Countries where Bitcoin is “banned”

[joker_josue]

We know that it is not possible to ban bitcoin directly, but to create mechanisms that make its use or acquisition difficult, running the risk of being arrested, fined or other problems with the government. And there are several countries where they create these impositions on Bitcoin.

With that in mind, I decided to do some research on the subject and found an interesting article from EuroNews - Bitcoin ban: These are the countries where crypto is restricted or illegal. The information contained in the article is already a year old, but it allows you to have an overview.

The article presents 18 countries that have created restrictions on Bitcoin. Here is a small compilation of what is involved in these restrictions in these countries.

#Algeria - Since 2018 it has been illegal to buy, sell, use or hold virtual currencies.
#Bangladesh - Officially there are bans on the use of cryptocurrencies, with penalties of up to 12 years. However, they have had a soft strategy on the subject, with no record of convictions.
#Bolivia - The use of Bitcoin has been prohibited since 2014 (this ban was very early).
#China - We are well aware of China's history with respect to cryptocurrencies, which have intensified their ban after the Terra Luna incident.
#Colombia - Also since 2014, financial institutions cannot have any activity related to Bitcoin: “protect, invest, intermediate or administer virtual money operations”.
#Egypt - By religious decree, since 2018, bitcoin transactions have been prohibited by Islamic law. And since 2020, any trading or promotion of cryptocurrencies must have a license from the Central Bank.
#Indonesia - The use of cryptocurrencies as a form of payment has been banned since 2018.
#Ghana - Despite cryptocurrencies being illegal, there appears to be interest from the central bank in blockchain technology.
#Iran - Cryptocurrencies mined outside the country cannot be traded, but Bitcoin mining is encouraged.
#India - It is one of the worst countries, because since 2021, it is a crime to own, issue, mine, trade and transfer cryptocurrencies.
#Iraq - Efforts have been made to block and hinder the use of cryptocurrencies, despite the fact that they are becoming increasingly popular in the country.
#Kosovo - Due to the energy crisis in the country, any mining activity is prohibited.
#Mexico - Even though cryptocurrencies are banned, the largest cryptocurrency exchange in the country - Bitsos, has more than 1 million users.
#Nepal - The central bank has declared Bitcoin illegal since 2017.
#North Macedonia - It is the only European country that officially bans cryptocurrencies.
#Russia - Where some of the largest mining centers in the world are located, despite the fact that it is prohibited and cryptocurrencies can be confiscated.
#Turkey - The direct or indirect use of bitcoin to pay for goods and services is prohibited. And trading on exchanges is limited to a group of companies chosen by the government, under various rules.
#Vietnam - Payments using cryptocurrencies are prohibited, but they can be used as assets.

How do you think bitcoin users deal with these situations?
How do they manage to get around these restrictions without getting caught?
Do you think, what more countries can join this list?

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[Jawhead999]

IMO the restriction of Bitcoin as a currency isn't a big deal because most people are using Bitcoin as a commodity, just convert it to fiat and there's no problem.

But the restriction of must having license or anything that verified by central entity is definitely not good, this will ruin someone else privacy.

The interesting fact is what about Bitso? it's ironic if the Mexico's government don't want their citizen to use Bitcoin and they only serve for foreigners.

[Nrcewker]

The countries you have mentioned haven’t completely banned the coins. They have just restricted it’s uses, that’s all. These countries don’t like it’s users to use the coins. As they cannot control the coins, hence they just put restrictions on it completely. People still use Bitcoins on these countries, but none of the exchanges provide complete support to cash out the Bitcoins in their nation’s local currency.

[Bureau]

joker_josue I can assure you that Bitcoin or any other crypto is not banned in India. There was a blanket ban earlier in 2018 by the Reserve Bank of India, it got removed in 2020. A new tax policy was introduced by the government of India in 2022 and recently a lot of my fellow Indian community members have paid crypto tax on their capital gain.

In India there are several local cryptocurrency exchanges that are operating with ease. The trading  volume has depeleted due to the new tax law otherwise everything else is business  as usual in India for Bitcoin. We are expecting a regulatory framework around Bitcoin and other cryptocurrency most probably by the end of this year or by end of next year.

BTW, you should add North Macedonia to that list as it is the only European country that has banned Bitcoin and other cryptocurrency.

[dothebeats]

First of all, thank you for the hard work I'm sure it took some of your time and definite effort to post this. Second, that is surely a lot of countries, I didn't expect them to be 18 countries in total seeing as how popular Bitcoin is getting. However, this post only shows just how difficult it will get for Bitcoin to have the international recognition and acceptance we all hope it gets. There will be a lot of countries that will go against this notion and it will certainly cause debates and heated discussions. The most prominent reason why a lot of countries will surely be added to this list is the Central Bank. I'm sure most of us are already familiar with this point with Bitcoin and Central Bank, and how most (if not all) countries will surely side with the latter one. Additionally, legalizing something, especially one that is connected to money and the economy will take a lot of time and process.

However, there are those bitcoin users who know just how to go around those restrictions, cause I sure know some people who live in that listed country who are able to transact and use bitcoin just fine. I'm sure they are able to find a loophole or a system that is out of the government's sight to do their transactions, and as bad as it sounds kudos to them for having the balls to do so. I mean, anything to make you money, right? It's not like they are hurting someone if they just bend the rules just a little bit, it is even pretty clever of them to find ways to go around the system undetected.

[Husires]

#Bangladesh - Officially there are bans on the use of cryptocurrencies, with penalties of up to 12 years. However, they have had a soft strategy on the subject, with no record of convictions.

Their local board is active that I would have thought that trading and everything is so easy in Bangladesh.

How do you think bitcoin users deal with these situations?
How do they manage to get around these restrictions without getting caught?
Do you think, what more countries can join this list?

All the countries you mentioned do not have a clear ban but rather restrictions on trading, buying and selling Bitcoin, but the number of countries that have legislation and penalties in which individuals have been imprisoned because they are trading Bitcoin and not for any other reason such as money laundering is rare or limited.

If I was in a country that imposes restrictions on Bitcoin will adhere to the ban  but I will travel abroad, buy Bitcoin and keep it until the legal cover is available.

[kryptqnick]

The list of countries isn't that big, but the population of some of them is huge, and that's a big deal. With China's and India's 1.4 billion people in each of them, it's safe to say that well above 3 billion people (perhaps around 3.5 billion) are living under official crypto restrictions. It doesn't mean they all can't use cryptos at all, but it means they are significantly limited and facing some risks for doing it. That's, like, 40% of the world's population we're talking about, so it's huge. Some countries might join these, but I don't think that'll change much, and it's important to realize that the amount of people already affected is incredibly significant.
But it's also important to know how often the laws are enforced there, and what kind of punishment people face. Because in some countries, some bans can mean literally nothing and not affect people's lives. For example, piracy of movies and TV shows is technically illegal in my country, but using torrents is incredibly popular, without anyone ever worrying about any consequences because there won't even be any consequences. So if in some of these countries, crypto restrictions are like that, it should be accounted for.

[joniboini]

#Indonesia - The use of cryptocurrencies as a form of payment has been banned since 2018.
How do you think bitcoin users deal with these situations?
How do they manage to get around these restrictions without getting caught?

Most Indonesians don't use Bitcoin for payment, at least for local or national transactions. I believe nothing really changed from then, and there's nothing urgent that makes them try to push the narrative that they should be able to pay with Bitcoin. That being said, I do know some people still use Bitcoin to pay internationally or use services like SIM top-ups or game currency payments. So far no one is really getting arrested for that, I doubt the government is going out of its way to stop people making $10 transactions per month with BTC either.

[Sim_card]

We still have people in these countries that you mentioned OP, that are into cryptocurrency (bitcoin) because nobody can deprive anyone from using bitcoin,since it is kept in a noncustodial wallet, which nobody can have access to apart from you. Bitcoin isn't totally banned but it is restricted by the government in these countries because they don't have the control power over it. The only challenge that I think that people that bitcoin is banned in their countries is converting bitcoin to their local currency and vice versa. In my country bitcoin was restricted to banks but not to individuals and the rate of adoption is still increasing. No matter any extent that the government goes to ban bitcoin in it's country, there will still be bitcoiners but the adopting will increase slowly.

[ImThour]

This post is a joke, as some of the countries has added limitations and not a complete Ban. OP doesn't know the difference between Ban and Limitation. If you google India Crypto Regulations, you just have to pay a tax fee and you can use Cryptocurrency and even hold and create accounts. If it was ban, why would any exchange allow Indian users to create accounts? Complete nonsense to be honest. For Bangladesh, that's true though.

[m2017]

It would be great to complete the list of countries in which bitcoin is banned with information about the punishment (not every country has fines or other penalties) for buying / selling, owning, or even just because someone looked in the direction of btc. The last point is a joke .

The first thing that catches eye in this list is that there is not a single developed European country there, and this forces us to draw certain conclusions. It turns out that bitcoin is banned for the most part in third world countries, with a weak economy, weak technologically, or where there are totalitarian tendencies that try to control citizens as much as possible. These countries are already lagging behind on the world stage and ban bitcoin will further tear them away from the leading countries. Those countries that allow technology to develop, those are progressing, and those countries that are on the list are likely to pause progress.

I'm sure this list will change. That is, new countries will be added and maybe some of the list will become more loyal to bitcoin after a while.

[Dimitri94]

How do you think bitcoin users deal with these situations?
How do they manage to get around these restrictions without getting caught?
Do you think, what more countries can join this list?

Even with the above-mentioned restrictions in place, the demand for Bitcoin is not slowing down. Bitcoin is being used by almost every country in the world. I think crypto cannot be regulated with such a ban. If it could be done then many would have been influenced earlier. Crypto is being used in all the countries mentioned but there are legal restrictions. Since it is not possible to stop Bitcoin by the government of any country. So many feel that governments are doing their duty just by banning. What I personally emphasize about poison is that since the government cannot control it, even if it affects the world market temporarily, it will not have any negative effects in the long term.

[KiaKia]

Remove India please, The ban on crypto is now old school, many people in India are saying there is no more ban on crypto, as for China it's all a game, they are in between banning and unbanning crypto in the country, they will soon lift it I am sure of it.

In these crypto ban countries many people are slowly accumulating crypto and nobody knows about it, The truth is you can be in any county and still have crypto without anyone knowing, if you can take decentralization very seriously no one will know, not even your government.

I remember when the ban on crypto in my country was serious I still kept buying and selling crypto, I just used p2p services to exchange my fiat into crypto, right under the nose of the banks, you will understand what I mean if you know how p2p works.

[yazher]

The countries you have mentioned haven’t completely banned the coins. They have just restricted it’s uses, that’s all. These countries don’t like it’s users to use the coins. As they cannot control the coins, hence they just put restrictions on it completely. People still use Bitcoins on these countries, but none of the exchanges provide complete support to cash out the Bitcoins in their nation’s local currency.

That's what I think too because other countries on the list are neutrals when it comes to owning bitcoins and accepting them as a means of payment for their services or products. I think this is not permanent because those countries are just temporarily like that and once they see the successful stories from some countries that have done the opposite, they will lift this so-called ban and join the financial revolution if they don't want to be left behind. One of the reasons why are they doing this is to provide financial security for their people because we know that scammers will take advantage of some communities that lack knowledge about cryptocurrencies.

[Husires]

Remove India please, The ban on crypto is now old school, many people in India are saying there is no more ban on crypto, as for China it's all a game, they are in between banning and unbanning crypto in the country, they will soon lift it I am sure of it.

OP doesn't know the difference between Ban and Limitation. If you google India Crypto Regulations, you just have to pay a tax fee and you can use Cryptocurrency and even hold and create accounts. If it was ban, why would any exchange allow Indian users to create accounts? Complete nonsense to be honest. For Bangladesh, that's true though.

Most Indonesians don't use Bitcoin for payment, at least for local or national transactions. I believe nothing really changed from then, and there's nothing urgent that makes them try to push the narrative that they should be able to pay with Bitcoin. That being said, I do know some people still use Bitcoin to pay internationally or use services like SIM top-ups or game currency payments.

The article is dated 08/25/2022, that is, specifically a year ago, and the regulatory regulations may have differed completely since that date. Also, these laws are based on official reports, which are sometimes different from what happens in reality, or sometimes there is a ban on Bitcoin, but Bitcoin is not defined. Or penalties or establishing a legal regulation that makes all of this possible.

A list of legal restrictions can only be created by specialized individuals who have a presence in all countries on the list.

[Flexystar]

The information is so misleading in many ways. Most of these countries still have active users and as stated by few users the countries that you have mentioned like Egypt, India, Russia, Kosovo and turkey are highly active in the crypto currency trading. You really need to verify the source and also verify information from at least different sources or local sources of those countries. The best way to do this is ask the local boards to participate in this voting and ask the actual situation about bitcoin in their countries.

[BlackHatCoiner]

How do you think bitcoin users deal with these situations?

They don't, I presume. If you know it's illegal to use bitcoin, and that there exists mass surveillance to prevent anyone from disobeying, then 99% of the people will not take the risk. Dependently on the fine, of course.

How do they manage to get around these restrictions without getting caught?

Tor, and they don't sell for fiat. They just use it as currency.

Do you think, what more countries can join this list?

I quickly looked for North Korea, and it's missing. I'm pretty confident it isn't allowed there either.  

IMO the restriction of Bitcoin as a currency isn't a big deal because most people are using Bitcoin as a commodity, just convert it to fiat and there's no problem.

Lol. And when you'll be prompted to justify that income... Good luck.

[stompix]

The information is so misleading in many ways. Most of these countries still have active users and as stated by few users the countries that you have mentioned like Egypt, India, Russia, Kosovo and turkey are highly active in the crypto currency trading. You really need to verify the source and also verify information from at least different sources or local sources of those countries. The best way to do this is ask the local boards to participate in this voting and ask the actual situation about bitcoin in their countries.

So we should trust people on a forum rather than an official decision?

I don't understand why everyone is angry at OP, it is what it is!
Just because you and one hundred other people drive in a city at 70kmh and nobody gets a fine it doesn't mean that that limit is not 50kmph!
Porn is banned in some, alcohol is banned in some, and some countries have banned books and movies, just because people can get their land on it it doesn't mean there is no ban!

The first thing that catches eye in this list is that there is not a single developed European country there, and this forces us to draw certain conclusions. It turns out that bitcoin is banned for the most part in third world countries, with a weak economy, weak technologically, or where there are totalitarian tendencies that try to control citizens as much as possible. T

Isn't it ironic?
People cheer for BRICS and de-dollarization and there you have the list, no G7 or EU country while you have 3 out of 5 members from Brics there and the leading one has banned everything over and over. It would be interesting to see their ranking when it comes to freedom and press, seeing Russia and Iran in that list probably the bottom 20 in the world.

[pooya87]

#Iran - Cryptocurrencies mined outside the country cannot be traded

That makes no sense
Whoever came up with this joke had no idea how cryptocurrencies work. There is no such law in Iran and it wouldn't even be possible to enforce it since that would require ridiculously centralized exchanges that store a massive database with a complex blockchain analysis algorithm that can follow the coins that were mined domestically to prevent anything else from being traded LOL

Mining cryptocurrencies in Iran is legal and regulated, you'd need a cheap and easy to get license for mining farms. Trading cryptocurrencies is not really regulated but it is not banned either; there are multiple Iranian exchanges that have been working fine with banks to accept deposit/withdrawals.

[internetional]

#Russia - Where some of the largest mining centers in the world are located, despite the fact that it is prohibited and cryptocurrencies can be confiscated.

There are only two things that are forbidden in Russia:
1. to receive payments in BTC if you are a Russian legal entity or tax resident;
2. to disseminate information about goods and services which may be bought for BTC.
Both restrictions are stated by this law: https://www.consultant.ru/document/cons_doc_LAW_358753/176562423610280f8b2578ab3480887bf7707562/ (paragraphs 5 & 7 accordingly).

Everything else is legal. E.g. people may make payments in bitcoins, and this isn’t against the law. A person who pays may do this, and only a person who receives payments violates the law.