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According to a report from the US Congress, over 25% of countries are now banning the use of crypto-assets within their borders, in November 2021. A figure on the rise especially because of the illegal activities that cryptocurrencies could allow.

51 Countries are now banning Cryptocurrency.

As stated by a report from the Global Legal Research Directorate of the Law Library of Congress, 51 countries currently restrict the use of cryptocurrency in various forms. This report constitutes an update of its first version established in 2018. It can be read in particular that the number of countries totally prohibiting the circulation of crypto-assets has increased from 8 to 9, while those partially limiting their use has gone from 15 to 42.

The 9 countries totally banning the use of cryptocurrencies are the following: Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Qatar, Tunisia and China.

In a number of jurisdictions, authorities have wished to highlight that crypto-assets, unlike global currencies, are neither issued nor controlled by central banks and are furthermore subject to high volatility. It is also pointed out that the anonymity provided by exchanges made in cryptocurrencies creates illegal market opportunities such as money laundering or terrorism.

Indeed, in 2013, more than a billion dollars had been seized in the form of bitcoin following the closure of the Silk Road site, one of the largest illegal online markets, selling among other things weapons and drugs.

According to a Chainalysis report published in January 2022, Cryptocurrency crime hit an all-time high in 2021. It is therefore questionable whether the trend of cryptocurrency ban will continue to grow.

You can read the 67 pages report made by the Global Legal Research Directorate here or read below our summary, focusing only on the countries with cryptocurrency restrictions.

42 Implicit ban on cryptocurrencies.

African countries which have an implicit ban on cryptocurrencies.

Bahrain: Banks and other financial institutions are prohibited from dealing in cryptocurrencies or offering services to individuals/businesses dealing in cryptocurrencies. Al Maraj: “We Do Not Recognize Bitcoin and It Is Dangerous to Deal with It“, Al-Watan (Jan. 7, 2018).

Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger : Those countries are served by the Central Bank of West African States (BCEAO). The BCEAO declared that it is “against” Bitcoin, and that crypto currencies are “not admitted” in the BCEAO zone.

Burundi: Since virtual currencies or crypto-currencies are not regulated and are not issued or guaranteed by any Government or Central Bank, these currencies are not legal tender in the territory of Burundi.

Cameroon, Central African Republic, Chad, Gabon: Those countries are members of the Economic and Monetary Community of Central Africa (CEMAC). The communiqué is stating that since cryptoassets are unregulated within the CEMAC, the offer of services related to cryptoassets is illegal.

Democratic Republic of the Congo: Cryptocurrencies, bitcoins and other virtual currencies on electronic platforms are neither regulated nor permitted.

Lesotho: The Central Bank of Lesotho (CBL) has warned the country against embracing cryptocurrencies, saying they were not legal tender in this Kingdom and those who did so risked violating tax, exchange control and anti-money laundering laws.

Libya: Financial institutions are banned from dealing in cryptocurrencies.

Namibia: The Bank Of Namibia “does not recognize, support and recommend the possession, utilization and trading of cryptocurrencies by members of the public.”

Nigeria: Nigeria imposed a crypto ban on February 5th, 2021. Africa’s largest cryptocurrency market has banned banks and financial institutions offering crypto services since 2017. Moreover, the announcement even threatened to close bank accounts that use cryptocurrency exchanges.

Zimbabwe: The Reserve Bank of Zimbabwe issued a Warning Against Trading in Cryptocurrencies in May 2018. However, the Zimbabwe Court temporally Lifts Central Banking Ban on Bitcoin Exchanges few days later. Following the High Court Order, the Reserve Bank is said to have filed a notice of objection with the Court. At the moment, no source indicating a resolution of the matter was updated.

American countries which have an implicit ban on cryptocurrencies.

Bolivia: The government has imposed a complete ban in 2014 on all currencies that aren’t regulated by a country or economic zone. The Bolivian government justified this decision with the possibility of various Ponzi schemes and criminal activities. Financial entities are forbidden from using, commercializing, and negotiating cryptoactives (digital or virtual coins) in national payment system.

Ecuador: Bitcoin and other cryptocurrencies have been banned in Ecuador by a majority vote of the National Assembly. Cryptocurrency is not an authorized means of payment; sale and purchase of cryptocurrencies is not prohibited.

Guyana: Cryptocurrency is Not Legal in Guyana.

Asian countries which have an implicit ban on cryptocurrencies.

Indonesia: Indonesia does not allow cryptocurrencies to be used as a payment instrument, but does allow them to be traded as a commodity.

Jordan: Financial institutions are prohibited from dealing in cryptocurrencies. The public is warned against dealing and investing in cryptocurrencies.

Kazakhstan: In July 2020, Kazakhstan officially recognized Bitcoin as a digital asset that could be accounted as any other commodity. The AIFC (which is a national financial hub has as main objective to ensure a friendly ecosystem for foreign investments and secure independent regulation.) Fintech rules allow establishment of crypto exchanges and building other regulated activities based on digital assets.

Kuwait: Ministry of Finance Says [It] Does Not Recognize Virtual Currency Bitcoin. Kuwait does not have a personal income tax law. Other tax laws are not applied to cryptocurrencies.

Lebanon: Financial institutions are banned from dealing in cryptocurrencies.

Macao: Macau cautioned the public against firms offering cryptocurrencies in the autonomous region, reminding local residents that virtual currencies are not legal currencies or financial instruments.

Maldives: The Maldives Monetary Authority brings to the attention of the public that no party has been granted permission to conduct any financial transactions using crypto currencies or other virtual currencies in the Maldives. Furthermore, the issuance of any legal tender by any other party is against the law.

Oman: Financial institutions are prohibited from dealing in cryptocurrencies. Omani citizens should be careful with anything related to cryptocurrencies. Oman does not have a personal income tax. Other tax laws are not applied to cryptocurrencies.

Pakistan: Prohibition of Dealing in Virtual Currencies / Tokens. However, according to a news report, “The State Bank has not imposed a ban on cryptocurrency in Pakistan, the central’s bank lawyer told the Sindh High Court,” only a warning.

Turkey: On April 16, 2021, the Central Bank of the Republic of Turkey issued a regulation banning the use of cryptocurrencies, including Bitcoin. The following day, Turkish President Recep Tayyip Erdoğan went further, issuing a decree placing crypto exchanges on a list of entities subject to anti-money laundering and terrorist financing regulations.

Turkmenistan: Digital assets are recognized as property and cannot be used as a means of payment. They have been divided into two types – secure and unsecure. Cryptocurrencies have been classified into the second type. Their release and movement within the territory of Kazakhstan are prohibited “except in cases provided for by law”.

United Arab Emirates (UAE): UAE Has Not Legalized Cryptocurrencies, Says Central Bank on December 6th, 2020. The Central Bank does not recognize cryptocurrencies as a form of payment yet. However, it is working on a new regulation for retail payment services that introduces the concept of tokens that could be used for payment purposes.

Vietnam: Cryptocurrencies are not legal currencies or a means of payment in Vietnam, and any issuance, supply, or use of them as currency or a means of payment is prohibited, and subject to administrative or even criminal sanctions.

European countries which have an implicit ban on cryptocurrencies.

Georgia: As of June 28th, 2019, “Cryptoactive is neither a legal tender nor an electronic money under Georgian law” (Page 1, 2- Substantiation of public decision and legal grounds).

Moldova: the National Bank of Moldova confirmed its position that virtual currencies are not currencies in the general sense of the term, but instead are virtual assets without real coverage and backing, which does not allow accepting it as means of payment and means of reimbursement by the monetary authorities.

Oceanian countries which have an implicit ban on cryptocurrencies.

Palau: The Financial Institutions Commission (FIC) issued a resolution on Mar. 19, 2019, that places a moratorium on all financial activities involving virtual assets or currencies until such activity can be regulated.

9 Absolute ban on cryptocurrencies.

African countries which have an Absolute Ban on Cryptocurrencies.

Algeria: All use of private cryptocurrencies is prohibited. No person or bank can deal in cryptocurrencies.

Egypt: Egypt’s main Islamic advisory body, Dar al-Ifta, issued a religious decree classifying Bitcoin transactions as “haram,” something that is forbidden under Islamic law. So the country is abiding by the decree and considers any transaction involving cryptocurrencies as “haram”. Individuals, banks, and other financial institutions are prohibited from dealing in cryptocurrencies. No person can deal in cryptocurrencies.

Morocco: Morocco has banned bitcoin and cryptocurrency transactions which may be used for illegal purposes, including money laundering and terrorism since November 20, 2017. The Moroccan Exchange Office informed the public that transactions conducted using virtual currencies constitute a violation of the exchange regulations and are subject to penalties and fines.

Tunisia: Tunisia’s Central Bank does not recognize or deal in cryptocurrencies as a form of payment. A 17-year-old Tunisian boy was arrested in Tunisia in 2021 for using cryptocurrency in an online activity.

Asian countries which have an Absolute Ban on Cryptocurrencies.

Bangladesh: Although repeated notices have been issued on the illegality of cryptocurrency transactions in Bangladesh, confusion was created after reports that the Bangladesh Central Bank sent a letter sent to the Criminal Investigation Department of the Police suggesting that trading in cryptocurrency in itself is not a criminal offense, and “should be deemed as crimes if they involve money laundering or terror financing.” the Central Bank of Bangladesh does not allow crypto trading as it violates the country’s financial regulations (Money Laundering Prevention Act) for trading foreign currencies that are too decentralized. Crypto traders caught trading cryptocurrencies can face years in prison in the country.

China: Since the advent of digital currencies, China has been cracking down on cryptocurrencies and has been quite brutal with its restrictions. To deal with cryptocurrency giants like Bitcoin, China has even introduced its own centrally regulated digital currency called Digital Renminbi (RMB). The government has also cracked down on Bitcoin mining in the country. With this, it can be said that Bitcoin is essentially banned in China.

India: On April 6, 2018, the Reserve Bank of India (RBI) issued a notification prohibiting banks, lenders, and other regulated financial institutions from “dealing with virtual currencies. However, the Supreme Court of India overturned the RBI’s 2018 circular prohibiting banks from dealing with cryptocurrency exchanges. The court found that a blanket ban “was disproportionate and that virtual currencies had caused no visible damage to banks regulated by the RBI”.

Iraq: Penalties in anti-money laundering law will apply to anyone dealing in cryptocurrencies.

Nepal: All transactions related to or regarding bitcoins are illegal.

Qatar: Qatar warned banks against trading cryptocurrencies in 2018. The government urged banks “not to trade bitcoin, exchange it for another currency, open an account to trade it, or send or receive money transfers to buy or sell this currency.” Those caught have been told to expect penalties. The Central Bank effectively prohibits all banks operating in Qatar from dealing in cryptocurrencies, subject to penalties for violators. The Qatar Financial Centre (QFC) bans all cryptocurrency-related activities, including cryptocurrency exchanges, within the sector to combat money laundering and the financing of terrorism.

But remember,

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