Bitcoin, the world’s first and most popular cryptocurrency, has been banned in many countries.
While these bans vary from country to country, they generally fall into one of two categories: either the government views Bitcoin as a threat to its existing monetary system, or it is concerned about money laundering and other criminal activities associated with the cryptocurrency. Learn with bitcoin-buyer.
Bolivian Outright Ban
In some cases, such as in China and Bolivia, the government has outright banned the use of Bitcoin. In other cases, like Russia, the government has not yet taken a definitive stance on the legality of Bitcoin but has announced plans to do so shortly. And in still other countries, like the United States, the government has not yet taken a position on Bitcoin. Still, it has issued guidance that suggests it may be subject to regulation as a financial asset.
The solution to the problem of the Bitcoin ban in a few countries is still being debated and worked out. Some believe that the only way to get around the bans is through decentralised exchanges, while others believe compliance with existing regulations is the key. There is no easy answer, and how will ultimately resolve this issue remains to be seen. In the meantime, Bitcoin continues to be a popular and controversial topic of discussion worldwide.
Why Is Bitcoin Banned In Certain Countries-and? How To Circumnavigate The Ban?
Some countries have outright banned bitcoin and other cryptocurrencies, while others have taken a more cautious approach, imposing strict regulations on their use. Here we look at some countries that have banned bitcoin and explain how users in these countries can still access the cryptocurrency.
China
China has had a tumultuous relationship with bitcoin and other cryptocurrencies. However, this ban did not end bitcoin and cryptocurrency trading in China. Instead, it drove trading underground, with many Chinese bitcoin users turning to over-the-counter (OTC) exchanges or LocalBitcoins.
Russia
Russia has also taken a hard line on cryptocurrencies. In February 2018, the country’s central bank announced that it would ban cryptocurrency payments, and earlier this year, the Russian government said it was considering outlawing cryptocurrency trading altogether. However, the Russian ban has not been entirely effective like in China. Russians still use several ways to trade cryptocurrencies, including OTC exchanges and LocalBitcoins.
India
India has also taken a tough stance on bitcoin and cryptocurrencies. However, this ban has not stopped Indians from trading cryptocurrencies. There are still several ways for people in India to buy and sell bitcoin, including through OTC exchanges and LocalBitcoins.
Bangladesh
Bangladesh is another country where bitcoin is effectively banned. The Bangladeshi government has issued several warnings against using cryptocurrencies, and in February 2018, the central bank announced that it would not allow any transactions in cryptocurrencies.
However, this ban has not stopped Bangladeshis from trading cryptocurrencies. There are still several ways for people in Bangladesh to buy and sell bitcoin, including through OTC exchanges and LocalBitcoins.
Indonesia
Indonesia is another country where bitcoin and other cryptocurrencies are effectively banned. In January 2018, the Indonesian central bank announced that it would ban using cryptocurrencies as a form of payment.
However, this ban has not stopped Indonesians from trading cryptocurrencies. There are still several ways for people in Indonesia to buy and sell bitcoin, including through OTC exchanges and LocalBitcoins.
Nepal
Nepal is another country where bitcoin and other cryptocurrencies are effectively banned. However, this ban has not stopped Nepalese from trading cryptocurrencies. There are still several ways for people in Nepal to buy and sell bitcoin, including through OTC exchanges and LocalBitcoins.
Bolivia
Bolivia is another country where the use of bitcoin and other cryptocurrencies is effectively banned. In June 2014, the Bolivian central bank declared that cryptocurrencies are illegal.
However, this ban has not stopped Bolivians from trading cryptocurrencies. For example, there are still several ways for people in Bolivia to buy and sell bitcoin, including through OTC exchanges and LocalBitcoins.
Final words
Bitcoin is banned in a handful of countries worldwide, including China and Russia.
Nevertheless, with a little effort, it is possible to continue using Bitcoin even in countries where it is currently banned. However, Bitcoin users in banned countries should keep their activities private and avoid using the currency for illegal purposes.