Why is cryptocurrency illegal in some countries?

[dothebeats]

Although there are a lot of reasons as to why cryptocurrency is illegal in some countries, perhaps one that we are often forgetting is the reality that crypto is being used for cases of money laundering. Hence, we cannot blame some government for making it illegal to transact with cryptocurrency, maybe there have been too many of a case that they have to take legal actions regarding it. Although I know many of the replies have stated criminal act which this reason falls, I'm just static the specific.

[tranthidung]

In many countries, it isn't illegal, however the countries that have made it illegal do so for many reasons, volatility is one of the most often cited reasons, as is energy use, concerns over destabilization, or the ease with which criminals' activities can be financed and conducted using them.

They, governments, simply feel threats from Bitcoin and cryptocurrencies so they are fearful about future of their fiat currencies, CBDCs. Consequently, they have to react harshly with restrictions, bans against Bitcoin and cryptocurrencies with hope that those harsh reactions and policies can help their fiat currencies and CBDCs won't lose main roles in financial, monetary flows in their nations.

Forgetting the advantage of cryptocurrency which has over the years gained popularity amongst investors globally.

They don't forget about advantages and disadvantages of Bitcoin and cryptocurrencies for their citizens as well as side effects to their central bank systems. Because they are clearly aware about it, they do responses that they think appropriately for their systems, not for sake of their citizens' benefits.

[Olalomi]

Cryptocurrency is decentralized thus it becomes absolutely difficult for many countries to regulate it therefore there isn't any other option than to ban it by those country, the fact that some wicked people adopted cryptocurrency for money laundering for terrorist is another setback for adoption of cryptocurrency in majority of countries who had banned cryptocurrency though even before cryptos a lot of money laundering took place however it becomes imperative for most countries to checkmate and monitor all financial transactions involving crypto which is most often very difficult to track thus it was tagged as illegal.

[GbitG]

Why is cryptocurrency illegal in some countries?

Bitcoin is illegal in some countries, and there are several reasons for this. The use of Bitcoin is not illegal in most countries, but the countries that have declared it illegal do so for several reasons. The most prominent of the reasons that are often mentioned by the governments of the countries is decentralization. In addition to this, volatility has also been said to be the reason for Bitcoin being illegal. Taking this as a topic, many countries have declared Bitcoin illegal. And the most tangible evidence is presented as decentralized. And although no country wants its financial activities to be controlled, Do anything without governance or without its monitoring.

So, in my opinion, all these reasons that have been presented by different countries are all lame excuses for these countries for declaring Bitcoin illegal. The banks of these countries don't want to abandon our system and introduce a decentralized system in which everyone gets financial freedom.

[Z-tight]

In many countries, it isn't illegal, however the countries that have made it illegal do so for many reasons, volatility is one of the most often cited reasons.

We have discussed about this so many times on the forum, goverments can make any policy they want to, even if it does not make sense to us, the countries that are hostile to BTC say they do so because they want to protect their citizens from losing money through BTC, according to them BTC is unregulated and scammers can easily scam people and take away their money. Another reason they are unfriendly to BTC is because they say BTC is used for money laundering, but they forget BTC has a transparent blockchain that makes it hard for the bad guys to use it for money laundering, and they will prefer to use cash or fiat. In my honest opinion, enough of threads discussing what governments think about BTC.

[Agbe]

The reasons are well known to the authorities of those countries. And the reasons you gave are not really the main reasons if I may say. But what I can give as the reasons of this ban of bitcoin in those countries might be the authorities are out of control of the technology, and it is also new to the world system so they are still on the observation process. They want to know if really what they are saying is correct. And they can't tax the citizens of using bitcoin because it decentralized and it uses p2p. And they can only tax CEX and not the individual users of bitcoin. And if a country adopt bitcoin as a legal tender, the way I look at it, the uses of the Fiat currency will drastically reduce though just an assumption.

[SatoPrincess]

In many countries, it isn't illegal, however the countries that have made it illegal do so for many reasons, volatility is one of the most often cited reasons, as is energy use, concerns over destabilization, or the ease with which criminals' activities can be financed and conducted using them. Forgetting the advantage of cryptocurrency which has over the years gained popularity amongst investors globally. With technological involvement and industrialization, digital currencies are obtaining a satisfactory position over others, for example, bitcoin. By using cryptocurrency it is easy to transfer money without any involvement of banks and other financial l institutions. Inflation protection, due to inflation the value of so many currencies drops with this many people see cryptocurrency as offering protection against inflation. Bitcoin has a hard cap on the whole number of coins that will ever be minted.

It’s interesting to note that some countries have banned bitcoin but consider other cryptocurrencies as legal entities. This tells me that the government is not scared of digital currencies, they are only worried about decentralized currencies like bitcoin. Governments around the word want total control over the people, and anything that disrupts that system is considered unlawful. I feel sorry people who still believe the government is honest and right about their position on bitcoin and cryptocurrencies, they will never learn until they own nothing and still be happy.

[rachael9385]

It is already clear to some people that already knows little about bitcoin and those who already know much about Bitcoin, as Bitcoin is decentralized that can not be controlled by anyone even the governments and their powers that is why Bitcoin isn't legal in those countries.
But other countries that Bitcoin is legal, although Bitcoin is illegal in some countries but that doesn't stop some of the citizens from the country to make good use of it.

[Cryptomultiplier]

... for example, bitcoin. By using cryptocurrency it is easy to transfer money without any involvement of banks and other financial institutions.

To buttress this point, am sure you are aware Cryptocurrency is used in purchasing some products, like Elon Musks' Tesla,  wherein you can buy using crypto, but he stopped the use of cryptocurrency in purchase of his Tesla's.
Although recently he was interviewed on when he would allow his Tesla company resume the acceptance of Crypto for purchase of Tesla, it is rather evident that even in countries where crypto currency is not used as legal tender, it might be accepted by some businesses for purchase of their products or for services they render, based on if you are a special customer of course.

[deathcode]

although Bitcoin is illegal in some countries but that doesn't stop some of the citizens from the country to make good use of it.

Yes you are right, even though several countries have banned or making cryptocurrencies an illegal activities, in reality there are still many citizens or residents of countries that prohibit cryptocurrencies who use transactions with cryptocurrencies and have several assets in cryptocurrencies.

In fact, there are many reasons put forward by governments in various countries to reject or prohibit cryptocurrencies in their respective countries. But in my opinion the source, root cause or main reason for all these bans is because the government cannot or does not have full control and control over the distribution, use and value of crypto assets themselves because of their decentralized nature.
Because they cannot control it completely, this raises several concerns about the misuse of cryptocurrency for illegal activities such as money laundering, funding for acts of terrorism, can't tax it and other misuse of cryptocurrency that can harm or collapse the economic and banking system in force in their country.

[serjent05]

In many countries, it isn't illegal, however the countries that have made it illegal do so for many reasons, volatility is one of the most often cited reasons, as is energy use, concerns over destabilization, or the ease with which criminals' activities can be financed and conducted using them. Forgetting the advantage of cryptocurrency which has over the years gained popularity amongst investors globally. With technological involvement and industrialization, digital currencies are obtaining a satisfactory position over others, for example, bitcoin. By using cryptocurrency it is easy to transfer money without any involvement of banks and other financial l institutions. Inflation protection, due to inflation the value of so many currencies drops with this many people see cryptocurrency as offering protection against inflation. Bitcoin has a hard cap on the whole number of coins that will ever be minted.

It would be easier to read if you tabulated the list of reasons why cryptocurrency is illegal in some countries.  I believe despite these reasons, the major one is that the government cannot control the network of cryptocurrency specifically Bitcoin.  They, the government,  don't want to engage in something that they have no control over.  Until they have formulated proper regulations for cryptocurrency,  I think they will maintain the restriction of cryptocurrency in their country.

[ajiz138]

Because they want to be able to control people's money, another factor is that because fiat will be more useful to the state than bitcoin they can regulate everything.

Well the government's concern about bitcoin is because: Volatility, fluctuations, can still be manipulated by the pope, range to money laundering, often committed crimes including hackers maybe that's a factor where the state thinks.
Fully not only that but the government cannot control if it adopts bitcoin full history, the state will also think about the economic impact if its citizens become financially independent because of using bitcoin.

So now it is still very rare for bitcoin as legal tender except for a few countries, but other countries still prohibit it and only for investment assets.

[albon]

By using cryptocurrency it is easy to transfer money without any involvement of banks and other financial l institutions.

What I quoted from your writing is among the real reasons behind making cryptocurrencies illegal in some countries and banned in their laws; these cryptocurrency transactions are made through a decentralized system without the intervention of central banks and governments, and because of the price fluctuations and risks investors face.

It is worth noting that although some countries have banned it, many countries have made it legal and made it the official currency of the country, and many Arab countries have taken the lead in adopting Bitcoin and cryptocurrencies, such as the UAE, What I see is that it is a matter of time and some of these countries that have not yet made bitcoin legal will turn to digital transformation and all financial transactions, government services, and taxes will be through crypto after dealing with it is legalized.

Bitcoin and decentralization have a lot of solutions that have eliminated banking hurdles and wasted people's valuable time with slow banking transactions and strict procedures. In addition, it is also an area for investment and improving living conditions. These countries can benefit from the cryptocurrency sector, which includes major companies and platforms for investment in these countries.

[Rengga Jati]

In many countries, it isn't illegal, however the countries that have made it illegal do so for many reasons, volatility is one of the most often cited reasons, as is energy use, concerns over destabilization, or the ease with which criminals' activities can be financed and conducted using them. Forgetting the advantage of cryptocurrency which has over the years gained popularity amongst investors globally.

There are several factors that might influence it.
Like the volatility that you have explained. Under the pretext that they want to protect their citizens from various losses resulting from the volatility that exists in Bitcoin.

Not only that, the many negative issues about Bitcoin are also a reason for those who don't like implementing illegal regulations in their country. In this case, governments (although perhaps not all, but most) agree and consider that Bitcoin has more negative impacts than positive. They may think that Bitcoin or cryptocurrency is not real, has no backup, and cannot be held. Not only that, there is no guarantee that the price will continue like that. This is the purpose of their protection of their citizens.

Apart from that, there may also be other negative issues, namely that Bitcoin is decentralized so the government cannot control it.

However, behind that reason, there are already many citizens who have been helped thanks to Bitcoin and are able to continue their lives well with Bitcoin. Because after all, as long as we can optimize the positive side of Bitcoin then it will be very profitable for everyone.

[EFS]

There are more than 200 countries in the world and every country have different laws. Every country have a different way of looking at things. We can explain this for many reasons such as culture, level of development, socio-economic order, political power, etc.
The sovereign power of the state is to print money. The state doesn't want forces outside itself to dominate money. Bitcoin is a money they can't control, so it's only natural that they take a hard line against it. States don't like anything they can't control, but when they learn to take advantage of it they will look at it differently. It's only a matter of time.

[agustina2]

Hey, I saw the first line of your statement came here:

https://www.investopedia.com/articles/forex/041515/countries-where-bitcoin-legal-illegal.asp#:~:text=While%20Bitcoin%20is%20welcomed%20in,%2C%20money%20laundering%2C%20and%20terrorism.

Is that your website or article?

Anyways, different countries have different approaches to cryptocurrency. If you want to know the details specifically, you can search the specific country by hitting your preferred search engine added with the keyword "why the cryptocurrency is banned in..".

[jeraldskie11]

It's just simply because government cannot control Bitcoin. They are afraid that if people starts to use Bitcoin, it will lead to the downfall of their economy of their country. But it's just their thinking because of the fact that they can't control and they didn't know exactly what it is. Aside from that, they might afraid of the idea that criminals can use Bitcoin so that they can still live without exposing themselves by working in the outside which can be difficult to track.

Countries who banned Bitcoin didn't really know the worth of Bitcoin, and how it help to boost the economy of the country. Using Bitcoin is a fast transactions, so it will be lessened the time cost especially if you have to pay something far in your place. And also, Bitcoin is made for people who didn't want to hide their identity from scammers and criminals because honestly, if someone notices you have a lot of money your life will put in a risky situation where you can't go somewhere alone.

[Mr.suevie]

Although there are a lot of reasons as to why cryptocurrency is illegal in some countries, perhaps one that we are often forgetting is the reality that crypto is being used for cases of money laundering. Hence, we cannot blame some government for making it illegal to transact with cryptocurrency, maybe there have been too many of a case that they have to take legal actions regarding it. Although I know many of the replies have stated criminal act which this reason falls, I'm just static the specific.

That's true because this is basically the major reason and excuse most government have used to actually try to restrict their citizens from gambling and that's why majority of these countries have ban crypto because if the inability of them of to actually trace and follow up with the movement of money flow but same fit can also be achieved if well plan with the fiat currency too.

Although many countries will later see bitcoin from a more better perspective than a currency for illegal activities. Only time will tell and I strongly believe that this notion will be changed.

[AmoreJaz]

Although there are a lot of reasons as to why cryptocurrency is illegal in some countries, perhaps one that we are often forgetting is the reality that crypto is being used for cases of money laundering. Hence, we cannot blame some government for making it illegal to transact with cryptocurrency, maybe there have been too many of a case that they have to take legal actions regarding it. Although I know many of the replies have stated criminal act which this reason falls, I'm just static the specific.

That's true because this is basically the major reason and excuse most government have used to actually try to restrict their citizens from gambling and that's why majority of these countries have ban crypto because if the inability of them of to actually trace and follow up with the movement of money flow but same fit can also be achieved if well plan with the fiat currency too.

Although many countries will later see bitcoin from a more better perspective than a currency for illegal activities. Only time will tell and I strongly believe that this notion will be changed.

some government just need to be educated on this market, so they won't be very strict about it. i can understand at the early stages of introduction of this market. however, there are so many materials now that they can read and refer to what this market is all about. i guess, one major reason for them is indeed they have no control on what's happening in this market. however, if they will educate themselves as well as their people, they can surely get something out of this market, rather than sending all the money to the black market.

[hatshepsut93]

By using cryptocurrency it is easy to transfer money without any involvement of banks and other financial l institutions.

Governments want your money to be moved through those institutions, because those institutions are obligated to share data with the government. Bitcoin is a threat to authoritarian regimes, because they can't control it like they can control centralized payment systems.