[2019-09-07] Bitcoin Trading is now Banned in Burundi

squatter

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Quote from: jseverson on September 13, 2019, 01:38:35 AM

It might also have to do with Bitcoin threatening their remittances:

Quote from: https://www.coindesk.com/burundi-central-bank-director-strong-measures-will-be-taken-against-crypto-traders

Included in the ban are remittances made in cryptocurrencies. According to the World Bank, personal remittances received in Burundi represented 1.2 percent of the nation’s gross domestic product in 2018.

1.2 percent is a pretty significant chunk and crypto has the potential to take all of that away, since it doesn't look like they have any resources to spare for its monitoring and regulation.

I doubt bitcoin remittances represent a significant portion of that 1.2%. Plus, those are remittances received. Remittances received in any fashion are a boost for their economy. Burundi commits barely any spending towards AML regimes as it is, so I don't think that's their primary concern.

I think the government just received lots of complaints from scammed investors and they figured this was the cheapest, fastest way to address it.

jseverson

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It might also have to do with Bitcoin threatening their remittances:

Quote from: https://www.coindesk.com/burundi-central-bank-director-strong-measures-will-be-taken-against-crypto-traders

Included in the ban are remittances made in cryptocurrencies. According to the World Bank, personal remittances received in Burundi represented 1.2 percent of the nation’s gross domestic product in 2018.

1.2 percent is a pretty significant chunk and crypto has the potential to take all of that away, since it doesn't look like they have any resources to spare for its monitoring and regulation. It sucks for their citizens since this area is one of Bitcoin's strongest use cases.

bryant.coleman

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Third world nations with manipulated national currencies will always be afraid of Bitcoin. Because BTC provides a reliable store of value, when compared to the inflation plagued fiat currencies. I am not very knowledgeable about the situation in Burundi. But I guess it is not far behind other third world gems such as Zimbabwe, North Korea and Venezuela. The government will print banknotes without any limit and the toilet paper will become more valuable than these notes. Then when the citizens refuse to use these notes, they will star confiscating whatever gold and foreign currency that the people possess. The problem with Bitcoin is that it is a digital asset and can't be easily confiscated.

TIDOVEE

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Quote from: nulltxmark on September 07, 2019, 11:42:43 PM

This decision comes after some people in the country lost money while trading the various cryptocurrencies. There is no word on which currencies they were, or if the people invested in fraudulent offerings. Even so, the public demand for governmental intervention, and their decision is to get rid of all trading indefinitely. Not a popular decision, but it was somewhat to be expected.

Read More: Cryptocurrency trading banned in burundi

Any country that is protective of the citizens can actually go to the extent of banning crypto for the reason stated above. So many countries have not even accepted bitcoin with the motive that most money made online are fraudulent, and before it leads to violence, health and psychological problems or what the government may not be able to control, they fill quick banning is better. Fraud are everywhere causing problems.

leea-1334

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Like the article points out, this is just a knee jerk reaction of the government to a lot of people losing money to scams. It is the only thing they can do right now if they want to remain popular. This is politics. It is up to the people themselves to show the state they are responsible and smart enough to differentiate crypto from scammers. Bitcoin after 10 years also has this bad reputation of association with fraud but slowly people are seeing the truth.

slaman29

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Quote from: 1Referee on September 09, 2019, 11:11:58 AM

Don't underestimate people.

Prohibit something that people like or somehow need, and they'll go there where you don't have much oversight as government to get it.

It seems countries never learn this. The era of Prohibition in the United States was a big example. It was all the banning of things that created underground empires and lords.

I agree some things should always be banned but when talking about something people desire, and telling them they can't do it? What happens to children when you say they can't do things? They do them anyway but they hide it from you.

elda34b

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Trading ban per se is not possible unless you have surveillance over your citizen 24/7. Sure it is not allowed, but you can't stop it from happening.

On top of that, I doubt Burundi (if this news is real) can perform their rules to the full extent. It seems like there is a continuous civil war, and it's not finished yet. It's unfortunate for the people that live there. Hopefully, they can find a better life soon.

rodel caling

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That isn't a surprise news we need to respect the decision of the leaders or official of that country every country have a freedom of choice, therefore don't worry I think there nothing an negative effect that news for the crypto currency industry. Times comes for burundi if the official of that country realized how bitcoin can help to their country. There's a lot of news country didn't want accept bitcoin but times comes and understand well the importance of bitcoin as new digital money.

serjent05

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Quote from: Harlot on September 11, 2019, 10:49:59 AM

What they have done is a mistake. Simply people losing money from it doesn't make it a unreliable source of making money. This is what I hate when the wrong people are in charge with the country they instead give a solution rather than find a problem first. If I were them I would have instead teach them how to trade and invest rather than ban something that is legitimate on how to make money. Truly a dumb move from a countery that needs an asset market like the crypto market.

The banning of cryptocurrency in Burundi is a mistake in our POV but for the government officials, it is the right choice in "protecting" the economy and wealth of their citizen. Though, I believe this ban will not long. I guess this is just a precautionary measure while they are understanding cryptocurrency and while planning on how they can adopt it without these criminal taking advantage of it. Sometimes, banning it while laying plans on how to enable cryptocurrency to flourish in one country is much better than approving it with a half-baked regulations that can be exploited by criminals and scammers.

Harlot

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What they have done is a mistake. Simply people losing money from it doesn't make it a unreliable source of making money. This is what I hate when the wrong people are in charge with the country they instead give a solution rather than find a problem first. If I were them I would have instead teach them how to trade and invest rather than ban something that is legitimate on how to make money. Truly a dumb move from a countery that needs an asset market like the crypto market.

CryptoBry

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The Burundi government must be afraid that people will be turning to Bitcoin and cryptocurrency and then the control they have on the people can diminished dramatically. This is actually a big symptom of a corrupt government who is not transparent on things they are doing and are usually thinking for the welfare of the people generally speaking. While I understand that scammers are exploiting the opportunity they find in cryptocurrency, if they are studying the whole matter well, banning is not the solution but regulation which can even mean a new revenue stream of tax for the government if they do well. Anyway, Burundi could not affect the Bitcoin market so let's just hope and wish that the time is coming when the government will realize the mistake they did.

squatter

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Quote from: gentlemand on September 09, 2019, 02:19:43 PM

Quote from: Slow death on September 09, 2019, 12:58:12 PM

Countries like these do not have a good understanding of bitcoin and cryptos. I am African, but being honest, African has serious problems of understanding and humanism and African is easily manipulated by religion and tribalism.

Why shouldn't they have any more or less understanding than anywhere else? The internet is open to them. French and English are official languages.

Of course the main barriers are being broke as fuck and having more important things to worry about, but I see no reason why whole regions should have a giant comprehension blind spot.

Those are pretty huge barriers affecting a big swathe of African countries. In the case of Burundi, it's literally almost the poorest country in the world and its president recently changed the constitution so he could potentially rule for like 30 years. I'm not expecting countries like this to devote any resources to cryptocurrency policy development.

gentlemand

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Quote from: Slow death on September 09, 2019, 12:58:12 PM

Countries like these do not have a good understanding of bitcoin and cryptos. I am African, but being honest, African has serious problems of understanding and humanism and African is easily manipulated by religion and tribalism.

Why shouldn't they have any more or less understanding than anywhere else? The internet is open to them. French and English are official languages.

Of course the main barriers are being broke as fuck and having more important things to worry about, but I see no reason why whole regions should have a giant comprehension blind spot.

Slow death

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Sometimes we have to look at the country and its history to understand certain things in the case of Burundi. look at burundi history, look at burundi politics, look at burundi economy and look at burundi religion. It is a country with many mineral resources, but has a high level of poverty, is a country that has ethnic conflicts. Countries like these do not have a good understanding of bitcoin and cryptos. I am African, but being honest, African has serious problems of understanding and humanism and African is easily manipulated by religion and tribalism.

BitHodler

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Quote from: Kakmakr on September 09, 2019, 01:53:19 AM

So, if countries and governments cannot see or do not want to see how a global currency can create more jobs and how a currency like this can help them, then they will just continue to be a struggling 3rd world country. Angry

It might also be related to how the elite there likes the fact that they are enriching themselves more. The less time and money you waste on people you don't care about anyway, the more there is for you to tap into.

The leaders of third world countries tend to dress up in outfits that the regulars would take a decade to accumulate through hard physical work. It's so unfair yet so common.

Ignorance is a powerful weapon the government possesses. North Korea is the most extreme example of how ignorance is being utilized as such. In less extreme forms we see also it happen in other third world countries.

figmentofmyass

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Quote from: 1Referee on September 09, 2019, 11:11:58 AM

Quote from: hatshepsut93 on September 08, 2019, 05:01:34 PM

If cryptocurrencies are fully outlawed, there's nothing great for any market, because why would people risk going to jail or paying a huge fine over simply trading? They would just go back to trading stocks and other instruments, and those who want just a store of value will buy gold or the US dollar.

Don't underestimate people. China has made the practice of exchanging Bitcoin (or any other crypto) to fiat illegal by law, yet the local markets there count millions upon millons of traders who are still involved.

well, p2p trading isn't actually illegal. china outlawed trading platforms (businesses) from exchanging fiat to crypto but they didn't do anything to discourage individuals from trading. i assume this is because they could easily crack down on centralized exchanges with an iron fist. it would be untenable to effectively target individual p2p traders.

1Referee

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Quote from: hatshepsut93 on September 08, 2019, 05:01:34 PM

If cryptocurrencies are fully outlawed, there's nothing great for any market, because why would people risk going to jail or paying a huge fine over simply trading? They would just go back to trading stocks and other instruments, and those who want just a store of value will buy gold or the US dollar.

Don't underestimate people. China has made the practice of exchanging Bitcoin (or any other crypto) to fiat illegal by law, yet the local markets there count millions upon millons of traders who are still involved. In other countries the reaction to a ban has also lead to a massive boost of local trading volumes. Once people get involved, they mostly don't go back.

Hard drugs are a great example of how fully outlawing something doesn't help. In some countries using/owning/selling/buying hard drugs leads to a death penalty, yet it happens continuously. It's a global market worth hundreds of billions and growing rapidly despite how every single country is doing what it can to curb that growth and come up with even harsher penalties.

Prohibit something that people like or somehow need, and they'll go there where you don't have much oversight as government to get it.

Kakmakr

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Why is this a surprise? Burundi is known as the hungriest nation on earth. The whole country has a population of about 10,86 million people, so it is just a very small country with a corrupt government. The main activity in Burundi is agriculture and they are constantly fighting over land. Roll Eyes

So, if countries and governments cannot see or do not want to see how a global currency can create more jobs and how a currency like this can help them, then they will just continue to be a struggling 3rd world country. Angry

Teach somebody to fish, but if they are too lazy to fish, they will die of hunger. Shocked

Naida_BR

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I don't even know if there is people in Burundi who use Bitcoin and Cryptocurrencies.
It is not a big hurt for the crypto industry. If other big countries such as USA, Russia, China etc will start using cryptocurrencies then Burundi is going to revert its decision.

Vishnu.Reang

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I don't expect the third world nations such as Burundi to legalize Bitcoin, until all of the developed nations does that. And Bitcoin is still not 100% legal in some of the developed nations. It will not happen overnight. We need to remain patient and do whatever we can, to assert pressure on the law makers.

Topic: [2019-09-07] Bitcoin Trading is now Banned in Burundi (Read 387 times)