[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.

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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.

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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.

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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.

bbc.reporter

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Regulating the cryptospace will be a new type of crisis for 3rd world countries. It is easy to search for the tools needed to hide your online activities hehe.

In any case, what are that popular ways to move in Africa outside the banking system and through text messaging?

malevolent

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

It's almost a pattern already that poor and underdeveloped countries are the quickest to ban crypto - I wonder why? Do they feel threatened the most, or is it just lack of competences from the government?

These countries are more likely to be authoritarian, it's easier to make such abrupt and rash decisions when there aren't as many checks and balances as there are to be found in most developed democracies.

DooMAD

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

It's almost a pattern already that poor and underdeveloped countries are the quickest to ban crypto - I wonder why? Do they feel threatened the most, or is it just lack of competences from the government?

Those governments feeling the most insecure can't be very confident in their grip on power, I guess. If you want to control the people, it helps to be in control of their money. As someone on the outside, looking in, it would appear they can't see Bitcoin providing any benefit to their (seemingly oppressive) regime, so instinctively seek to limit its use. Seems like restricting freedom is a natural reaction for places with such well documented human rights violations.

hatshepsut93

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It's almost a pattern already that poor and underdeveloped countries are the quickest to ban crypto - I wonder why? Do they feel threatened the most, or is it just lack of competences from the government?

Quote from: 1Referee on September 08, 2019, 02:47:07 PM

These type of events are great for the local peer to peer market because what else will incentivize people to follow that route? If people are being treated nicely by centralized exchanges and governments don't really make a point out of it, then what incentive is there for them to go peer to peer? In these cases governments are helping the crypto ecosystem in general to become more distributed. Not bad.

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.

pixie85

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Quote from: figmentofmyass on September 08, 2019, 01:34:46 PM

Quote from: gentlemand on September 08, 2019, 05:02:52 AM

Can't find the link in that article confirming it but 9.7 times out of 10 when a country 'bans' Bitcoin it's telling its banks they can't trade in it or offer it for sale - which no bank on the entire planet does as far as I know.

details are scant. this is from bloomberg: Burundi Bans Trading of Digital Currencies

it sounds like it was a knee jerk reaction to consumer/investor protection complaints from residents.

Quote

Burundi banned all trading of cryptocurrencies on its soil, saying it couldn’t offer digital money users protection in case of problems.

Some Burundians lost money while trading virtual currencies and asked the government to intervene, according to Alfred Nyobewumusi, a director at the central bank’s micro-finance department. Digital coins such as Bitcoin and Ethereum are now illegal in the country, he said.

“Strong measures could be taken against all those who will not respect this decision,” he said in an interview in Bujumbura, Burundi’s economic capital.

As always great move by the government and the people who complained. They bought rotten eggs and got scammed so they went crying to the government to ban egg trading in general so they won't be able to get scammed again. What a bunch of idiots.

On the positive side there's only 10 million people living there and at least a third of them has no internet access. They couldn't care less.

1Referee

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Quote from: bL4nkcode on September 08, 2019, 01:26:23 PM

Instead of banning, the government should let its people know the risk of using crypto, guide them on how to protect their crypto-asset or the safety/savings like what they do here in my country.

I don't think we have seen any government thus far do that aside from the known 'be careful with crypto because it's a high risk asset class' type of warning.

These type of events are great for the local peer to peer market because what else will incentivize people to follow that route? If people are being treated nicely by centralized exchanges and governments don't really make a point out of it, then what incentive is there for them to go peer to peer? In these cases governments are helping the crypto ecosystem in general to become more distributed. Not bad.

figmentofmyass

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Quote from: gentlemand on September 08, 2019, 05:02:52 AM

Can't find the link in that article confirming it but 9.7 times out of 10 when a country 'bans' Bitcoin it's telling its banks they can't trade in it or offer it for sale - which no bank on the entire planet does as far as I know.

details are scant. this is from bloomberg: Burundi Bans Trading of Digital Currencies

it sounds like it was a knee jerk reaction to consumer/investor protection complaints from residents.

Quote

Burundi banned all trading of cryptocurrencies on its soil, saying it couldn’t offer digital money users protection in case of problems.

Some Burundians lost money while trading virtual currencies and asked the government to intervene, according to Alfred Nyobewumusi, a director at the central bank’s micro-finance department. Digital coins such as Bitcoin and Ethereum are now illegal in the country, he said.

“Strong measures could be taken against all those who will not respect this decision,” he said in an interview in Bujumbura, Burundi’s economic capital.

bL4nkcode

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Quote from: Das on September 08, 2019, 11:57:00 AM

I can assure you that the ban won't last.
Crypto enthusiasts in Burundi will find a way around it... Now that we have tor browser and other VPN-hiding sites out there.

It might last but that won't stop those traders or crypto users to access the internet and still follow and use bitcoin/crypto for every transaction they made on the internet in that country.

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.

Instead of banning, the government should let its people know the risk of using crypto, guide them on how to protect their crypto-asset or the safety/savings like what they do here in my country.

Das

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I can assure you that the ban won't last.
Crypto enthusiasts in Burundi will find a way around it... Now that we have tor browser and other VPN-hiding sites out there.

cr1776

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Trading vs using vs holding for investment purposes vs development vs ... .

At least (assuming the article is accurate which is often doubtful) they are leaving several options available. Not that it really matters to the world at large, but probably really matters to their citizens.

snipie

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Small countries in term of economic weight, are making the usage of cryptocurrencies difficult for their citizens legally. However most people in these countries don't know what crypto is...and for sure aren't aware of the existence of crypto services if ever were present...
People in these countries are just owning cryptocurrencies online, holding it then trading it online also without passing by any stupid services in their countries.

gentlemand

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Quote from: davis196 on September 08, 2019, 06:57:22 AM

Joke aside,it's sad that poor underdeveloped countries refuse to adopt such a disruptive technology.

Places like that will be massively under the thumb of international banking even though they deny the average inhabitant any meaningful access to the wider world of money.

It would be interesting to see what would happen if one of these places decided to go balls out towards an alternative system of finance. It's not as if the present system has done them many favours.

davis196

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Damn,this is a tragedy.What are we going to do without Burundi?This is such an irreplaceable country for the entire crypto world. Sad

What about other countries like Somalia,Mozambique and Tanzania?I'm sure that millions of bitcoin users and crypto whales live there. Grin

Joke aside,it's sad that poor underdeveloped countries refuse to adopt such a disruptive technology.

Lucius

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It may seem like a drastic measure, but if people are not aware what cryptocurrency really represents, and what risks are involved in trading / investing, then some countries need to react like this. Nothing is final, so this decision may change over time. Those who still want to trade with crypto will find a way to do this despite the ban on trading in the domestic market.

I do not agree that this decision will affect other countries in Africa, although many view Africa from some unique angle, each country conducts its own policy toward cryptocurrency.

hugeblack

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It's not that they don't want cryptocurrencies but legislation to protect consumers.
It was preceded by a warning that transactions should be conducted through institutions licensed by the Central Bank.

Quote

Nyobewumusi further stated, “strong measures” will be taken against those that do not follow the law

Also, this phrase is loose and if a law is enacted, clear penalties must be applied.

Overall, Africa does not have clear rules on the acceptance or prohibition of cryptocurrencies.

gentlemand

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Can't find the link in that article confirming it but 9.7 times out of 10 when a country 'bans' Bitcoin it's telling its banks they can't trade in it or offer it for sale - which no bank on the entire planet does as far as I know.

nulltxmark

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Not a day goes by without some intriguing development affecting the cryptocurrency industry. African nations are often relatively quiet on this front. Although Bitcoin can make a positive impact across that continent, not all governments want to give it a fair chance. That is unfortunate, but also completely to be expected.

Burundi Doesn’t Want Crypto

It is rather interesting to see how governments still oppose Bitcoin and similar currencies in 2019. While crypto doesn’t have the best reputation by any means, completely banning the trading of it will only have an adverse effect. In Burundi, the government has officially banned all cryptocurrency trading this week, albeit it remains to be seen if that countermeasure will prove to be even remotely successful.

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

Topic: [2019-09-07] Bitcoin Trading is now Banned in Burundi (Read 392 times)