BITCOIN AND LEGAL BANS

The acceptance of bitcoin varies from country to country and the reasons for those who have banned it equally vary. It is useful to take note of those who have declined it, in order to stay clear of infringing upon the law.

Bangladeshi banned the usage of bitcoin in order to tackle money laundering activities that have been bothersome on the country’s financial activities due to its close border with Myanmar, a country known for money-laundering activities. Therefore, the law states a jail term for anyone caught using cryptocurrency as it fall under the infringement on the country’s anti-money laundering laws.

Russia – the state of bitcoin’s acceptance in Russia is yet undefined, however, during its first inception, it was considered illegal for reasons of terrorism, cybercrimes financing and the use of cryptocurrencies in money laundering and Ponzi schemes. Therefore, it was recognized as a foreign currency but not given total acceptance.

Iceland – the government in Iceland is simply scared of the challenge bitcoin is going to pose on the national currency and has therefore restricted any transactions on the virtual currency.

China remains the centre of bitcoin mining since it one of the world’s largest economies, however, transactions with bitcoin is only allowed among individuals in terms of storage and exchange as their financial institutions cannot hold or transfer bitcoins. Perhaps, someday it will be accepted as a part of financial regulation but not as a legal currency alongside the existing one.

Ecuador is one of the first countries to ban bitcoin from its inception in 2009 as the government has placed a ban on any currency that is digital. It was also rumoured that their ministry of finance are on the way to developing their own cryptocurrency.

Indonesia turned from being warm towards the idea of bitcoin to issuing a ban after a year, for reasons of its being a potential payment method for scams and money laundering.

Bolivia issued a strict ban on bitcoin for reasons of not wanting their citizens to lose their funds even when neighbouring countries accepted it.

In Taiwan, after years of acceptance and usage of bitcoin by merchants, it was finally banned in November 2014, for reasons of its perceived potential dangers.

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