Why haven't governments illegalized bitcoin transactions?

[teosanru]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?
Many governments are trying to regulate bitcoin, control exchanges and force people to be authorized. But I am sure government wish bitcoin was not created and there was no trouble of regulating bitcoin. They  prefer their fiat to any other currency.
Why no government have made bitcoin transactions illegal?
I think they want to avoid creating an underground market.They don't want bitcoin to be traded like Alcohol and drugs. They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it. Do you agree with me? Is there any other things have caused governments to not make bitcoin illegal?

There are two reasons behind why governments have not made Bitcoin transactions illegal until yet:

1. It isn't that easy to Completely stop transactions:We all know weed is illegal but how far has government been able to stop it's circulation in even the top tier cities of States. Bitcoin is pretty similar too. Declaring bitcoin transaction illegal would actually have no impact because it is already impossible to trace them as of now. Recently there might have been a bit uprise in such tracing due to KYC of exchanges but still core transactions of btc over a private key wallet are absolutely untraceable.

2. Political Reasons: Let's face it biggest money launders in our world are the political leaders and political parties who regularly receive millions in form of undisclosed donation and bribery. This money is definitely fed into the crypto system and comes out clean after the process. This is another reason why government is a bit lethargic at banning crypto as their own business could stop.

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[Oilacris]

I don't see any reason for governments to illegalize Bitcoin.
It doesn't break any laws.
"Bitcoin is just an alternative economy and ideally people should be able to exchange goods in alternative economy if they so choose."
 So governments should leave Bitcoin alone.

You didn’t find out what is the main reason in behind the scene for illegalize Bitcoin by government. First of all Bitcoin is a virtual currency and it’s a decentralized ecosystem. That's is big factor for majority of the governments. Because your every transactions are created anonymously how government will be track? Even Bitcoin isn’t controlled by any recognised bank or institutions.              

Due to anonymity and decentralized aspect which is the main reason why most government do really hate up or oppose bitcoins existence.
Anonymity is one of the primary reason where these feature can be used up by people neither on good or bad ways without being detected.

We have seen countries already banned up Bitcoin/Crypto due to these reasons but somehow there are other countries do the opposite side.

[doomistake]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?
Many governments are trying to regulate bitcoin, control exchanges and force people to be authorized. But I am sure government wish bitcoin was not created and there was no trouble of regulating bitcoin. They  prefer their fiat to any other currency.
Why no government have made bitcoin transactions illegal?
I think they want to avoid creating an underground market.They don't want bitcoin to be traded like Alcohol and drugs. They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it. Do you agree with me? Is there any other things have caused governments to not make bitcoin illegal?

The reason why haven't governments legalized bitcoin transactions because of illegal activities that are happening such as scams and frauds, that is why there are a lot countries who banned bitcoin like china and etc to avoid this kind of illegal acts. I think it will be better if we can remove every illegal activities in crypto, so that the governments in every country will start to legalized every bitcoin transactions.

It is not completely illegal, they can't completely shut down bitcoin because it is decentralized, what's happening here is they are banning all of the access you could have to earn bitcoin, like mining, trading, just like what happened in China, in other words the stars are always up there but you can't see it because of clouds, I hope you are getting my point of view.

The Government are just spreading nonsessencial informations that are most misleading to discourage the public to adapt cryptocurrency, because in some countries, bitcoin is a threat. There is a rainbow always after the rain, because the countries where bitcoin is legal is more than the countries who hates it.

[Zeke_23]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?

Well I know a few countries banned the usage of bitcoins entirely. Not even on people in the country is eligible to make use of bitcoin and even buying it is illegal. There are few countries where bitcoin is banned and not available to the public like Saudi Arabia and a few more countries. Then the rest of the countries in the world are free and legal to use bitcoin in any way they want too.

They can use bitcoin on the internet and bypass the law that they had. Using a VPN to change IP addresses is a very easy thing to do.
But here is the fact why most governments banning cryptocurrency and once you abide, you were put in jail. Well, most of the reason why governments illegalized bitcoin transactions because of the drug lords, criminals and terrorist that are transacting through bitcoin and the government has no access on it the reason why they don't get caught.

Its so easy to change IP address using VPN, but even if they change their IP if they get bitcoin how are they suppose to withdraw it, its illegal, no one will try to have a private company or any financial services to provide the exchange of bitcoin to their own fiat.

[dr_chen]

Blockchain is an uninterruptible system. Even God cannot intervene in the blockchain. It will continue until there is only one video card running for mining in the world. Governments do not have the luxury of judging it legally or illegally. It can only control cashouts. Shitty FOMO

[Reatim]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?
Many governments are trying to regulate bitcoin, control exchanges and force people to be authorized. But I am sure government wish bitcoin was not created and there was no trouble of regulating bitcoin. They  prefer their fiat to any other currency.
Why no government have made bitcoin transactions illegal?
I think they want to avoid creating an underground market.They don't want bitcoin to be traded like Alcohol and drugs. They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it. Do you agree with me? Is there any other things have caused governments to not make bitcoin illegal?

Well I think the right question is “Why Would the Government Made illegality about Bitcoin”? Yeah they are turning to banned in time and some governments treat as how bad crypto can bring but they are all wrong because as we can all see ,Bitcoin is helping the world to make it easier and accessible to the people there’s nothing in this world that ever created such like this and in future this will be proven,

Blockchain is an uninterruptible system. Even God cannot intervene in the blockchain. It will continue until there is only one video card running for mining in the world. Governments do not have the luxury of judging it legally or illegally. It can only control cashouts. Shitty FOMO

Well you’re perfectly correct and blockchain will be with us forever no matter what they do,no matter what they care.

[blckhawk]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?
Many governments are trying to regulate bitcoin, control exchanges and force people to be authorized. But I am sure government wish bitcoin was not created and there was no trouble of regulating bitcoin. They  prefer their fiat to any other currency.
Why no government have made bitcoin transactions illegal?
I think they want to avoid creating an underground market.They don't want bitcoin to be traded like Alcohol and drugs. They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it. Do you agree with me? Is there any other things have caused governments to not make bitcoin illegal?

Actually, some countries do prohibit using these cryptocurrencies. The problem lies on how the government will restrict its usage on a large scale. Users can use Virtual Private Networks, on top of untraceability of Bitcoin transactions, making it difficult for governments to restrict it.

The benefits of restriction is somehow good, anonimity is sacrificed for further insurance for thefts and crimes. But the whole network cannot be really stopped as of now. In order to stop it, every single node must be completely shut down, since its decentralized and each one has a copy of the ledger. It's like a mesh that even if stopped at a region, it'll find its way using different route to make transactions possible and therefore, uncontrollable by centralized institutions.

[Xxmodded]

Many people use bitcoin name to make some scam investment project, we found many investment scam project using bitcoin as their name to get many investor and government want to keep the people lost money in scam project using bitcoin as their their project name, I got many scam cases using bitcoin as investment name.

[Murat]

So far I know about this issue is that some of the countries government is trying to recognize and regulate Bitcoin in recent time but it's not possible at all, I think Government can only declare it as a legal or illegal process but can't it stop because it's based on the decentralized system. so this issue is not in hand of any government. but this scenario has been changed in recent time, many countries are putting their head in this blockchain system and they are taking it a very close observation. Some countries also think about Blockchain's future and closely stay in touch with Bitcoin. but I can't understand why the government is not trying to make understand that Bitcoin and cryptocurrency are making the process of payment easier and secured. Who knows when they will realize...?

[Moiyah]

Why no government have made bitcoin transactions illegal?

The lack of control in circulating the digital currency is one of the reasons why other government is not in favor of cryptocurrency. And yet they also know the advantages of crypto that’s why it is hard for them to illegalize it.

They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it.

In some countries like China and Russia they banned bitcoins and altcoins, however they are planning to have their own crypto which benefits their own state and yet be control, they are trying to innovate a centralized cryptocurrency. It’s like hitting two birds in one stone, they create a well-timed modern digital currency which they can flow into and manage, at the same time it has a huge advantage in their fiat currency and economic progression.

[pecson134]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?

Well I know a few countries banned the usage of bitcoins entirely. Not even on people in the country is eligible to make use of bitcoin and even buying it is illegal. There are few countries where bitcoin is banned and not available to the public like Saudi Arabia and a few more countries. Then the rest of the countries in the world are free and legal to use bitcoin in any way they want too.

The banning of certain is understandable because it may have some conflicts on their values and tradition, but for pushing to illegalized the bitcoin and other cryptocurrencies by government? Maybe possible but as far I had observed just like in my country the government is willing to enter the crypto world and provide ways for those to be use in transaction that was done in the country.

[terrorJR]

I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?

Well I know a few countries banned the usage of bitcoins entirely. Not even on people in the country is eligible to make use of bitcoin and even buying it is illegal. There are few countries where bitcoin is banned and not available to the public like Saudi Arabia and a few more countries. Then the rest of the countries in the world are free and legal to use bitcoin in any way they want too.

The banning of certain is understandable because it may have some conflicts on their values and tradition, but for pushing to illegalized the bitcoin and other cryptocurrencies by government? Maybe possible but as far I had observed just like in my country the government is willing to enter the crypto world and provide ways for those to be use in transaction that was done in the country.

In my country there is no prohibition on transacting cryptocurrency or Bitcoin because the government will include blockchain technology in the government so there is good for me too, but who knows when it's officially in detail.

[gunhell16]

That’s to create FUD in the market and if you heard many news about banning bitcoin, I am sure that the government has no final decision about that thing. They know the pros and cons of bitcoin, and the advantages are working well that’s why they can’t fully banned bitcoin, this is what I see regarding the situation.

How can they ban the bitcoin and its transaction if there is no identity behind it?
Who are they will be cathing? that is why they hate to have this in their country. they can't monitor the money of their citizens.
Banning Bitcoin is like putting wall to sea, whatever you do the water will come.

[skarais]

During this time what happened in my country is the government does not allow bitcoin to be used as a means of payment, but they legalize bitcoin as an investment instrument included in the commodity market.
The government regulates and they continue to prevent it from being used as an instrument of crime.

[Arsenyo]

Because banning cryptocurrency would hurt a country more than it would actually help. In order to ban cryptocurrencies, you would need to heavily restrict the internet. I think there isn’t much governments can do to stop Bitcoin, we’re already past the point of no return.

[ardentvolcanoes]

That’s to create FUD in the market and if you heard many news about banning bitcoin, I am sure that the government has no final decision about that thing. They know the pros and cons of bitcoin, and the advantages are working well that’s why they can’t fully banned bitcoin, this is what I see regarding the situation.

How can they ban the bitcoin and its transaction if there is no identity behind it?
Who are they will be cathing? that is why they hate to have this in their country. they can't monitor the money of their citizens.
Banning Bitcoin is like putting wall to sea, whatever you do the water will come.

Without any control government will not legalize or will do their best to have restrictions, your arguments regarding to why government hated this system is considerable, they need to look for alternatives to still have the full control of their economy with this additional system where citizens of any countries have freedom to do transactions without a trace would be a very tough job from the government.
Additional problem is there's no way to ban this chain entirely, probations might be applied but banning  completely  will be hard to implement.

[asus09]

Government haven't illegal bitcoin transaction because could have move all of money transaction become bitcoin transaction, many people will use bitcoin than money because always can increase profit with higher price of bitcoin, many country have stop and make war with bitcoin to illegal of bitcoin as transaction.