The Indian government announced on Tuesday that might ban all except a few private cryptocurrencies in India while allowing an official digital currency by the RBI. Titled, “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” look for prohibiting all private cryptos in India in the upcoming winter session of the Parliament. On the other hand, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its usage.
With the introduction of the cryptocurrency bill, the government aims “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India.” This bill is among the 26 new bills that have been listed for introduction, consideration, and passing in the Lok Sabha, thus are to be introduced in the Parliamentary session.
There have been several controversies about the banning of cryptocurrencies, including Bitcoin which is the largest digital currency by market capitalisation to date. Quite a number of countries that consider that crypto investment and exchanges pose financial threats have placed limitations on the way Bitcoin can be used while several others have banned the use of Bitcoins and other cryptos and its use in any form is charged with a penalty.
Here’s the list of countries that have banned and restricted the use of cryptocurrencies like Bitcoin:
Nepal: In August 2017, The Nepal Rastra Bank declared Bitcoin illegal.
China: The country has been opposing the idea of cryptocurrencies since its launch. To deal with cryptos like Bitcoin, China even introduced its own government-regulated digital currency known as Digital Renminbi (RMB). Their government has also imposed restrictions on Bitcoin mining. Thus, it can be said that Bitcoin in China is banned.
Vietnam: According to the State of Vietnam, issuance, use, and supply of Bitcoin and other cryptos are regarded as illegal and are subjected as a punishable offense with fines ranging from 150 million VND (€5,600) to 200 million VND (€7,445). However, there is no ban on Bitcoin trading and holding them as an asset.
Colombia: Financial institutions are not allowed to carry on Bitcoin transactions. In 2014, the Superintendencia Financiera cautioned the financial institutions that they may not, “protect, invest, broker, or manage virtual money operations.”
Russia: Bitcoin regulation is not accepted by the country and its use as a payment for goods and services is regarded as illegal.
Ecuador: The Bitcoin and other cryptos were banned by the country by a majority of votes passed in the general assembly.
Bolivia: Since 2014, the country has banned all digital currencies as they do not undergo the regulatory radar of Bolivia’s economic system. The decision was placed stating the possibilities of various ponzi schemes and criminal activities.
Algeria: The country has imposed a ban on cryptocurrencies after the implementation of financial law in 2018 that made it illegal to buy, sell, use or hold digital tokens.
Egypt: In 2018, Egypt’s Dar al-Ifta, the primary Islamic advisory body in the country passed a religious decree stating Bitcoin as “haram”, something that is prohibited under Islamic law. Thus, following the advisory, the country banned crypto transactions as “haram.”
Indonesia: In 2018, the country’s central bank, Bank Indonesia, introduced a new regulation that stated the banning of Bitcoin as a means of payment. Since then, Bitcoin is banned in the country.
