Why Governments Ban Cryptocurrency {Bitcoin}

[ZAINmalik75]

Countries ban bitcoin for different reasons, some, the government (president) didn't even know anything about crypto but the financial advisers gave the wrong information or they advise the government wrongly on cryptocurrency.
If the financial advisers gave the right information on cryptocurrency many countries would have adopted bitcoin in their countries. Some of them were trying to prevent their citizens from internet fraudstars and scammers probably because of the previous experienced in the country.

You are right, the financial advisors of the countries that have banned it are not that aware of the cryptocurrency and blockchain technology. They just are following the books and rules they have studies and not getting out of there comfort zones to yes out new things. In simple words they are playing it safe and don't want to get involve in some extra activities because they are just passing there time in there government jobs.

It's the open freelancers who I think have to work for such things, against such bans. In our country Waqar Zaka is the main player against the ban on crypto but he was threatened by those who are against the crypto. But still he is standing for all of the crypto community.

In short, governments of developing countries do not want to test new technologies because they know at the end they have to spend money and have to hire professionals for the implementation of the system. That's why they are banning crypto. In my opinion they should at least get some education first about crypto then make such decisions.

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[Hamza2424]

It's the open freelancers who I think have to work for such things, against such bans. In our country Waqar Zaka is the main player against the ban on crypto but he was threatened by those who are against the crypto. But still he is standing for all of the crypto community.

Well, Personally, I don't admire him as most of my community members do, as what I had experienced with him showed me a completely different personality, selfish, man of words not of action, and blah blah. For those people whom are you indicating I can assure are very well aware of this technology and for a long period of time they have been using the crypto market for their money laundering purposes.

In short, governments of developing countries do not want to test new technologies because they know in the end they have to spend money and have to hire professionals for the implementation of the system. That's why they are banning crypto. In my opinion they should at least get some education first about crypto then make such decisions.

They are ignoring this market to be undeveloped because they do not want to get trapped in their own net, as they are beneficiaries of this medium when they set up proper legalization there will be questions about their previous records, as it's not NAB, or FBR where they can change the whole investigation reports, its blockchain with proper analysis they can be tracked out how much they've laundered in last few years, Shity people. Simply they want it undeveloped and use this medium as long as they can because there i no rule of law. After a few years public will forget and they will get a clean chit from those idiots who think they are the smartest minds alive in the world.

[bhadz]

If it's about the financial advisers then that means that they've got some own agenda that they want to happen so they advise poorly and wrongly to the leaders, presidents, and prime ministers. But IMHO, let the finance department decide all of that and then with the help of their own SECs. The problem with some SECs, they don't really like it so the function they have is being followed and they think that they're doing the right thing of not allowing it. And for some governments, it is that there's really no way that they will like it because they don't understand it.

[BlackHatCoiner]

The main reason governments hate bitcoin is because it sets them back in terms of financial traceability. You can't regulate a Bitcoin transaction, just as you can't regulate a transaction with cash (which was long hated). If a person wants to make an anonymous transaction in the Internet, they'd absolutely want to avoid everything the government controls of, so there you go; bitcoin is the effective solution to that problem.

Aside from that, many scam companies make use of crypto to scam their investors and the government saw it and wanted to prevent it from happening by banning cryptocurrency

Many scammers also make use of cryptography, computers, the Internet etc., but you don't ban those. So, cryptocurrency is clearly not the fault here. It's the scammers.

[usekevin]

The Bitcoin had successfully completed the decade of survive in the investment.After the celebratory get into the cryptocurrency,the vast population get into the investment of cryptocurrency.So the country with less economy fear of the their economy will be covered by the cryptocurrency.If the trader uses the cryptocurrency and not involve in the stock trading,it will reduce the people paying taxes for the stock investment.Because most of the stock investors had their money in the cryptocurrency and they won't pay taxes to the government for the cryptocurrency investment.

[dothebeats]

There are already a few threads that discussed this topic, I'll leave some here.

https://bitcointalk.org/index.php?topic=5468428.0
https://bitcointalk.org/index.php?topic=5468635.0

Anyway, although in the country I live in Bitcoin isn't much given attention to by government, meaning there are no laws that cater to it, it is common knowledge and belief that the reason as to why governments ban crypto or bitcoin is due to how they are not able to control it. It is as simple as that. Something outside of their control is seen as a bad thing for them.

[famososMuertos]

...//...::

^{#TBT Topic}
It is not about "prohibiting" because it is bitcoin, it is about transnational interests, that is, (1) they are interested in bitcoin, they remove the prohibition. (2) They have doubts about what they to do, is easy, they legislate, and! when they ignore it, they prohibit it.
Governments, Is not always that way acted thinking of " protect" its citizens.

What they do is "spin" their interests to the convenience of what was mentioned: remove the prohibition, legislate, prohibit.(1),(2),(3) or (3),(2),(1) and (1),(3),(2)...

[Bananington]

China is already accepting BTC as it is, though not in a large scale or as a legal tender, but for payments and transaction and even mining purposes.
Government bans BTC or cryptocurrency because of many exchanges and coins that has failed or crashed and along with it goes all the investors funds. The government wants citizens to be careful and it is to also reduce the instance of money laundering which can be undetected in the decentralized network easily.

Another is to control the citizens by keeping them reliant on the government jobs or office jobs for survival instead of an individual having the financial freedom to overlook the importance of government.
El Salvador and some countries use BTC and it is a legal tender. Other countries not doing so are observing the doings of the countries doing so and in time will cue in when it has gained a reasonable amount of adoption worldwide.

[The Cryptovator]

The government will never allow Bitcoin to rule above their currency. Otherwise, they will lose control of the financial ecosystem. That's the main reason why the government doesn't want to adapt Bitcoin. It's true that even a lot of countries don't know Bitcoin very well. But those who are well aware of Bitcoin are worried about the decentralised power of Bitcoin. But I think Bitcoin should be usable for everyone. Because even the government wants to ban it officially, but they can't prevent people from using it.

[AmoreJaz]

The government will never allow Bitcoin to rule above their currency. Otherwise, they will lose control of the financial ecosystem. That's the main reason why the government doesn't want to adapt Bitcoin. It's true that even a lot of countries don't know Bitcoin very well. But those who are well aware of Bitcoin are worried about the decentralised power of Bitcoin. But I think Bitcoin should be usable for everyone. Because even the government wants to ban it officially, but they can't prevent people from using it.

its decentralised nature is i believe the major reason why a lot of governments are not on this market. as they have no control of what's going on, what they can do is just regulate of its existence in the market.
and since the govt has no upper hand on this market, they can't totally ban the usage of this currency even if they want to.

[pixie85]

The governments usually operate in 1 and 0. They have to take a stance for or against something and to them bitcoin doesn't carry enough weight to be worth their time.

-To an average politician bitcoin is difficult, takes time to master
-Bitcoin doesn't have enough supporters to fight for their votes at least in many poor countries. In the US or the EU the situation is different, but in some Arab countries the number of people interested in crypto is negligible.
-Bitcoin can be easily labeled as a money laundering tool and currency used by hackers, scammers and drug dealers, so it's easy to find arguments to support your stance against it. To support it you have to know something about it and that gets us back to the first point.

[serjent05]

The government will never allow Bitcoin to rule above their currency. Otherwise, they will lose control of the financial ecosystem. That's the main reason why the government doesn't want to adapt Bitcoin. It's true that even a lot of countries don't know Bitcoin very well. But those who are well aware of Bitcoin are worried about the decentralised power of Bitcoin. But I think Bitcoin should be usable for everyone. Because even the government wants to ban it officially, but they can't prevent people from using it.

Bitcoin is an important digital currency, it aides in traders and investors gaining and printing cool profits since its existence, though cryptocurrency is for the smart individuals.

The use of cryptocurrency is for everyone, but smart individuals profit from it.

Government are in power and won't be reluctant and allow cryptocurrency exceeds the current value of the country's legal tender. Not all countries would welcome the idea of making bitcoin a legal tender because of fear of running the economy into liquidation, because citizens will focused on cryptocurrency and abandoning the currency which will simply record heavy decrease in value.

Not only the citizens transitioning to Bitcoin but if the government makes Bitcoin their main currency, the government will lose control over its economic activities since Bitcoin whales can manipulate their economy due to having a huge amount of Bitcoin in their stash.  Whales can easily crash the market thus creating a negative impact on a country's economic affairs.

[mvdheuvel1983]

Above are few threads that discussed much about the governments, their plans, and why they want bitcoin to be banned. Rather than discussing again on the similar topic it is good to discuss in the opposite way, what benefits bitcoin can bring to a country when adopted as legal tender as we don't have countries other than El Salvador.

Bitcoin offers many benefits when adopted by a country. Bitcoin do not have to topple the Fiat in a country when used together with a country's currency it strengthens it. If bitcoin is adopted in more countries other than El Salvador those countries would experience an increase in the wealth of its citizens. Another benefit is that such a country would become even more technological advanced in terms of payment systems and even cyber security. And if it is a country where there is a high rate of crime we might see that with the adoption of Bitcoin where most citizens of the country have bitcoins they might be a drop in crime rate because of course the way it will be equally distributed across the citizenry.

[uneng]

Governments which ban Bitcoin have a common characteristic among themselves, despite presenting different reasons for the ban: they have overcontrolling tendencies and don't take the individuality of citizens as a postive trait for the rise and development of the country.

These governments want to shape the society on the path they think it's ideal in theory. Anyone who goes against it must be punished and cancelled. So decentralized tools which empower citizens in an autonomous way are completely censored, especially Bitcoin which brings a decentralized concept into finances.

Overcentralized governments want to know everything people are doing in real time, and Bitcoin makes this harder for them, although not completely impossibilitates.

[yazher]

I think there are more reasons why they are just banning bitcoins and want to disconnect themselves in any way shape or form regarding cryptocurrency. due to the fact that some people are still ignorant of it, their people might become prone to many Ponzi scheme scammers that are on the loose who used bitcoins as their props to fool people. it's important that they have some basic knowledge first and some preventive measures on how to protect themselves from such scammers and hackers as well, in order to save themselves from false investment platforms and other scenarios that lead them to lose all their savings. that's why some governments take countermeasures in order to protect their citizen but as soon as their people are aware of all of this they lift the ban and stay neutral about it.

[Blitzboy]

The governments usually operate in 1 and 0. They have to take a stance for or against something and to them bitcoin doesn't carry enough weight to be worth their time.

-To an average politician bitcoin is difficult, takes time to master
-Bitcoin doesn't have enough supporters to fight for their votes at least in many poor countries. In the US or the EU the situation is different, but in some Arab countries the number of people interested in crypto is negligible.
-Bitcoin can be easily labeled as a money laundering tool and currency used by hackers, scammers and drug dealers, so it's easy to find arguments to support your stance against it. To support it you have to know something about it and that gets us back to the first point.

You make a valid point, and indeed, the perception of Bitcoin by governments often tends to be binary. Heres my take on it. For governments, especially in regions with low Bitcoin awareness, they often resort to the familiar. Its always easier to reject what one doesnt understand. And as you rightly said, for many politicians, understanding Bitcoin is time-consuming, and the lack of widespread support doesnt help either.

However, isnt the very nature of innovation to challenge established norms and systems? And with that challenge, often comes resistance. Its easy for them to label Bitcoin as a tool for illicit activities, but isnt every technological advancement vulnerable to misuse? Computers, the internet - all had their fair share of skepticism. Yet, here we are.

The real issue here, might be the fear of change. Governments fear the unknown, and Bitcoin, for many of them, is still an enigma. Educating them, then, becomes the community's shared responsibility

[GreatArkansas]

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more. Because the government is afraid of bitcoin

Government are not afraid of Bitcoin, the main reason other countries are banning cryptocurrency because they don't have control over the cyrptocurrency system and the government does not want to let decentralized project to take over their financial system.  Aside from that, many scam companies make use of crypto to scam their investors and the government saw it and wanted to prevent it from happening by banning cryptocurrency
(...)

Yep, most governments are just afraid of their people or the protection of the consumers. As we all know, a lot of tragedies are already happening in the cryptocurrency market where millions/billions have already been lost due to scam/hacking incidents or illicit activities.

[lixer]

Actually bitcoin is not very private, because everyone can see transactions on the blockchain as well as wallet addresses.

Does your wallet address or the wallet itself shows your name or anything that can show your identity to someone? No, it doesn't, and that is the reason why Bitcoin is said to be pseudonymous which means that one can see your transactions or the balance but they can't know who is actually behind that wallet and that is enough privacy in my opinion. No one will ever know that a certain wallet is yours unless you have given your address to someone yourself and told them that it's your wallet address.

This is also one of the reasons why governments are mostly against Bitcoin because it promotes privacy and decentralization, and the authorities will barely be able to identify the owner of a certain wallet or a transaction unless they find a way to regulate all the transactions using some sort of KYC or something.

[hd49728]

Does your wallet address or the wallet itself shows your name or anything that can show your identity to someone? No, it doesn't, and that is the reason why Bitcoin is said to be pseudonymous which means that one can see your transactions or the balance but they can't know who is actually behind that wallet and that is enough privacy in my opinion. No one will ever know that a certain wallet is yours unless you have given your address to someone yourself and told them that it's your wallet address.

With only a public address, nobody can identify who owns that address if you don't let others know you are the owner.

If you use a throw away account to post that address and if you don't let any possible trace to your identity from that account, you are anonymous owner of that Bitcoin public address.

Like Satoshi Nakamoto's identity is still unknown after many years and we only know about public addresses posted by Satoshi Nakamoto. The public address can not help you to be anonymous if you have other bad practices with your coins and addresses.

[Zlantann]

The government will never allow Bitcoin to rule above their currency. Otherwise, they will lose control of the financial ecosystem. That's the main reason why the government doesn't want to adapt Bitcoin. It's true that even a lot of countries don't know Bitcoin very well. But those who are well aware of Bitcoin are worried about the decentralised power of Bitcoin. But I think Bitcoin should be usable for everyone. Because even the government wants to ban it officially, but they can't prevent people from using it.

I have heard arguments from some government officials that for them to enforce economic policies it is important for them to control the the financial system. The want to know how much is circulating in the economy. But this not true because huge funds are still smuggled into the country everyday and they cannot control its circulation. People should be allowed to make their financial choices.

Aside from that, many scam companies make use of crypto to scam their investors and the government saw it and wanted to prevent it from happening by banning cryptocurrency

Many scammers also make use of cryptography, computers, the Internet etc., but you don't ban those. So, cryptocurrencarly not the fault here. It's the scammers.

The assumption that the government is banning or restricting cryptocurrencies because they could be used for criminal activities is a cover-up of the main intentions of these authorities. After all with the recent development of new technology tools the government has been able to track and recover stolen or scammed cryptocurrencies They are just scared of losing control of the financial transactions of some people. They should focus on the problems and stop pursuing shadows.