Why do some government ban bitcoin?

[newgal2017]

The possible reasons for a country to make a law in order to prohibit the use of Bitcoin and other cryptocurrency are:

First, Bitcoin has history being engage with illegal deeds and transactions.
Second, transactions made by the use of Bitcoin and other cryptocurrency can’t be traced by the government. Consequently this transactions can’t be taxed by the government, leaving a big impact unto the income of government.
Third, given the fact that Bitcoin and other cryptocurrency are independent from the government, offenders tend to use these to perform illegal actions.
Fourth, the government view Bitcoin and other cryptocurrency as threats to the their local currency. If the number of people who are using flat or physical money that are legalize by the government are being lessen then it wasn’t being use to it’s utmost purpose.
Lastly, Bitcoin and other cryptocurrency can be used in money laundering.

[milandres0207]

I think some people ban bitcoin because they don't even know what is the good effect on it to the society and to those people who are unemployed, or maybe because bitcoin has a bad effect on their economy.

[Lmaooo]

Some governments banned bitcoins because they clearly don't understand the concept of bitcoin and what is bitcoin for that matter. Some people only think of bitcoin as the currency used by the criminals for criminal, as media used to say it which is completely the opposite. Bitcoin is just like paper money e.g. USD, people can use it for good or bad, it is completely up to them.

[Henry27]

They see the bitcoin as a threat to their fiat money. Without the fiat money, the tax collection will be reduced since using bitcoin doesn't apply tax unless converted to fiat and buy something that only offers fiat as payment.

[CoPil]

I See topics about banning and I want to ask.

Is botcoin really that bad? To banned by other countries?
Do the other government in other countries see something bad?
Can bitcoin be used to locate us?and see what we are doing? In short a Spyware.  

I would say that probably they see Bitcoin as a threat. They see it as a threat to their monetary currency and they just hate the idea of welcoming a popular decentralized digital currency. With that, they don't want any transaction payments with bitcoin. Because they're not open about the idea and the whole thing about BTC, they banned it.

[kimochidesh]

Govt of some countries like Nepal, Morroco or Bangladesh banned BTC because they fear that it may create a parallel economy in their country. Politicians and govt. officials fear that if something like this happens, then politicians will lose their power.
Moreover, BTC features like anonymity and decentralized is also the main reason for its ban, as govt. fear that it may increase the illegal activity in their country so as a precautionary action they just BANNED it.

[triettman]

Some countries think of the government,Bitcoin takes the country's money to another country. Moreover, the government can not take any benefit from transaction of bitcoin.the government can not meet the financial system if the country.

[nightfury]

In my own opinion, that's maybe because they think that it can affect their economic growth because bitcoin is decentralized at can be a perfect tool for money laundering and any other illicit activities.

[poplolnman]

Govt of some countries like Nepal, Morroco or Bangladesh banned BTC because they fear that it may create a parallel economy in their country. Politicians and govt. officials fear that if something like this happens, then politicians will lose their power.
Moreover, BTC features like anonymity and decentralized is also the main reason for its ban, as govt. fear that it may increase the illegal activity in their country so as a precautionary action they just BANNED it.

Yeah some countries responded on bitcoin usage as a threat of criminal activity, they think people could use Bitcoin as terrorists funding way , drugs sale etc. and there's an urgency for them to regulate it soon due bitcoin popularity nowadays increased massively.

[bitfocus]

Any government fears anything that it can not control, also, no government is really democratic enough to give people the total control. In Bitcoin, the central bank is just a joke, so when any government sees that Bitcoin is kicking their central bank Dracula out of business, it fears Bitcoin.

[twicezeroiszero]

Govt of some countries like Nepal, Morroco or Bangladesh banned BTC because they fear that it may create a parallel economy in their country. Politicians and govt. officials fear that if something like this happens, then politicians will lose their power.
Moreover, BTC features like anonymity and decentralized is also the main reason for its ban, as govt. fear that it may increase the illegal activity in their country so as a precautionary action they just BANNED it.

Yeah some countries responded on bitcoin usage as a threat of criminal activity, they think people could use Bitcoin as terrorists funding way , drugs sale etc. and there's an urgency for them to regulate it soon due bitcoin popularity nowadays increased massively.

However, the government do not have any solution to solve the problem of cryptocurrency market.
Use KYC to verify account of user and this is requirement for any user, I think this is the best solution for currently.

[sheamus10]

I think the reason why there are countries that ban bitcoin because, the country wants to take advantage in bitcoin (tax)
but because bitcoin stands on its own, it does not depend on any bank so the government forbids it
but it will not inhibit bitcoin to continue growing later, and in the future

Precisely with the tax, this will greatly help our country. if a country already legalize bitcoin then the country can apply the system to use bitcoin.
Transaction, sale and purchase of assets that can be monitored thus reducing crime presentation.

[rinny]

I think some government ban bitcoin because some peoples make misuse of bitcoin like in China ban some exchanges which are not register legally and make illegal transactions.

[Arngrim]

Not all could be pleased by how bitcoin works specially a government with a communism type.
They take money from the people and a lot goes to them. Now, if that is the case then bitcoin is like an illegal currency since they cannot take anything from one person.
It is like money laundering already or keeping something from your own government and that is jail time.

[VayneAurelius]

Let's give an example. Vietnam's government banend Bitcoin just like what China did. Vietnam and China has their own reasons on why they are doing or implementing these kind of rules in their country. Actually not only the bitcoin was banned but also some of the other virtual currency. The reason why they banned it because people used bitcoin and other virtual currency for buying or selling or having a transaction and that is out of their law. So that, they prohibited the usage of these currencies in payment transactions. If we are going to talk about it generally, there are banks that was run by government and banks' function is to become the middle man of any transaction or trading. Since bitcoin and other decentralized cryptocurrency doesn't need that, they are scared that someday, banks will be gone.

[loof99]

I think the reason behind why do government banned bitcoin in their country is they not capable enough to adopt this king of opportunity.
The government always protect the both rights of the both parties and I think that is reason why they do it since most of the countries are not yet develop and civilized.

[Ronni]

I See topics about banning and I want to ask.

Is botcoin really that bad? To banned by other countries?
Do the other government in other countries see something bad?
Can bitcoin be used to locate us?and see what we are doing? In short a Spyware.  

First of all, nowadays, bitcoin has a really big amount and maybe thats one of the factor that government sees to ban bitcoin. Maybe it can lead to certain corruptions and also illegal transactions that the government may not know.
Certain countries ban bitcoins because they cant handle it maybe because of the state of their technology like internet speed and also the computers in their country. Also, not all countries are aware with bitcoins, some are still confused of what it can do and what its value is.

[Superzpay]

Bitcoin is not yet legal to all the country. Some government ban bitcoins.bitcoin is not bad at all.they think there are some instancs where bitcoin is being used for some illegal transactions. Bitcoin is that it's heavily used laundering and crimes this why they ban it.not really bitcoin being uncontrollable by banks and the government. They think it being used in illegal activities.

It is reality that some countries still not adopted Bitcoin. Even that some governments ban Bitcoin. I think they do this because of they are afraid of Bitcoin’s popularity. The peoples of their country will go crazy when they start buying Bitcoin. So is may be a threat for their own currency. Bitcoin is independent digital currency, so it not under the control of government that is not bearable by some government that’s why they ban it.

[aeternus]

Bitcoin is way of financial benefits not only for ordinary people but for states also. In some authoritarian countries like Iran, Russia or Venezuela cryptocurrencies were forced to get under government control for state interests.

In Venezuela cryptocurrencies are not under the control of the government that have banned them with the excuse they are destabilizing the government when it is the government itself the one that destabilizes everything and now they are trying to blame external actors for their misfortune but of course that is not going to be able to work for the long term since at some point that government is going to fail.

[haster100]

Some countries have banned bikoyun because it could affect their state income tax, and could also affect economic services.
They believe that banks no longer have the power, and this will be a change in bitcoins