Why Governments Ban Cryptocurrency {Bitcoin}

[taufik123]

First time my country have bad viewed with bitcoin transaction and many my citizen bad opinion with bitcoin such as not more valuable in the future until claimed as gambling kinds of bitcoin.

A type of Bitcoin gambling, that's what I often hear.
When I was in the crypto space there were many negative responses given to bitcoin or crypto in my place.
Even Bitcoin was seen as a toy currency that was no more valuable than Fiat money.

But that assumption has now started to lead to an interest in crypto and Bitcoin, and how such digital coins can make a lot of money.

But after huge transaction in daily day, my government have good viewed with bitcoin and get bigger opportunity to earn more taxes with huge bitcoin transaction in daily day. Have been two years with my country Indonesian adopted taxes for all cryptocurrency transaction when selling or buying in local exchange decentralized, we have to pay taxes not matter your position profit or loss during trade on local exchange must pay taxes.

For the future have good viewed with bitcoin in my country, first have bad mindset and right now bitcoin huge profitable with taxes income for government and they can earn much income when huge transaction in our local decentralize exchange.

Governments in our country are now fully aware of how big the transactions are in crypto and are trying to provide proper regulation.
It is also because they want to benefit from the transactions made by imposing trade tax rules for crypto.

But at least there is recognition of cryptocurrencies and the government is facilitating for crypto users.
We should only use it as a commodity asset and should not be used as a means of payment other than rupiah.

A government that has an open mind will not completely ban technology that will have a big impact in the future.
This should be utilized and used as a stepping stone to gain more benefits and support the progress of a country.

[HelliumZ]

Governments of many countries have declared Bitcoin illegal and completely stopped all financial transactions and bank transactions on it. There are also many countries that are newly declaring Bitcoin as a legalized currency. Countries that have outlawed Bitcoin are mainly afraid of decentralized Bitcoin because decentralized currency cannot be controlled by governments and banks. Since Bitcoin is a decentralized currency, the government cannot control it. Moreover, banks do not want to accept Bitcoin transactions because Bitcoin does not depend on any third party. Moreover, the government is completely opposed to Bitcoin due to a fear of such a decline in the popularity of banks.

[fuguebtc]

There are many reasons why a country bans Bitcoin, and most countries don't want to bring these reasons to the public. Some governments think that if Bitcoin is allowed in their country, they will not be able to control their country's economy, while some countries' governments think that if Bitcoin is allowed in their country, people will deposit their money through Bitcoin instead of keeping money in banks, which will result in their country's money going out , while some countries may ban bitcoins in the country considering their country's education rate. For example you mentioned China and Russia here, I know you all have very good economic condition of China and Russia, why they are not allowing Bitcoin in their country despite having good economic condition, there may be some reason behind it. Maybe they don't want another currency to rule their country. 
Different countries generally play different roles in banning Bitcoin.

To me, the government doesn't have too many reasons to ban bitcoin, they only have one reason, which is that it is decentralized. The decentralized nature of bitcoin is the only factor that makes it impossible for governments to be friendly towards it as it would destroy a host of government regulations and rules put in place to control us. But they never revealed that reason to the public and also gave hundreds of other silly reasons.

But government resistance to bitcoin is also gradually failing because they cannot stop people from using it and its adoption is gradually happening faster than in previous years.

I agree with your point, actually the government doesn't have too many reasons to ban bitcoin, the only reason is its decentralized nature and that makes them unable to control it. Besides that reason, I don't see any more reasonable reason like bitcoin related to crime, fraudulent activities...Let's not forget that crime and fraud predate bitcoin by hundreds of years so those reasons are really silly and stupid to me. They do not dare to admit that they have failed to control bitcoin, so they find every reason to hide that failure.

[Finestream]

In addition, the governments ban crypto specifically bitcoin because they don’t see it as a real currency, but a tool for committing fraud and scams for criminal people. Their minds are closed to that certain way of thinking no matter how crypto analysts will educate them. And because of that, almost all the governments are against to the innovation brought by bitcoin.

However, we all know that even if the government bans bitcoin, people will still find ways to access bitcoin. The fact that bitcoin remains a decentralized currency, then regardless if the government will legalized or ban bitcoin, still they can never control or traced all our bitcoin transactions.

[Natsuu]

In addition, the governments ban crypto specifically bitcoin because they don’t see it as a real currency, but a tool for committing fraud and scams for criminal people. Their minds are closed to that certain way of thinking no matter how crypto analysts will educate them. And because of that, almost all the governments are against to the innovation brought by bitcoin.

However, we all know that even if the government bans bitcoin, people will still find ways to access bitcoin. The fact that bitcoin remains a decentralized currency, then regardless if the government will legalized or ban bitcoin, still they can never control or traced all our bitcoin transactions.

Oh, you're totally right! It's a bit frustrating how the government views crypto. But people are resourceful. No matter what the officials say, people always find a way to get what they want. In our country, the government's stance on crypto, particularly Bitcoin, is quite skeptical. They see it as a tool for fraud and illegal activities however, the unique thing about Bitcoin is its decentralized nature. Unlike traditional currencies, it's not controlled by any government or financial institution and people can still engage in Bitcoin transactions even if the government tries to go against it.

[Ayers]

In addition, the governments ban crypto specifically bitcoin because they don’t see it as a real currency, but a tool for committing fraud and scams for criminal people. Their minds are closed to that certain way of thinking no matter how crypto analysts will educate them. And because of that, almost all the governments are against to the innovation brought by bitcoin.

I don't think that's their reason and they know what the real reason is, so even when crypto experts explain, they ignore it. If you are them, try to think: did crime come first or did bitcoin come first? And before bitcoin was born, what did criminals use for their crimes?
I don't think governments are stupid enough to not know those basics.

However, we all know that even if the government bans bitcoin, people will still find ways to access bitcoin. The fact that bitcoin remains a decentralized currency, then regardless if the government will legalized or ban bitcoin, still they can never control or traced all our bitcoin transactions.

This is exactly why governments dislike and ban bitcoin, because they cannot control and monitor us if we use bitcoin. But you're right, even if they issue a ban, it won't stop people from using bitcoin and its growth.

[Blitzboy]

First time my country have bad viewed with bitcoin transaction and many my citizen bad opinion with bitcoin such as not more valuable in the future until claimed as gambling kinds of bitcoin. But after huge transaction in daily day, my government have good viewed with bitcoin and get bigger opportunity to earn more taxes with huge bitcoin transaction in daily day. Have been two years with my country Indonesian adopted taxes for all cryptocurrency transaction when selling or buying in local exchange decentralized, we have to pay taxes not matter your position profit or loss during trade on local exchange must pay taxes.

For the future have good viewed with bitcoin in my country, first have bad mindset and right now bitcoin huge profitable with taxes income for government and they can earn much income when huge transaction in our local decentralize exchange.

Many governments, including Indonesia, change their minds quickly about Bitcoin and other cryptocurrencies when they realise they could bring in a lot of tax money. Initially, they avoid it, label it as gambling, and spread bad stories about it. Although, when they see a chance to make money, they change their tune, right? Allow us to now talk about how people act. With government views swaying the people, they get stuck in a mental tug-of-war. People are first told it's bad, but then it's suddenly seen as the next best thing because the government is making money off of it. What happened to consistency?

But now that the Indonesian government has demonised Bitcoin, they see how profitable it is and start taxing every transaction, whether the buyer or seller makes money or loses money. In what way does that treat the people fairly? It's good that they're looking to the future of banking, but the change seems like a wasted chance. For people to be able to handle this new financial world, they need to be given clear information and maybe even rewards.

[Learn Bitcoin]

I don't think that's their reason and they know what the real reason is, so even when crypto experts explain, they ignore it. If you are them, try to think: did crime come first or did bitcoin come first? And before bitcoin was born, what did criminals use for their crimes?
I don't think governments are stupid enough to not know those basics.

You won't be able to convince them with this kind of explanation. Bangladeshi ministers use these things as an excuse. No matter what, what was born first. They think criminal activity will increase if they legalize Bitcoin here. Yes, they are stupid enough to give these excuses. They think Bitcoiners are criminals and only use Bitcoin to pay for their crimes.

Another reason is that the government always wants to control your money. They want tax from your every transaction. If they legalize Bitcoin and you start paying using Bitcoin, they won't know these things. They won't be able to control you.

[Minecache]

Maybe the president and politicians won't know about bitcoin because they have thousands of things to worry about but they have not just one but thousands of consultants and experts in every field working for them. It would be naive to assume they would introduce bans or regulations without knowing anything about bitcoin. I bet the government understands bitcoin better than you and I, let alone the fact that they don't understand how bitcoin works. If they were more stupid than us, they wouldn't be able to lead us.

I don't know about other countries. But I know about my country. The government doesn't know anything good about Bitcoin. They have experts in every field, and those experts use Bitcoin secretly. LOL. They think Bitcoin users are criminals. Only criminals use Bitcoin to pay for their crimes. Some ministers have good knowledge of Bitcoin. For example, the Bangladeshi IT minister knows about Bitcoin, and he always supports it. But others do not agree with him because others don't understand how it works and why it's good. Some government Anal-yst say Bitcoin will open the door to money laundering. They sounds like money laundering is not happening without Bitcoin.

Do you serve your government or work in government agencies? How can you know that they know nothing about bitcoin? We know where bitcoin comes from and they will also easily know bitcoin from the sources where we learn about it, knowledge about bitcoin is everywhere and it is not too difficult to find it. Furthermore, if they know nothing about it, how can they know it is harmful or widely used by criminals? That proves that your government also knows very well about bitcoin, but because they do not want to accept an asset, a currency that is not created and controlled by them. So they will give every reason to ban it.

[komisariatku]

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Regulating the economy and monetary policy is not something simple, in many cases the state sometimes needs to intervene so that money, goods and people's needs are balanced, if something is unbalanced it will have market consequences. So there are many things that need to be thought about and considered before a country dares to take a policy of legalizing bitcoin for payments.

This is something not everyone understands, and many people think that regulating the economy is very simple, and that is why many people always complain about the government. It wouldn't be a problem if bitcoin were only legal as a commodity and strictly regulated, but if it became a currency, destroying a country's economy wouldn't be so difficult. The economy needs to be closely monitored and regulated and to do that, the government needs a tool to do that and that is fiat, which they can intervene in at any time to balance economy. There are actually a lot of things to consider and handle before accepting bitcoin as currency, which is not easy for the government.

Of course, the government needs to consider many things if it wants to implement Bitcoin as a payment currency because there will be many possible consequences. Until now I still like it if my country's government legalizes bitcoin as an asset and prohibits us from using bitcoin as a payment currency except for trading in the bitcoin/crypto market

The main problem that the country may consider is that the value of bitcoin is very volatile so it has a high risk if used as a payment currency. Imagine if I am a wood trader then I sell my wood for 1btc, I save 1btc for shopping next month but it turns out the price of bitcoin has fallen 30% so I can't buy any more wood because my capital has lost value by 30%

[Plaguedeath]

Do you serve your government or work in government agencies? How can you know that they know nothing about bitcoin? We know where bitcoin comes from and they will also easily know bitcoin from the sources where we learn about it, knowledge about bitcoin is everywhere and it is not too difficult to find it. Furthermore, if they know nothing about it, how can they know it is harmful or widely used by criminals? That proves that your government also knows very well about bitcoin, but because they do not want to accept an asset, a currency that is not created and controlled by them. So they will give every reason to ban it.

What he meant you can't just understand Bitcoin on the surface only without critical thinking and deep learning.

If you think Bitcoin is harmful or widely used by criminals, what's the difference with banks which can be used for money laundering?, why not ban fiat and shutdown banks?

If someone really understand about Bitcoin, you wouldn't think it's a dirty money, illegal money or related with bad activity.

[0t3p0t]

Governments ban Bitcoin due to concerns about its impact on the financial system, potential for illegal activities, loss of tax revenue, and volatility. However, enforcing such bans is often difficult and can have unintended consequences. As Bitcoin continues to gain popularity and support from individuals and businesses, it remains to be seen how governments will navigate the challenges and opportunities presented by this emerging digital currency.

This topic might be redundant but reasons may vary depending on countries implementing strict regulations to cryptocurrency specifically Bitcoin. We all know that there will always be pro's and con's regarding this issue but it is still up to us on how we are going to deal with cryptocurrencies even though things go against the tides.

[sokani]

<snip>

Bitcoin is arguably the best form of money because it's decentralized and not controlled by any centralized authority. This is the reason it is branded illegal because it's a threat to fiat. The government is constantly sponsoring propaganda against bitcoin, feeding people all sorts of lies hoping that it would cripple it grow but bitcoin keeps soaring higher. We've heard lies like bitcoin is the currency used by bad actors, but the US dollars is still the most laundered currency in the world. As if that's not enough, the government are now coming up their own CBDCs, but the truth is they cannot stop bitcoin.

[Lorence.xD]

In addition, the governments ban crypto specifically bitcoin because they don’t see it as a real currency, but a tool for committing fraud and scams for criminal people. Their minds are closed to that certain way of thinking no matter how crypto analysts will educate them. And because of that, almost all the governments are against to the innovation brought by bitcoin.

However, we all know that even if the government bans bitcoin, people will still find ways to access bitcoin. The fact that bitcoin remains a decentralized currency, then regardless if the government will legalized or ban bitcoin, still they can never control or traced all our bitcoin transactions.

I think that's not the only reason, but it's also a factor why some countries wouldn't acknowledged Bitcoin since criminals could use it in any illegal activities such as transferring money, of course government can't access the information since Bitcoin is decentralized. We all know that government is smart, as they have the capability to adapt and learn such thing like crypto, imagine they are running for a long time, so a simple technology that even an average person could understand wouldn't they interpret?

This issue of government banning crypto (Bitcoin) really depends on the country, especially countries that are relying on their own currency, cause it could be consider as threat that might affect the economy. Plus they couldn't control it as well which they can't put taxation for them to benefit.

[Nheer]

Former European central bank President once said bitcoin is not real, he also said he is against bitcoin, so many people saying there own opinion towards bitcoin.

I know not everyone will believe in bitcoin but this is exactly what I expect from such people and if i was in in his i will also be against bitcoin something that will make my company become irrelevant. They are pained about the creation of bitcoin and because of its features which are against the regulations of the government, they are worried that one day it may become more relevant to people than their fiat so they are trying to do everything in their power just to condemn bitcoin.

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

Exactly, Bitcoin’s features makes it more suitable for people than their currency and also has so many advantages over fiat that’s why they are afraid of it. Bitcoin is so powerful that it can render fiat currencies useless that’s why most countries doesn’t want to legalize the use of bitcoin. The Government already knows alot about bitcoin so they are doing all they can not to make any mistakes to let bitcoin takeover.

• knowing that bitcoin is a decentralize currency, the government cannot control and monitor your funds.

This is the major reason why the government is scared of bitcoin, people have suffered so much in the hands of the government they come up new regulations every now and then which is always in their favor neglecting the effects it will have on the people. People lack freedom over their own hard earned money and they even monitor the way people spend their money which in my opinion is bad.

Kudos to Satoshi for thinking of a way to solve this issue people face regarding their own money. Decentralization have done it all with bitcoin we now have total control of our money

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.

I don’t think that’s their first thought, they are only their own personal gains and if you say preventing people from scam is their reason for going against bitcoin then i would disagree with you because scam have been in existence long before bitcoin bitcoin was invented. Read here when the first case of scam was recorded so why don’t they focus on preventing fiat scams that have been in existence for long.

[humanvelocity]

Well to be very honest why would any government not ban cryptocurrency? They all are aware that cryptocurrency can’t be regulated and will be helped to fund shady organisations across the oceans. Although the government themselves might be using the same currency for their own shady transactions.

[Zoomic]

Former European central bank President once said bitcoin is not real, he also said he is against bitcoin,

During the early days of bitcoin, many people held so many negative options about bitcoin. Some said;

• It is a bubble that will burst soon 
• It is a Ponzi scheme
• It is a scam
• It cannot be a currency because only government issues a currency 

And many more things. I do not actually blame them because bitcoin was completely new and strange, but if people still hold same believe about bitcoin today, I will say that they are wrong and somewhat gullible.

[Ever-young]

So far, they are all losing, and if things keep going like this, governments around the world will have to become friendly with Bitcoin sooner or later, with the way things are looking right now, I think for the first time in history, Bitcoin will defeat them all, and bring them closer too.

I believe most government are already doing that but it’s hard for them to come out to the open and publicly embrace it, I don’t see much of a direct attack from many government now are days what I have been seeing is government and it’s regulatory authority attacking altcoins and large crypto firms like big exchanges this is as a result of them figuring the market manipulation that those exchange are doing and the kind of fee they are taking which the government are just after their tax and other licenses fee payable.

Looking at things now even the high energy they claim bitcoin was consuming and was causing a damage to climate has also been less of a topic now are days as it’s make use of more less energy and has no negative effect to any climate, with time we will see many government publicly adding bitcoin as part of the general accepted currency for local payment.

[Wend]

So far, they are all losing, and if things keep going like this, governments around the world will have to become friendly with Bitcoin sooner or later, with the way things are looking right now, I think for the first time in history, Bitcoin will defeat them all, and bring them closer too.

I believe most government are already doing that but it’s hard for them to come out to the open and publicly embrace it, I don’t see much of a direct attack from many government now are days what I have been seeing is government and it’s regulatory authority attacking altcoins and large crypto firms like big exchanges this is as a result of them figuring the market manipulation that those exchange are doing and the kind of fee they are taking which the government are just after their tax and other licenses fee payable.

Looking at things now even the high energy they claim bitcoin was consuming and was causing a damage to climate has also been less of a topic now are days as it’s make use of more less energy and has no negative effect to any climate, with time we will see many government publicly adding bitcoin as part of the general accepted currency for local payment.

They don't attack bitcoin and they attack altcoins and centralized exchanges because there is no point in attacking bitcoin because there is no one in charge, bitcoin is decentralized. Meanwhile, altcoins and CEX are centralized by leaders and operators so litigation and sanctions will be easier.

As for the issue of bitcoin consuming a lot of energy and polluting the environment, that is just an excuse for them to smear bitcoin. But eventually they realized that no matter what they said about bitcoin, people wouldn't stop using it, so they kept quiet and silently accepted bitcoin. I also believe that in the near future all governments will accept bitcoin, bitcoin will be popular all over the world.

[Suzume]

Government ban cryptocurrency in our country beacose they know what happened in inside our country. The main reason or ban crypto money laundering. I belong from Bangladesh and you all know what is the financial issue of Bangladesh and what happening in this country. If cryptocurrency legal in Bangladesh then the money launderar will use the source for laundering. That's the main reason of ban cryptocurrency ban in our country...


There are many countries in the world where crypto is not legalized at all.  This is a stupid act. Our country is no different.  In our country too ,if caught by the administration regarding illegal crypto transactions, it is charged as a heinous crime like money laundering.  Those who are associated with the crypto market are basically acting like thieves because there is no sympathy for our country's legitimacy.  Because they know that they can be punished if they are caught by the administration.  For this reason, those who know from the family what kind of punishment can be if they are caught from being connected with the crypto market.  Because of this, they get away from work causing many family problems.  But who will convince them that crypto can bring a bright future.  There are many countries in the world that have complete legitimacy on crypto and there are many from those countries who are successfully making a living from crypto.  Our country's crypto legalization is a dream of lakhs of money.