Why do some government ban bitcoin?

[Rustandy]

Because it has no formal basis and regulatory authority, bitcoin is prone to be misused for illegal transactions, money laundering, and financing of terrorism. The circulation of bitcoin is also illegal because it is not reachable by the Central Bank. This has the potential to cause bubble. Therefore, the transaction of speculative virtual currency values. Not only harm the society later, such transactions can also disrupt the stability of the state financial system.

[Jamjamz30]

The case in china they just put a ban on things related to cryptocurrency to regulate it. The government cannot fully ban cryptocurrency and bitcoin because its something huge and cannot grasp whole. Bitcoin is a currency that pose a threat to governments that's why they try to control it, it also can be a way to conduct underground activities which the government cannot supervise. Bitcoin is gaining popularity and is a huge help for many and governments cannot seem to accept that, that's why they put regulations because they cannot ban it.  

[clonedone]

They do this because they can't control bitcoin, ICO and getting taxes from crypto. At the moment there is no necessary legislation to effectively regulate crypto and protect people from scam. I hope we will see a solution to this issue in the near future and China will be able to fully return to the market.

[kasemin]

Yes they can not really ban Bitcoin but they can do some things to prevent people from using it publicly for example, just because they do not benefit from it so they ask for an exchange to stop receiving merchants from the area and possibly prevent the local store from receiving Bitcoin. But Bitcoin can not be stopped by it. Users can only switch to a decentralized trading platform and avoid the ban. Bitcoin is decentralized and can not be easily stopped.

[welegendary]

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.

Government need to find methods to control bitcoin because government need this kind of technology. They don't have rights to ban Bitcoin easily because they do not know how it function and how Bitcoin is all about. Government should find first the effective way to get the advantages from Bitcoin

[welegendary]

They do this because they can't control bitcoin, ICO and getting taxes from crypto. At the moment there is no necessary legislation to effectively regulate crypto and protect people from scam. I hope we will see a solution to this issue in the near future and China will be able to fully return to the market.

We hope that China will be able to return the Bitcoin to the market because China is the world's populous country. Many chinese people will be able to use Bitcoin and that is the big advantage, we also need investors from big country and also a people who have a great intelligent about business world.

[tony kurniawan]

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

The reason why the government forbids bitcoin because the bitcoin system is decentralized, so the government can not control or impose a tax on ownership of bitcoin.

[Donotfoolme]

bitcoin claims that it 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 goverments are afraid of the crypto currency. to understand this fear, it is important to know a little bit about governments and conventional currencies.
 

 

[sanlakgun041988]

Because bitcoin is decentralized currency type and government cannot control the money flow within the country and between the countries. At the same time government doesn't have any income through bitcoins, since they cannot charge taxes from bitcoin and its transactions. Also bitcoin can be used for terrorist activities, since those moneys doesn't have any central authority 

[xdgefnej]

Some governments may worry that they will affect the economic order of the whole country. If we push forward encryption, many banks will disappear.

[tsinelas]

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

On my opinion, bitcoin was banned because the government can not benefit from it. They can not charge or put tax on it that is not good for the government.

[Donotfoolme]

becuase bitcoin is a none controled crypto currency . other country banned bitcoin bacause bitcoin are not controled of a goverment .

[buburjelly]

The plausible reason why the government forbids bitcoin is that the government does not want other currencies to use for its people other than their respective national currencies and they feel that bitcoin poses a threat to the economy of the country so they think bitcoin will create destruction for the national currency in the country. Such governmental thinking would be different if they tried to accept bitcoin as another currency option for their community use. With their prohibition asserting that the government does not accept the technology created as a solution to the problems of the existing economy.

[Boknoyz]

The government of some countries in the world banned Bitcoin. Because they can not control Bitcoin or can not. Again, the government of some countries consider Bitcoin trading illegal. For example, the government of China has not banned cryptocurrency, they have banned ICO exchange.

[pareshnakar]

Beacuse i am belong to india. Indian government minister said bitcoin is not ban but if you can buy its your resposibilities and your own risk. Some government ban beacuse bitcoin value very high and control in own curruncy.

[MS.LAWLIET]

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. 

Government bans bitcoin because it is decentralized, direct tax cannot be implied and also it gives privacy to the users which makes the transaction private which can be used in illegal things and to avoid that government bans bitcoin.

[Kittygalore]

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

Although bitcoin has a good rate it is risky and dangerous to invest and to be involved into it because if you have bitcoin you might lose at any time. Also bitcoin might remove some government jobs because it has a big potential of being the future currency and might as well take over the currency that countries give. Despite the fact that it is banned to other countries desperate investors still invest because of the high rate because they know how to control bitcoin.

[rhenz01]

Beacuse i am belong to india. Indian government minister said bitcoin is not ban but if you can buy its your resposibilities and your own risk. Some government ban beacuse bitcoin value very high and control in own curruncy.

I like what India did to their people and by not totally banning bitcoin and i hope that the government from other countries should also give the responsibility to their people to choose if they get involved in crypto business.

[Jose21]

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.

I think the reason why the Government is against bitcoin is about "TAX/TAXES". Why? Because, bitcoin has no tax. So, the government is against about it because they can't get money (Tax) form bitcoin. Also, government

About China,  I think your right. They can't just banned bitcoin because it work in internet. As long as there are internet connection, bitcoin can't be banned. I think he government will find more ways to get bitcoin to control it also, because government controls every transactions that involves money.

[Xester]

Because it has no formal basis and regulatory authority, bitcoin is prone to be misused for illegal transactions, money laundering, and financing of terrorism. The circulation of bitcoin is also illegal because it is not reachable by the Central Bank. This has the potential to cause bubble. Therefore, the transaction of speculative virtual currency values. Not only harm the society later, such transactions can also disrupt the stability of the state financial system.

It is true that bitcoin is being used by drug traffickers, money launderers and other illicit activities and it is one reason why countries banned bitcoin. Other banned bitcoin because the government has no control over bitcoin and they are afraid of what negative effects it may bring to their economy. While other countries banned bitcoin is because they are still studying how to adopt bitcoin and what regulations are they going to place so that it will help and protect the people while developing the economy.