Most Asian countries are lagging behind in legalizing the use of cryptocurrency

[vs2014]

Other regions in Asia cannot claim such progress and are looking at the emergence of crypto currency with fear. According to Nepal, Bangladesh and Kyrgyzstan, using or trading virtual currencies is highly illegal in Asian countries and there are strict penalties for it. If you search you will find that most people in all these countries are dreaming about crypto or Bitcoin.

So the governments of those countries are not thinking much about its legality but most of the people there have Bitcoin in their pockets. To me this is not the right decision of the government rather by declaring the use of crypto legal the government can continue to tax it if it wants. Again, it will create a good source of income for the people living there to make a living.

[cryptoaddictchie]

Im not sure about other Asian countries how strict they are but definitely theres a lag on our country (Philippines) when it comes to cryptocurrency regulations. Though it being monitored and improved theres still a lot of loop holes to fix and should be consider when it comes to a rules and regulations.

Honestly the progress is slow thats why it keep being late on some progress compared to Western countries that has good standing when it comes to web3 assets and some Laws tied to it.

[Dunamisx]

I think not only Asian continent are affected on this, but we can also look at how some countries have adopted bitcoin as a legal tender and also for the sake of those that are yet to do so, but at least allow for the use of Bitcoin in the country without strict ban, compared to the number of countries where bitcoin and cryptocurrency is completely banned, I want to believe you are still moving more better ahead than the challenges we have with other countries or continents that restricts for the use of Bitcoin.

[avp2306]

Other regions in Asia cannot claim such progress and are looking at the emergence of crypto currency with fear. According to Nepal, Bangladesh and Kyrgyzstan, using or trading virtual currencies is highly illegal in Asian countries and there are strict penalties for it. If you search you will find that most people in all these countries are dreaming about crypto or Bitcoin.

So the governments of those countries are not thinking much about its legality but most of the people there have Bitcoin in their pockets. To me this is not the right decision of the government rather by declaring the use of crypto legal the government can continue to tax it if it wants. Again, it will create a good source of income for the people living there to make a living.

We are dominated by old politicians which they already know those traditional financing, that's why its expected that they are skeptical on new technology introduce to them.

Also unfortunately some of their actions are been bound not only by their political but also with their business interest.

This is how important for people to choose young smart leaders now, because they are the one can easily adopt on the changes happening in the world. If people Asian or maybe other regions will elect those smart people with knowledge about crypto maybe we could see some good growth of adoption with this coins.

[TheUltraElite]

There is a 30% on capital gains on crypto in India, we dont like it but the government does and it is created to deter people from using crypto for trading. What can you say about them? Most of the people running the political show dont even understand what bitcoin is and how it functions.

Still I feel that in future things will change, governments will be forced to accept the use of crypto and have a nominal taxation on gains. Maybe we will see regulatory and taxation framework on top so that the government gets its share and people can transact on it easily.

[Catenaccio]

There is a 30% on capital gains on crypto in India, we dont like it but the government does and it is created to deter people from using crypto for trading. What can you say about them? Most of the people running the political show dont even understand what bitcoin is and how it functions.

Still I feel that in future things will change, governments will be forced to accept the use of crypto and have a nominal taxation on gains. Maybe we will see regulatory and taxation framework on top so that the government gets its share and people can transact on it easily.

Even they understand that, they will still focus mostly on their government and their benefits. Citizens are like at bottom of their priority list while surely charging as most as possible capital gain tax is one of easiest ways for getting money to government budget. What they will do with that is unknown or not completely transparent enough for their citizens to observe.

They can not ban Bitcoin so they will have to accept it, legalize it but at the same time in the future, they will enforce more tax on citizens especially activities related to Bitcoin and cryptocurrencies. It's normal, governments can enforce many Acts, laws, regulations including taxation on people in their nations.

[Bluedrem]

India, the second most populous country in the world, has legalized Bitcoin, and some other countries in Asia are also on the path to legalizing Bitcoin. Yes, my country is among the countries you mentioned where Bitcoin has not yet been legalized, but Bitcoin is widely used in my country. I think the government is aware of the issues and even government officials use it. There has been no major problem with the use of Bitcoin in my country so far, while Bitcoin has not yet been legalized in my country.

[akamit]

The ban in countries like Bangladesh and Nepal makes very little practical sense at this point.

People are using crypto anyway, peer to peer, through VPNs, through exchanges that don't ask too many questions. The governments know this. It's not like enforcement is actually stopping anyone who really wants in.

The tax argument the OP made is honestly the strongest one. If these governments legalized and taxed crypto transactions even at a modest rate, that's real revenue they're currently getting nothing from. Instead they'd rather keep a ban on paper that nobody is following.

We are dominated by old politicians which they already know those traditional financing, that's why its expected that they are skeptical on new technology introduce to them.

The old politician problem is real too. A lot of these decisions come from people who genuinely don't understand what they're banning and are just afraid of losing control over something they can't see or touch.

[rat03gopoh]

However, the law's enforcement in these countries is uneven, considering the number of successful operations ⁽¹⁾⁽²⁾. I think it's only in large cities or where transactions involve hundreds of thousands of dollars per year, where their banking transaction patterns are easily identifiable. Clearly, the barriers facing developing countries in some parts of Asia are limited technology and technical knowledge.

1) https://kathmandupost.com/national/2025/07/02/52-people-including-six-chinese-nationals-arrested-for-online-dating-scam-and-illegal-crypto-trade
2) https://www.tbsnews.net/bangladesh/crime/cryptocurrency-police-hunt-wallets-not-money-laundering-480522

[uneng]

We are dominated by old politicians which they already know those traditional financing, that's why its expected that they are skeptical on new technology introduce to them.

The old politician problem is real too. A lot of these decisions come from people who genuinely don't understand what they're banning and are just afraid of losing control over something they can't see or touch.

It's just a matter of time until these countries follow similar regulations the main countries of the region are implementing. All they can do is to delay the regulations, but they are inevitable.

Strict and rigid countries which aren't open to technology and changes are doomed to disappear or to be incorporated by others who are advancing. Even the methods of mass control are constantly evolving, so those who insist on the same means of controlling and watching the citizens never succeed.

[Lucius]

Other regions in Asia cannot claim such progress and are looking at the emergence of crypto currency with fear. According to Nepal, Bangladesh and Kyrgyzstan, using or trading virtual currencies is highly illegal in Asian countries and there are strict penalties for it. If you search you will find that most people in all these countries are dreaming about crypto or Bitcoin.

So the governments of those countries are not thinking much about its legality but most of the people there have Bitcoin in their pockets. To me this is not the right decision of the government rather by declaring the use of crypto legal the government can continue to tax it if it wants. Again, it will create a good source of income for the people living there to make a living.

In your post, there is what you describe as a problem, but also what that "problem" completely cancels, because in order for people to use Bitcoin and altcoins, they do not need the approval of their government, and it is even less logical that these people should be happy if they pay taxes because they own/trade with cryptocurrencies.

This legalization that you and many others want so badly for Bitcoin doesn't bring anything good. Bitcoin was created as an alternative to existing financial systems and it is not logical that so many people want to centralize it.

[Felicity_Tide]

~snip

So the governments of those countries are not thinking much about its legality but most of the people there have Bitcoin in their pockets. To me this is not the right decision of the government rather by declaring the use of crypto legal the government can continue to tax it if it wants.

I think sooner or later, these greedy government are going to legalize it, in exchange for regulation and taxing. Which government doesn't like to tax it's own people from the very little they've worked for?. I think it's obvious that government are always after things that benefits them, and it's surprising that these few countries in Asia that you mentioned, haven't seen enough convincing reasons, or perhaps, there are other political reasons that feels more beneficial to them than taxing.

[Donneski]

The reason behind what you called "Asia countries are lagging behind" is mostly as a result of how cautious theirs governments are. The authorities in Asian countries are too familiar with systems that allows them to fully control most of the activities of their citizens so it's not surprising that they're slow to embrace  something as decentralised as Bitcoin, their fear is that it'll most likely take over their financial system.

Just like some persons have said under this thread, the good thing is Asians are already using Bitcoin regardless of the unclear regulations of the government. In the future, regulation will have to catch up with reality because they can't resist Bitcoin adoption forever.

[3kpk3]

This isn't accurate at all. Based on my research, 35 out of 45 asian countries have legalized cryptocurrencies in various ways(Regulation using taxes etc). Remaining few have restricted or outright banned them with China being the worst offender here.

It's actually somewhat hilarious seeing a superpower like China trying and failing to ban different parts of the crypto ecosystem over the years in order to make Digital Yuan more popular.

[Cryptomultiplier]

I like the fact that only most Asian countries haven't adopted the use of Bitcoin and crypto currencies, but some others are doing so already while the citizens of even the countries yet to legalize it have some Bitcoin in their wallet.
It would be good to adopt Bitcoin in these countries but it depends on how the government perceives it and aims to get their revenue from it.
When more countries around the Asian continent adopt it, those who haven't would be forced to adopt it and tax it and regulate it as it is the case of legal adoption and that is the point to look out for with good policies made on its behalf.

[Smartprofit]

It's also important to remember that legalizing cryptocurrencies makes their existence meaningless... Why do we need legal cryptocurrencies at all? 🙋

Cryptocurrencies are essentially money. However, Asian (and other) countries already have government-issued money (fiat money). So what's the end result? After legalizing cryptocurrencies, they will simply become bad money. And no one will need them... Because legalizing cryptocurrencies is usually associated not only with taxation, but also with the introduction of KYC procedures, banning non-custodial wallets, banning anonymous and privacy coins (like Monero and ZCash), etc.

All over the world, cryptocurrencies are used in situations where fiat money cannot be used. Of course, the best option is for cryptocurrencies to be in a "gray" zone, not a "black" one. Because when someone is sent to prison for using or storing cryptocurrencies, that's really bad.🙅

[Nwada001]

Other regions in Asia cannot claim such progress and are looking at the emergence of crypto currency with fear. According to Nepal, Bangladesh and Kyrgyzstan, using or trading virtual currencies is highly illegal in Asian countries and there are strict penalties for it. If you search you will find that most people in all these countries are dreaming about crypto or Bitcoin.

It's only a few Asian countries and not the majority. As a member has corrected you here, they have legalized cryptocurrency. Some of them have clear and friendly guidelines and regulations, while some are still not too clear. Some of them allow you to trade it, but you are not allowed to use it and make payments, and to me, crypto itself doesn't need to be legalized.

Being legalized means it's fully regulated. All we need is for the government to allow the people to use it as they can and not punish anyone for using it. Crypto is supposed to be used without restriction and monitoring. What some people are practicing now have defied what crypto is fully supposed to be for.

[Zlantann]

Other regions in Asia cannot claim such progress and are looking at the emergence of crypto currency with fear. According to Nepal, Bangladesh and Kyrgyzstan, using or trading virtual currencies is highly illegal in Asian countries and there are strict penalties for it. If you search you will find that most people in all these countries are dreaming about crypto or Bitcoin.

So the governments of those countries are not thinking much about its legality but most of the people there have Bitcoin in their pockets. To me this is not the right decision of the government rather by declaring the use of crypto legal the government can continue to tax it if it wants. Again, it will create a good source of income for the people living there to make a living.

It is really sad that at this stage, while most developed countries are embracing crypto, some countries are still backward. The US and Europe are making robust laws to regulate the crypto industry in their jurisdictions. They want to closely supervise the industry and also earn tax.

Developing countries should be seeking diverse means to increase its inccome. And allowing the use of crypto would bring income and create jobs. Countries like Russia and Iran, that was hostile to the industry, are now flexible because of Bitcoin helps them to bypass sanctions. 

[Hazink]

Developing countries should be seeking diverse means to increase its inccome. And allowing the use of crypto would bring income and create jobs. Countries like Russia and Iran, that was hostile to the industry, are now flexible because of Bitcoin helps them to bypass sanctions. 

Maybe they don't have someone who is influential enough in the government who could submit bills and have people to back them up in other ways for them to pass read and be made law, but on the other hand, do we really need these countries to pass laws which will allow their people to trade and hold crypto just because it's a means for them to generate revenue through tax? If they are going to consider crypto only because an addiction means of generating revenue, don't you think the laws will be very strict, and they will tax their citizens too much in an unfair manner?

[EL MOHA]

Cryptocurrencies are essentially money. However, Asian (and other) countries already have government-issued money (fiat money). So what's the end result? After legalizing cryptocurrencies, they will simply become bad money. And no one will need them... Because legalizing cryptocurrencies is usually associated not only with taxation, but also with the introduction of KYC procedures, banning non-custodial wallets, banning anonymous and privacy coins (like Monero and ZCash), etc.

All over the world, cryptocurrencies are used in situations where fiat money cannot be used. Of course, the best option is for cryptocurrencies to be in a "gray" zone, not a "black" one. Because when someone is sent to prison for using or storing cryptocurrencies, that's really bad.🙅

I think this is the stance that some countries actually think, they are that if bitcoin or cryptocurrency is actually legalized that’s officially calling it a legal tender and at this moment some of the users of even their fiat currency will actually start preferring the use of cryptocurrency then their fiat currency and they actually worry it could affect the countries main currency and it’s one of the reason why they are doing everything to make sure that cryptocurrency doesn’t sees the light of the day.

I usually say cryptocurrency is not here to compete with just any other assets it’s just here to been an alternative currency or even asset to old or traditional currencies and yes I agree with you that it is seriously bad to say some is arrested due to the use of it, so it’s not about full legalization even less restrictions are better and doesn’t mean that fiat currency will be turn away.

Maybe they don't have someone who is influential enough in the government who could submit bills and have people to back them up in other ways for them to pass read and be made law, but on the other hand, do we really need these countries to pass laws which will allow their people to trade and hold crypto just because it's a means for them to generate revenue through tax? If they are going to consider crypto only because an addiction means of generating revenue, don't you think the laws will be very strict, and they will tax their citizens too much in an unfair manner?

The decision of this Middle East countries or rather to be specific the Arab countries are most influenced by their religion belief and they do not see bitcoin religiously as clean money and it’s the reason. All though most of them have beginning ti see beyond this, it’s one of their strong hold