacities for specialised laborers

least legit reason is, proetcion of supply of laborers by established communal neofeudalists,

mass media has diverse ownership so the way society response has a mixture of elements

there are also many others, like terrism perceived needed statism

fear of loss of power,

i recently blogged an article about a generation of investment punks that is losing their power if the national banking cartels collapse

I think the underlying reason is control.The government and its various agencies cannot exercise full authority and thus leadership without some measure of control over its citizens.Crypto-currencies sorts of disrupts this balance because of its decentralized nature.If they cannot control it, then they cannot take taxes from it nor can they restrict its use in certain activities the government considers foul play.e.g money laundry.Hence the hostile approach by some government

In my opinion, the reason is:
- security and politics: The anonymity of a secret term means that it can be used for illegal transactions: drugs, tax evasion, weapons
- Banks and government: The overwhelming growth and the benefits of crypto trading make the importance of banks affected. Some people have bought crypto instead of depositing their money into the bank. Long term it will affect the benefits of the economy.
Virtual currency uses blockchain technology and anonymity. It is not controlled by any government.

You are right on point, eventually, most government will come to accept bitcoins as a legal tender and find a way to regulate it so as to collect tax from it .It may take time but the world is tending towards a decentralized system

Fear is the main reason.
Bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. That lack of central authority is the primary reason governments are afraid of the cryptocurrency. Governments control fiat currencies. They use central banks to issue or destroy money out of thin air, using what is known as monetary policy to exert economic influence. They also dictate how fiat currencies can be transferred, enabling them to track currency movement, dictate who profits from that movement and collect taxes. All of this control, interest and profit is lost when non-government bodies create their own currencies, such as cryptocurrencies. Crypto gives freedom to the people.

the government is clearly very concerned if bitcoin is received because it will have an impact on economic growth as well as the number of terrorism crimes and safeguarding the finances of a country as a legitimate payment of a country's money.

In my opinion, why is the government forbidding bitcoin?
1. It can not be managed, taxed, anonymous, unstable
2. Bitcoin breaks the rules of banks on issues such as fast money transfer. It is also possible for bad intentions