Which Countries Has Banned Cryptocurrency?

Several countries have banned the use as well as the trading of cryptocurrencies. 

Each country has its reason behind the ban on cryptocurrencies. Although, almost all of these countries have good economical power and are developed. 

Countries That Has Banned Cryptocurrency

1. UAE

Cryptocurrencies are banned in the United Arab Emirates under article D.7.3 of the Regulatory Framework for Stores Values and Electronic systems. This was issued by the Central Bank in January of 2017, which prohibits the transaction of cryptocurrencies. 

Dubai Good Trader Regal RA DCC is the first company to exchange cryptocurrencies. Recently, in December 2020, the Securities and Commodities authority published a new legal rule which allows the issuance, listing, and trading of cryptocurrencies within the UAE. 

It doesn't mean that trading of cryptocurrencies in the UAE is now free out of any prohibition. There are some rules to be kept in mind while trading cryptocurrencies. Although the only legal offer of money in the UAE is the UAE Dirham. 

2. Nepal

Cryptocurrencies are absolutely banned in Nepal. 

Nepal Rastra Bank has prohibited the trading of cryptocurrencies because they cannot put forward their laws and regulations on them. You can view any wallet sites, mining sites and all types of cryptocurrencies related websites but you cannot trade them. 

News of 2017 claimed that 7 people were arrested in Nepal due to their running bitcoin exchange business. It was the first and the last incident of cryptocurrency-related matter in Nepal till now. 

3. China 

Although the use of cryptocurrencies isn't completely banned as in Nepal, the financial, as well as banking institutions, don't allow the transaction of cryptocurrencies. 

The commercial banking institutes and payment companies take down bitcoin trading accounts within two weeks of the order from the senior authority.  In 2018, roughly 170 trading and exchanging sites were closed down. 

Several mining sites were taken down in 2018. You can still have cryptocurrencies such as bitcoin and ether with you in China, but you cannot legally convert them into Chinese fiat currency. 

4. Morocco 

Morocco is a country where roughly 30% of the adults have access to bank accounts, which is quite low in comparison to Middle East countries and North African countries. 

The authorities of Morocco have termed cryptocurrencies or any virtual currency as illegal. In November of 2017, the authorities said to the general public that the transaction via cryptocurrencies is a violation of Exchange Guidelines and is blameworthy to penalties and fines. 

5. Qatar

Qatar is the richest country in the world. The trading and issuance of cryptocurrencies are not completely prohibited but there are some bans issued by the legal banking system. 

No bank can trade bitcoin in Qatar as per the QFC (Qatar Financial Centre) authority. 

Some centralized exchange and peer-to-peer exchange platforms can be used for the trading of cryptocurrencies (Coinmama and Localbitcoin). 

What is cryptocurrency? 

Cryptocurrency is an internet-based currency that can be used to buy or sell goods and services. 

Cryptocurrencies work on a cabinet-like system known as the blockchain. Blockchain is a decentralized system that is completely free from human calculations and all the calculations, as well as transactions, are carried by blockchain. 

Can cryptocurrency make you fortunate? 

Cryptocurrency can make you fortunate. Cryptocurrency has turned several rags to riches. But it takes proper research and serious analysis as well as cryptocurrencies are quite volatile. 

You can certainly make a good profit by buying and holding till the price rises.

What's the significant difference between cryptocurrency and fiat currency?

Cryptocurrency is not regulated by any central authority while fiat currencies are regulated and issued by the central government of a country.