Bitcoin is reshaping the financial sector of the world. Big brands like Tesla are now accepting Bitcoins as payment to sell their cars. However, there are still countries where this cryptocurrency is still illegal. Despite the popularity and immersive use, several countries are forbidding it.
Another amazing breakthrough is the acceptance of Bitcoin as an asset from the Bank of America. Such events show the huge impact of cryptocurrencies on the economics of our world. We are likely to shift towards digital currencies. So why are some countries still resisting it? There are several reasons behind this.
Some countries are worried because of safety concerns. According to them, digital currency is not safe yet. Despite the huge breakthrough over the past years, bitcoin is still volatile and so does its value. Moreover, it involves some risk factors when you go into trading. You can read more at.
Here is a list of countries where bitcoin is still illegal.
The “Journal Officiel” of Algeria still regards Bitcoin as illegal. According to article 117, purchasing, holding, selling and using Bitcoin and every other virtual currency is illegal. Therefore, if you are a resident of Algeria, you are not capable of using any digital currency.
And this is according to the law of the land. That is why, if someone breaches the law or violates the regulations, he will get the punishment.
The religious legislative authority of Egypt is “Dar al-Ifta”. And according to this primary Islamic legislator, Bitcoin trading is considered illegal under religious terms. Therefore, Egyptians are prohibited from any sort of trading that involves digital currencies.
Thus, the person who is found to be involved in this work is liable to get punishment. And the punishment will be according to the state rules and law.
Before November 2017, there was not anything specific for virtual currencies. However, on 20th November 2017, the exchange office of Morocco stated that all the transactions done through virtual currencies are illegal. Therefore, if anyone is found to be doing against the land orders, he/ she will be liable to legal penalties. This also includes different fines that the offender has to pay.
Furthermore, the very next day, some monetary authorities informed people about the risks that are associated with these currencies. According to the ministry of Economy and Finance, Bitcoins can be used for illegal activities like money laundering and for the financing of terror activities. They informed their citizens about the dangers of using these currencies.
In addition to this, on the 19th of December 2017, the governor of Bank Al-Maghrib declared Bitcoin as a “financial asset” and not a currency. Furthermore, he also put focus on the dangers of using it. He also asked the authorities to design a proper framework so that they can ensure consumer protection.
Therefore, if you are thinking that the ban will be removed anytime soon, you might be wrong. Because they are quite stubborn on this account.
The situation of Nigeria is a bit different from the previous countries. On the 17th of January 2017, the Central Bank of Nigeria banned all the virtual currencies and passed this circular in all the banks of the country. Thus, Bitcoin and all the other cryptocurrencies became illegal there.
However, later on, they created a committee for redesigning the legal regulations of digital currencies. They wanted to look for a possibility to allow blockchain to some extent. They want their country to slowly adapt to cryptocurrency.
But on the 5th of Feb 2021, the Central Bank again issues a statement saying that any sort of dealing in cryptocurrency is prohibited. And if you are found to be doing it, you are liable to stiff penalties. So if you are living in Nigeria, beware of the fact that you are not allowed to do this trading. Or you have to shift somewhere else.
The use, purchase, and any sort of trading through any cryptocurrency are completely banned in Nigeria since 2014. The put ban on all the currencies that do not come under the regulations of the economic zone or Bolivia.
Therefore, if the country or the economic zone does not regulate any currency, it automatically becomes illegal. However, there is not much information about the penalties and punishments.
According to the official statements, this is done to protect the citizens from any sort of financial fraud. That is why they are also not going to put away the ban in the near future.
According to the Government of Nepal, there is an absolute ban on Bitcoins and other cryptocurrencies. This became official on the 13th of Aug 2017 after the Rastra Bank of Nepal declared it illegal. However, there is nothing official about the fines and penalties. Therefore, the offender will get his/her punishment according to the state laws.
To sum up
Bitcoins started in Japan and gained so much popularity that almost everyone in the world knows about them. During the initial years, it was not well-known. However, it gained popularity when its value started increasing. In the beginning only stakeholders, entrepreneurs, and businessmen used to buy it, but the trend changed around a decade ago, as stated by bitcoinscircuit.
Developed and mostly the European countries started adopting the digital currencies. It all began from trading. However, because of the increasing interest of the general public, it is becoming more common. Both offline and online sellers allow payment through digital currencies. Likewise, you can now purchase or sell things and do transactions through Bitcoins.
Despite all this progress in the world, there are countries that are still refusing to accept it as a currency. This is mostly because of some religious and political issues. Therefore, there is still hope that these countries will also gradually accept Bitcoins. Because we are literally moving towards the digital world.