Since its inception, cryptocurrency has been a contentious subject. Top economists have even referred to it as a “Ponzi scheme” because to its volatility and environmental impact. It has received a lot of criticism for these reasons. Nevertheless, other nations, like El Salvador, which designated Bitcoin legal tender in September 2021 and the Central African Republic this year in April, continue to believe in the decentralization potential of cryptocurrencies.
Depending on the country, cryptocurrencies may or may not be legal. Here is a list of the top nations that have legalized, outlawed, or deregulated cryptocurrencies (with some restrictions).
Algeria
Algeria passed a finance law in 2018 that outlaws any cryptocurrency transactions. Holding and exchanging digital assets are included in this. Any legal transgression constitutes an offense that carries a penalty.
Bolivia
Bolivia outlawed cryptocurrency in 2014. Instead of frauds and rug pull cases that cost investors a lot, the Bolivian Central Bank adopted a decree banning cryptocurrencies. The Bolivian government claims that investors should not put their trust in cryptocurrency.
China
In September 2021, China’s central bank declared all cryptocurrency-related transactions illegal and imposed a blanket ban, delivering the clearest statement yet of its intention to rein in the sector.
The People’s Bank of China stated on its website that all cryptocurrencies, including Bitcoin and Tether, are not legal tender and cannot be used to transact business. The PBOC declared in the statement that “any cryptocurrency-related transactions, including the services offered by offshore exchanges to domestic individuals, are criminal financial operations.
Cuba
The newest nation to authorize and control cryptocurrencies like Bitcoin is Cuba.
Egypt
According to Egypt, Bitcoin and other cryptocurrencies are against Islamic law. The country’s main Islamic advisory body, Dar al-Ifta, published a religious decree in 2018.
In September 2020, the nation 2020 revised banking regulations to forbid the trade and promotion of cryptocurrencies without a Central Bank license.
Union of Europe
The use of cryptos has neither been made legal nor unlawful by the European Union. As “crypto-assets,” it recognizes Bitcoin and other digital assets.
Legislators in the European Union (EU) are strengthening restrictions on the transfer of cryptocurrencies in light of the growing use of digital assets for money laundering. Reuters reports that the new proposal will require cryptocurrency businesses operating throughout the EU, including as exchanges, to gather, store, and submit information on any of their users involved in any transfers.
The ideas are intended to broaden the anti-money laundering regulation (AML), which is currently in place in the traditional payment environment. This would require cryptocurrency exchanges to notify the authorities of any transaction that is worth more than EUR 1,000 ($1100).
Indonesia
The central bank of Indonesia published new rules in 2018 that outlaw the use of cryptocurrencies, such as Bitcoin, as a form of payment.
Iran
The Central Bank of Iran (CBI) approved domestic banks and money changers to use locally mined cryptocurrencies and licensed ones to pay for imports into the sanctioned country in April 2021, although the cryptocurrency market is not regulated in Iran.
Cryptocurrency and the nation have a very ‘love-hate’ relationship. Following unanticipated power interruptions caused by large-scale crypto-mining operations conducted in the nation, Iran announced a four-month ban on the energy-intensive process of mining cryptocurrencies like Bitcoin.
Notably, Iran is home to 4.5% of the world’s Bitcoin miners, according to blockchain analytics company Elliptic.
India
The government has not yet presented the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. However, “it permits for limited exclusions to promote the underlying technology of cryptocurrency and its usage,” the document states.
Russia
Russian central bank suggested a ban on cryptocurrency use and mining in January 2022, citing risks to the country’s financial stability, residents’ welfare, and control over its monetary policy.
Governments from Asia to the United States are concerned that privately controlled and extremely volatile digital currencies could threaten their ability to maintain control over banking and monetary systems, which has led to a global assault on cryptocurrencies.
Russia has railed against cryptocurrencies for years, claiming they may be used to support terrorism or money laundering. According to Blockchain analytics company Elliptic, the Russian government is evading the sanctions put in place by the US and its allies as a result of Russia’s invasion of Ukraine by using cryptocurrencies. The research company located a Russian cryptocurrency wallet that included “large asset holdings.”
Turkey
The Republic of Turkey’s Central Bank adopted a decree in April 2021 outlawing the usage of cryptocurrencies in any way, whether directly or indirectly.
States of America
In the US, cryptocurrencies are accepted. Bitcoin is a convertible currency with a value equal to or substitutable for real money, according to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. Bitcoin has also been classified as property for taxation purposes by the Internal Revenue Service.
