Countries Where the Cryptocurrencies Are Banned: Busted for Bitcoin
CryptoBit News Today2 min read
A number of countries around the world have doubled down on their bans on cryptocurrencies in the past year, as they crack down on growing crypto-related criminal activity. ## The Bans in Action
Last month, Indonesia's Financial Services Authority issued new rules that would effectively ban the trading and use of cryptocurrencies within the country. This move came after the largest crypto exchange in the country was involved in a fraud scheme that bilked investors out of large sums of money.
The month before, the Bank of Thailand announced a new policy that brought their crypto stance in line with countries like China and North Korea. They banned the use of digital currencies as payment and also ceased giving licenses to crypto trading platforms. Officials cited concern over the potential for the unregulated market to lead to scams and money laundering.
Earlier this year, Egypt's central bank also banned the use and trading of cryptocurrencies, including Bitcoin and Ethereum. The bank had not given any licenses to crypto exchanges in the country, but had previously been quiet on the issue while allowing citizens to trade on foreign exchanges. ## What's the Reasons?
The reasons these countries have started to outright ban crypto vary. In Indonesia, the move is a reaction to a well-publicized fraud scam. In Thailand, officials have expressed concerns about the risks of the mostly unregulated currency. And in Egypt, the government sees the currency as a rival to their own and fears that it could destabilize the economy. ## What's the Reaction?
The crypto community has been mostly quiet in response to the recent bans, likely because they represent a small percentage of the total volume of crypto trades around the world. However, some proponents have criticized the bans as heavy-handed and have pointed out that the countries appear to not have a concrete plan to deal with the large volume of activity happening on the decentralized money. In general, the countries that have banned crypto activity have been working to give more oversight of the currency. ## What's Next?
Without a comprehensive plan, it seems unlikely that these countries will be able to effectively ban the use of cryptocurrencies within their borders. A law can make it illegal, but with Bitcoin and other currencies are kept in digital wallets, they're difficult to track and to seize. And a real world ban of crypto will be difficult to enforce as citizens continue to participate in the growing crypto market.
