Why is cryptocurrency illegal in some countries?

[Bobrox]

My negative opinion towards them is because of the fear of not being able to share in the profits if they legalize it. The government runs a government system with their control over all aspects including economic aspects. They want complete control of the financial system.
If they legalize Bitcoin as legal tender, they can't control it. Some cryptocurrencies that get controlled may not be so strict.
Who knows what their fears are about Bitcoin, they are trying hard on a CBDC that I don't believe will be completely successful.

Absolutely, all government have control well all aspect and difficult if Bitcoin have been legal currency transaction have powerful how to make price stable, seems government aware with their people when investing or using bitcoin as legal payment currency get impact with price drop later because current bitcoin price up and down outside of government controlling. Beside have competitor with some country against Bitcoin become legal payment transaction due awareness one day later Bitcoin will more dominance and fiat currency will loss their position replacing by Bitcoin.
During bitcoin not restrict or banned by government have been enough for us who get benefit with investment and keep consistency trading bitcoin as our side job or could be main job to earn profit.

[Issa56]

There were always scammers, long time before Bitcoin. It's not the reason governments making it illegal, it's just an excuse.

I keep on asking people maybe people were not being scammed before the existence of bitcoin, which currency was being used by scammers then? And why is it that the government didn't declare the currency illegal then? The government is just fighting for their own selfish interests, they know they can't control bitcoin, which is why they are just against it, and they need a currency that they can control. All those reasons that they are giving are just excuses, they know what bitcoin is really about and they know how useful it is, but they are fighting against it because they won't be controlling it and they won't be benefiting directly from it.

Each country has not approved cryptocurrencies in their country for different reasons. The government of some countries may not want the people of their country to keep money in crypto currency instead of keeping money in the bank, while the government of some country may think that more criminal acts may be committed through crypto currency and to prevent that crime, the government of some country does not allow Bitcoin in their country. And the governments of those countries whose economic conditions are economic class do not want their countries to be transacted through bitcoin or cryptocurrencies because they may think that if their countries allow bitcoin or cryptocurrencies they will not be able to maintain their economic conditions.

All governments are against bitcoin for almost the same reason, all of them are just sides to split the reasons, all of them will say bitcoin is used for illegal activities, but we all know that that's not the main reason why they are against it, it's just an excuse. If most countries legalize bitcoin, then the banking sector is already gone, no one will be making use of banks again. People will rather keep their money in their wallets and make transactions with bitcoin. That's why even banks are fighting against bitcoin because they know it's going to affect them.

[Silberman]

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.

Bitcoin takes away some of the power banks and governments have accumulated over the years, tell me, do you think they like it? And as you may guess the answer to that is no, governments do not like it as bitcoin allows a person to bypass their money printing policies, or to put it in other words, they cannot use the inflation tax against you, and banks do not like it as their job as a middleman is not needed anymore, then it is not surprising that both are making movements to try to limit the adoption rate of bitcoin all over the world.

[lombok]

Each country has its own considerations and policies. Whether BTC is legal or illegal in a country is also influenced by economic conditions, cyber conditions and much more. For example, in a country prohibiting BTC as a legal means of payment and making BTC illegal, this aims to stabilize the circulation of their currency so that it does not decline or for some other reason such as BTC has not been accepted because many people in that country are not ready due to lack of information. It is feared that there will be mass panic due to BTC's wild volatility, this will actually increase the burden on the government. I am sure that every country knows what BTC is and continues to carry out research and learning so that it does not rule out the possibility that BTC will be legalized in the future.

[fuguebtc]

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.

Bitcoin takes away some of the power banks and governments have accumulated over the years, tell me, do you think they like it? And as you may guess the answer to that is no, governments do not like it as bitcoin allows a person to bypass their money printing policies, or to put it in other words, they cannot use the inflation tax against you, and banks do not like it as their job as a middleman is not needed anymore, then it is not surprising that both are making movements to try to limit the adoption rate of bitcoin all over the world.

Indeed, bitcoin's decentralization brings us a lot of benefits, but for the government it is not good at all because they need more centralization to consolidate power. If they lose control of their citizens, it means they will collapse. So, it's no surprise or shock that governments don't like bitcoin and ban it. I think Satoshi himself foresaw this when he created bitcoin and that's why he decided to remain anonymous and leave no trace. But the question is, can the government ban bitcoin forever? When people defy the ban to use bitcoin.

[kryptqnick]

The op lists common reasons for banning Bitcoin and other cryptocurrencies, so I'm not sure that it's even a question.
Of course, officially cited reasons may be different from actual reasons, and the actual ones may involve the desire to have more control over the population, as well as successful lobbying by banks leading to the government defending their interests.
Looking through the thread, it seems to me that many of us here share the view that the desire of more oversight, control over citizens is among the top reasons.

[angrybirdy]

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.

Bitcoin takes away some of the power banks and governments have accumulated over the years, tell me, do you think they like it? And as you may guess the answer to that is no, governments do not like it as bitcoin allows a person to bypass their money printing policies, or to put it in other words, they cannot use the inflation tax against you, and banks do not like it as their job as a middleman is not needed anymore, then it is not surprising that both are making movements to try to limit the adoption rate of bitcoin all over the world.

Indeed, bitcoin's decentralization brings us a lot of benefits, but for the government it is not good at all because they need more centralization to consolidate power. If they lose control of their citizens, it means they will collapse. So, it's no surprise or shock that governments don't like bitcoin and ban it. I think Satoshi himself foresaw this when he created bitcoin and that's why he decided to remain anonymous and leave no trace. But the question is, can the government ban bitcoin forever? When people defy the ban to use bitcoin.

Aside from the said reason above, the government will not track the transactions of its people and the bank will lose a lot of its client. They also think that it is possible that it can be used in illegal activities and they have no counter-measure if this happen. It is also possible that the country is not yet ready to adopt the technology to do transactions online.

[aylabadia05]

My negative opinion towards them is because of the fear of not being able to share in the profits if they legalize it. The government runs a government system with their control over all aspects including economic aspects. They want complete control of the financial system.
If they legalize Bitcoin as legal tender, they can't control it. Some cryptocurrencies that get controlled may not be so strict.
Who knows what their fears are about Bitcoin, they are trying hard on a CBDC that I don't believe will be completely successful.

You are right, that is the most reasonable reason as to why the government is not legalizing it. But governments often don't state this main reason because they argue there are specific reasons why bitcoin should not be legalized as currency. We often hear that bitcoin are used for illegal actions that violate the law, but that is the other side they talk about the use cases of bitcoin.

Talk of Bitcoin being misused is still a strong reason for them not to legalize it. We are sometimes confused by the government's unclear attitude regarding this matter. We want to say that they are organizers who are good at lying on one side of the truth because they are not consistent with the reasons that have been issued. On the one hand, they continue to address the issue that Bitcoin is often used for illegal actions, while they also continue to try with CBDC, which has many ways to go.

Misuse of bitcoin has been the main reason why governments don't legalize it, but I'm sure it's not the main reason they should reveal. The government's supposed inability to control bitcoin is the main reason why they don't want to legalize it.

I agree and for me it is very suitable for their situation. They really don't have any more ability to control Bitcoin even though they have all the power to block other things but are unable to control Bitcoin.
They are very petty.

[snip]

During bitcoin not restrict or banned by government have been enough for us who get benefit with investment and keep consistency trading bitcoin as our side job or could be main job to earn profit.

For certain countries that do not restrict the use of Bitcoin, they are very grateful, but for countries that are very opposed to Bitcoin, they will not open up space to their citizens in the slightest, it is regrettable. Perhaps by providing space for the use of Bitcoin as an investment and trading asset, the government of a country has carried out its role as a state administrator well because its citizens can earn income from the trading and investment activities they carry out.

[CryptopreneurBrainboss]

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.

Most countries haven't banned Bitcoin but have established an unfriendly environment for Bitcoin to grow in the country. The only reason I see why the government is banning Bitcoin is because Bitcoin is decentralized and they know they can't regulate or control it. All the other reasons they're giving is a lie as it doesn't have enough merit to ban Bitcoin. The excuse of Bitcoin been used by criminals and they can't be tracked is a lie because Bitcoin is operated on a public ledger that the government or anyone can have access to but fiats is the most used currency for crime and yet the government hasn't ban it for centuries. Bitcoin price been unstable isn't a weakness but an advantage for traders to take opportunity of the volatility of the price to make profits.

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 institutions

The government are threatened by this fact that their financial institutions (the banks) that they use to monitor their citizens are no longer important in finalizing a transaction. Transaction can now be done without needing a third party and the transaction are 10x faster than when banks are been used and there's no limitations. The government knows the potential of Bitcoin and that's why they're trying so hard for it not to succeed but they have failed before they already started because Bitcoin doesn't need the government approval to establish itself in the finance sector. It just newer time and adoption which can be gotten through awareness and all this will happen in the nearest future.

[sokani]

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.

Volatility is never the reason why cryptocurrency is not accepted in some countries. Cryptocurrency like Bitcoin is a uncensored, temper-proof, decentralized, digital currency that puts power in the hands of the people. Government cannot control the way people spend their money because it cannot be frozen, so they see it as a threat to fiat.

All transactions with cryptocurrency are registered on the blockchain. It cannot be doctored and it can be traced unlike fiat transactions that can be deleted or erased from the system. BTW, research has it that fiat^[1] is the most laundered currency in the world by criminals.

1. https://www.zippia.com/advice/money-laundering-statistics/

[abel1337]

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.

Volatility is never the reason why cryptocurrency is not accepted in some countries. Cryptocurrency like Bitcoin is a uncensored, temper-proof, decentralized, digital currency that puts power in the hands of the people. Government cannot control the way people spend their money because it cannot be frozen, so they see it as a threat to fiat.

All transactions with cryptocurrency are registered on the blockchain. It cannot be doctored and it can be traced unlike fiat transactions that can be deleted or erased from the system. BTW, research has it that fiat^[1] is the most laundered currency in the world by criminals.

1. https://www.zippia.com/advice/money-laundering-statistics/

Government are simply scared that they can't control it and they have no power to do anything about the transaction. The only thing they can do is to simply regularize in using it or ban it in their countries. They show what bitcoin can be use on negative things like money laundering, increased scams and others but they hide the fact that they won't capitalize in it. We know where we are headed but we can't do anything if these countries ban the unstoppable future.

[JunkieMiner]

You can ask the president of those countries, not users in this forum.

Since I'm not one of the president in those countries, my assumption is centralized entity don't want to let their citizen to use Bitcoin to evade tax or safe/invest that related to centralization e.g. fiat, stock, gold, real estate.

This thing happen in our country, crypto is illegal and no one trying to make it legal or going to court for the sake of making crypto legal in our country, as this also puts some difficulties for the government, as in our country the government is not issuing because they want their currency (Rs) to be on the top. And so many other problems has been here.

[suzanne5223]

Each country has its own considerations and policies. Whether BTC is legal or illegal in a country is also influenced by economic conditions, cyber conditions and much more. For example, in a country prohibiting BTC as a legal means of payment and making BTC illegal, this aims to stabilize the circulation of their currency so that it does not decline or for some other reason such as BTC has not been accepted because many people in that country are not ready due to lack of information. It is feared that there will be mass panic due to BTC's wild volatility, this will actually increase the burden on the government. I am sure that every country knows what BTC is and continues to carry out research and learning so that it does not rule out the possibility that BTC will be legalized in the future.

You're right and apart from what you listed the truth is that cryptocurrency will not be universally legal because some of the people in the government are not updated with modern technology and never understand the real concept of cryptocurrency their belief is that is mainly something for money laundering, terrorist financing, and tax evasion. Other things that will make crypto illegal in some countries are no consumer protection,lack of regulation, and native laws and regulations due to religion.
If the Bitcoin spot ETF is accepted we may see some change.

[Bananington]

Each country has its own considerations and policies. Whether BTC is legal or illegal in a country is also influenced by economic conditions, cyber conditions and much more. For example, in a country prohibiting BTC as a legal means of payment and making BTC illegal, this aims to stabilize the circulation of their currency so that it does not decline or for some other reason such as BTC has not been accepted because many people in that country are not ready due to lack of information. It is feared that there will be mass panic due to BTC's wild volatility, this will actually increase the burden on the government. I am sure that every country knows what BTC is and continues to carry out research and learning so that it does not rule out the possibility that BTC will be legalized in the future.

You're right and apart from what you listed the truth is that cryptocurrency will not be universally legal because some of the people in the government are not updated with modern technology and never understand the real concept of cryptocurrency their belief is that is mainly something for money laundering, terrorist financing, and tax evasion. Other things that will make crypto illegal in some countries are no consumer protection,lack of regulation, and native laws and regulations due to religion.
If the Bitcoin spot ETF is accepted we may see some change.

Frankly so. Cryptocurrency can be also considered illegal in some countries because it is the individuals power over his/her finance. The government gets off on keeping the citizens under control by having a say in the resources available to them and even hiking and causing scarcity because they simply want to. Besides the fact of money laundering, crypto allows transaction across border without anyone even knowing.

[GeorgeJohn]

From the onset bitcoin has been having challenges and many government never believed that bitcoin will be as strong it's today, in bitcoin, its running a decentralized currency in which is not centralized and since its not centralized many countries rise against the technology behind bitcoin development, and mostly all their mindset goes this way that bitcoin the technology the aim or objective of it as a decentralized system of currency is to embezzled funds without been traceable, so with this concept I believe that is while bitcoin have no ground of at least two influential accept it or embrace it as a legal tender.

[serjent05]

Each country has its own considerations and policies. Whether BTC is legal or illegal in a country is also influenced by economic conditions, cyber conditions and much more. For example, in a country prohibiting BTC as a legal means of payment and making BTC illegal, this aims to stabilize the circulation of their currency so that it does not decline or for some other reason such as BTC has not been accepted because many people in that country are not ready due to lack of information. It is feared that there will be mass panic due to BTC's wild volatility, this will actually increase the burden on the government. I am sure that every country knows what BTC is and continues to carry out research and learning so that it does not rule out the possibility that BTC will be legalized in the future.

You're right and apart from what you listed the truth is that cryptocurrency will not be universally legal because some of the people in the government are not updated with modern technology and never understand the real concept of cryptocurrency their belief is that is mainly something for money laundering, terrorist financing, and tax evasion. Other things that will make crypto illegal in some countries are no consumer protection,lack of regulation, and native laws and regulations due to religion.
If the Bitcoin spot ETF is accepted we may see some change.

Frankly so. Cryptocurrency can be also considered illegal in some countries because it is the individuals power over his/her finance. The government gets off on keeping the citizens under control by having a say in the resources available to them and even hiking and causing scarcity because they simply want to. Besides the fact of money laundering, crypto allows transaction across border without anyone even knowing.

The government banned cryptocurrency because of its feature that goes against their regulation.  Since cryptocurrency has decentralized nature, some government find it too hard to accept because they can't implement their national law immediately, so while the government is creating and reviewing policy for cryptocurrency, the government thinks that it is better to ban them than implementing them without proper regulations to avoid conflict and confusions.

[lombok]

~snip~

The government banned cryptocurrency because of its feature that goes against their regulation.  Since cryptocurrency has decentralized nature, some government find it too hard to accept because they can't implement their national law immediately, so while the government is creating and reviewing policy for cryptocurrency, the government thinks that it is better to ban them than implementing them without proper regulations to avoid conflict and confusions.

More or less like that too. Due to its decentralized nature, the room for creating a single profit is also reduced. If the nature of BTC were the other way around, I'm sure countries around the world would quickly legalize it. The government needs another version of Bitcoin or crypto which may be like the currency currently circulating, which is why many CBDC issues have emerged. CBDC is capable of being moved, capable of being regulated and capable of carrying the burden of the government's wishes with all the control of the government that issued it. Meanwhile Bitcoin or other crypto is driven by the community. Who is in power in crypto, a group or individual who holds a lot of coins in my opinion.

Please correct me if I'm wrong.

[legendbtc]

~snip~

The government banned cryptocurrency because of its feature that goes against their regulation.  Since cryptocurrency has decentralized nature, some government find it too hard to accept because they can't implement their national law immediately, so while the government is creating and reviewing policy for cryptocurrency, the government thinks that it is better to ban them than implementing them without proper regulations to avoid conflict and confusions.

More or less like that too. Due to its decentralized nature, the room for creating a single profit is also reduced. If the nature of BTC were the other way around, I'm sure countries around the world would quickly legalize it. The government needs another version of Bitcoin or crypto which may be like the currency currently circulating, which is why many CBDC issues have emerged. CBDC is capable of being moved, capable of being regulated and capable of carrying the burden of the government's wishes with all the control of the government that issued it. Meanwhile Bitcoin or other crypto is driven by the community. Who is in power in crypto, a group or individual who holds a lot of coins in my opinion.

Please correct me if I'm wrong.

You mean, if bitcoin were centralized then the government would be immediately legal? That will never happen either, because if bitcoin becomes centralized then it is no more than junk, like fiat or a government-created asset. It would be useless and no one would need it and the government could create much better things than it. So if bitcoin is centralized, they won't have the headache of figuring out how to handle it.

[Luzin]

You mean, if bitcoin were centralized then the government would be immediately legal? That will never happen either, because if bitcoin becomes centralized then it is no more than junk, like fiat or a government-created asset. It would be useless and no one would need it and the government could create much better things than it. So if bitcoin is centralized, they won't have the headache of figuring out how to handle it.

There is no world rule that definitely prohibits Crypto from developing. So some States have the power to set policies, definitely using the power to regulate them. Although they regulate because there are advantages to be had in crypto activities such as taxes. But there are countries that have banned it like China. Governments can never turn crypto into a centralized one. The community will never agree. They can only touch crypto from the outside with rules that keep governments from losing money and so as not to become a threat to their financial circulation. I am currently very happy with my country's policies as they are still giving crypto room to continue to grow.

[jasonjm]

There could be many reasons that countries are not legalizing cryptocurrency. The price volatility and regulation is the main reason. Apart from this, money laundering, scams, terrorism financing, and the risk of losing money because the anonymity is high. As Bitcoin is decentralized, it is difficult to monitor transactions and implement taxation. The Governments will not have control over the money/ financial transactions and feel powerless because they want to control everything. Some countries are looking to regulate cryptocurrency, and we might see some implementation in the near future.