Why do some government ban bitcoin?

[abd000]

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China, which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease yuan-denominated trading by September 15. Huobi and OKCoin — two other exchanges based in China — have announced similar plans to stop trading. To be clear: China has not banned the use of cryptocurrencies. It has banned cryptocurrency exchanges and initial coin offerings (ICOs). Even still, it has prompted some to consider whether a government might ban cryptocurrencies like bitcoin — and, perhaps more importantly, whether such a ban would be effective

[johnatunum]

They ban it because they can't control it. Governments are in the Control business.

[rainbow169]

China has not banned cryptocurrency. They just banned ICO and exchanges. Peer to Peer trading is still available and actually quite popular in China. I don't think there is an effective way for government to ban bitcoin anyway.

[crzy]

China has not banned cryptocurrency. They just banned ICO and exchanges. Peer to Peer trading is still available and actually quite popular in China. I don't think there is an effective way for government to ban bitcoin anyway.

Right, government can’t ban bitcoin easily because they need this technology. Government may regulate bitcoin but for them get some taxes, government will find ways just to control bitcoin that can never happen.

[player514]

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China, which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease yuan-denominated trading by September 15. Huobi and OKCoin — two other exchanges based in China — have announced similar plans to stop trading. To be clear: China has not banned the use of cryptocurrencies. It has banned cryptocurrency exchanges and initial coin offerings (ICOs). Even still, it has prompted some to consider whether a government might ban cryptocurrencies like bitcoin — and, perhaps more importantly, whether such a ban would be effective

I mean, Governments may be interested in crypto and bitcoin, but a major issue comes with how it's being used. For all they know, it can be used for illegal purposes and that may scare the governments because it leads to a dangerous country. However, another reason that bitcoin makes governments nervous is that it can be used to dodge fees and taxes that go straight to them to fund their own projects and whatnot. It makes sense that they're nervous about it, but I believe that there are better solutions that they can come up with.

[Godsrevenge]

I personally do expect some upcoming discussion in Europe soon because of the energy consumption due to mining. Specially from the axis Germany - France we could get some resistance / pressure. And honestly, although I‘m a cc fan, I can understand the discussion. But I hope it will end in the promotion of energy saving mining approachs (for example via sun energy) instead of any general ban / restrictions.

[Coin-Keeper]

I am uncertain where all this will go.  In a very general sense BTC could approach becoming a global currency.  Not absolute for now, but when general acceptance spreads more it will have the effect of appearing worldwide in dominance.  Clearly, countries with crumbling fiat are seeing that BTC is propping up investors in huge numbers.  There are countries where the fiat you hold is becoming mostly worthless as the days go by.  The countries controlling those terrible fiat bills absolutely don't want to see BTC take over in their countries.  And yet, if I had access I bet the Gov officials from those very places are buying BTC to cover their A**.

[bamboylee]

First, any link in this news so we can validate?

On topic, it is just natural for a government to ban or at least limit cryptocurrency in their country. Governments are all control and protecting their interest. If cryptocurrency, particularly bitcoin, is weakening yuan in china, their government is just acting on it that is why they want to close exchanges.

But bitcoin cannot be stopped by that. Users can just swich to decentralized trading platforms and evade those bans. Bitcoin is decentralized and cannot be easily stopped.

[SyGambler]

they can't totally ban bitcoin but they can do some things to prevent people from using it publicly for example , simply because they aren't profiting from it
so they ask exchanges to stop accepting traders from that area and maybe prevent local stores from accepting bitcoin , but in general no government can totally ban crypto

it's just like gambling where you can find some countries are totally ok with gambling while others are totally strict

[angelolazaro]

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China, which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease yuan-denominated trading by September 15. Huobi and OKCoin — two other exchanges based in China — have announced similar plans to stop trading. To be clear: China has not banned the use of cryptocurrencies. It has banned cryptocurrency exchanges and initial coin offerings (ICOs). Even still, it has prompted some to consider whether a government might ban cryptocurrencies like bitcoin — and, perhaps more importantly, whether such a ban would be effective

I think one reason why bitcoin is being ban by some government in some countries is because, it can be used in some illegal activities like buying illegal guns, drugs, hiring a hitman and many more. Because of that capability of bitcoin, the crime rate of a certain country may increase thats why some government are against it.

[timikulit]

Government bans bitcoin because it is a big threat for their financial security. government controls the money flow in their country (interest rate etc..). bitcoin is different, no one controls bitcoin no government or group of people. it is purely decentralized. 

[Triple]

Like most other people have said in this thread, I think they ban it because they're afraid of it. They're afraid of this technology overtaking their own national currency. And what do you do when the government itself runs out of money? It's scary to think about. They wouldn't have control over anything much less anyone. You'll see soon governments try to regulate these crypto coins and we'll see how far they can get with that.

[SUDARMONO]

I think to ban the bitcoin trade it is necessary to think very hard decisions, bitcoin currency is not controlled by the rules of a country, and bitcoin is very useful for the crowd, should not bitcoin forbidden, but to be developed with the advancement of advanced technology to simplify public welfare.

[dillpicklechips]

No. If they really then they should have banned it along with banning crypto-exchange and ICOs. What does this imply? It simply means that they recognize the opportunities that the crypto industry is giving. If they ban it, automatically the mining farms there would shut down hence the money pouring in to their country would reduce and it would be a waste. Stict KYC is the key.

[TipMePlz]

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China, which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease yuan-denominated trading by September 15. Huobi and OKCoin — two other exchanges based in China — have announced similar plans to stop trading. To be clear: China has not banned the use of cryptocurrencies. It has banned cryptocurrency exchanges and initial coin offerings (ICOs). Even still, it has prompted some to consider whether a government might ban cryptocurrencies like bitcoin — and, perhaps more importantly, whether such a ban would be effective

Because goverment felt like if bitcoin keep arising they it may attack their integrity.

[Nawaytes]

No, China has not banned Bitcoin, they just ban the ICO. They make a decision to ban ICO because so many ICO became a scam and steal money from the investors. I think it's a good policy for their country and i agree with China government, they must save the people before something bad happened to those people.

[Images21]

China-based cryptocurrency exchange BTCC suspended all domestic trading in yuan last weekend. The decision came on the heels of a September 5 statement from regulatory authorities in China, which required all domestic cryptocurrency exchanges publish closing announcements, stop registering new users, and establish a schedule to cease yuan-denominated trading by September 15. Huobi and OKCoin — two other exchanges based in China — have announced similar plans to stop trading. To be clear: China has not banned the use of cryptocurrencies. It has banned cryptocurrency exchanges and initial coin offerings (ICOs). Even still, it has prompted some to consider whether a government might ban cryptocurrencies like bitcoin — and, perhaps more importantly, whether such a ban would be effective

I mean, Governments may be interested in crypto and bitcoin, but a major issue comes with how it's being used. For all they know, it can be used for illegal purposes and that may scare the governments because it leads to a dangerous country. However, another reason that bitcoin makes governments nervous is that it can be used to dodge fees and taxes that go straight to them to fund their own projects and whatnot. It makes sense that they're nervous about it, but I believe that there are better solutions that they can come up with.

Everything is having an issue as to how they are used. It is not just Bitcoin or any other cryptocurrency for that matter. As we look at the current situation, fiat money is widely used for so many illegal activities. Fiat is the one fueling drugs, terrorism, guns, alcohol, and so on and so forth. All these happened even before Bitcoin was invented. And even before fiat was invented, silver and gold were also used to support illegal activities. It is not on what really. Everything is on how.

[dimastegar]

A Bitcoin banned state must be for a good cause. For example, a country forbids Bitcoin one of them to avoid the many free investments in the high-risk Crypto world. And again the government is also not responsible for the loss of crypto currency assets.

[Reid]

They have a different kind of how the government works and it seems like they didnt like people having free will to control their money or have privacy. Transparency is what they want so that they can tax everything you own or have a share of it.
That could be one of the main reason.

[pranaja]

China wants to make its own virtual money
It is not impossible that China wants to create its own cryptocurrency that can be government legality. During this time many things are banned in China, in the end they make their own.