With recent cases of one of the largest crypto platform’s FTX crackdown due to its token’s liquidity crisis and G20 seriously considering banning cryptocurrency, the topic has never been hotter. The mentioned events brought about concerns and doubts about crypto market transparency and the ability to protect a user’s investment. Discussions are floating around digital money. While some advocate for the use, free purchase, and sale of crypto products, others see it as a threat in many ways.
First, restrictions have affected Bitcoin, resulting in limiting trading operations and Bitcoin possession. Some countries worry about digital money taking over conventional money, thus threatening national currencies. Yet, Bitcoin is not alone. Other cryptocurrencies have been banned as well in different parts of the world.
For instance, China banned all cryptocurrency transactions, claiming that crypto coins are ‘speculative assets’. These restrictions got even stricter after the stablecoin Terra Luna collapsed. At the same time, one of the biggest banks in the country, the People’s Bank of China, started its own electronic currency, which means it will be able to control transactions even better.
So, the question is: Are crypto coins feasible to be banned, and are restrictions effective? Let us delve into the matter and make conclusions.
Countries That Currently Prohibit Cryptocurrency
It is known that Bolivia, China, Colombia, Indonesia, Egypt, Turkey, Nepal, Ghana, and India banned almost all cryptocurrencies. Moreover, many from this list criminalize having, issuing, mining, trading, and sending coins. However, if you think that only countries of the third world are aggressively persecuting digital tokens, you’re not correct. For instance, North Macedonia officially banned crypto like Bitcoin, Ethereum, and some others.
At the same time, it is often possible to bypass limitations. It is proven by the presence of large crypto exchanges. For example, the digital currency exchange Bitsos in Mexico has more than 1 million active users, though crypto use and exchange is complicated there. To add, ironically, despite the ban, up to 5 % of the world’s BTC mining likewise happens in Iran, where it’s completely banned.
In Egypt and India, the ban is also linked to moral and religious grounds, with governments saying cryptocurrency can spoil new generations if placed into the wrong hands, or even including the ban to religious decrees.
Crypto-Friendly Countries That Still Limit Crypto
Examples of countries that don’t aim to ban cryptocurrency completely but limit its free evolvement include the United States, Hong Kong, Singapore, and many European countries.
In these places, legislation limiting the use of crypto has the nature of recommendations. That doesn’t look radical, except for the Securities and Exchange Commission activities. It sued large exchanges like Binance and Coinbase and made other major exchanges, Gemini and Bittrex, move to other places, stopping exchanges in the U.S.
On the other hand, the Securities and Futures Commission in Hong Kong, otherwise referred to as SFC, is going to control the trading of virtual assets and give licenses to cryptocurrency exchange platforms for users to be able to convert BTC to ETH, as well as hundreds of other pairs legally.
Wrap Up
Analyzing the situation with crypto bans worldwide, it seems like global political bodies are gradually becoming more aware of crypto’s power and threats it might carry. It is indeed alarming and disappointing for those engaged in the crypto industry and investors. Yet, it is clear that cryptocurrency can’t be banned completely.
Digital assets will likely continue thriving, perhaps, with changing the platforms. If you’re looking for where to exchange your virtual coins these days, consider LetsExchange. There is no registration needed, and nearly 3,500 coins are available for exchange at fixed or floating rates. The exchange also offers to convert crypto to fiat, like BTC to EUR, and back, with a chance to track each transaction and make the most of them.