Topic: Why is cryptocurrency illegal in some countries? (Read 539 times)

Inflation is caused by a country's currency losing value, and the value of the currency depends on the health of that country's economy. Bitcoin cannot create jobs, cannot make energy cheaper or cannot help attract investors to the country...How does Bitcoin help countries escape inflation? Bitcoin is a deflationary asset but that doesn't mean it will be strong enough to help the country or the world's economy escape inflation, don't be delusional.

Do you believe what they say? Have you ever wondered, what did criminals use for their illegal activities when bitcoin was not yet around? Is it fiat currency, and has the government ever condemned or banned fiat? What the government says about bitcoin only shows their deadlock in finding bitcoin's weakness to ban it, they don't find any real reason to ban it and they only give stupid reasons. Don't rush to believe what they say, do your own research to know the truth they are trying to hide from you.

But I will not agree with you that bitcoin can help your country escape inflation. Bitcoin is a highly volatile asset, relying on it poses huge risks to the economy. Furthermore, solving inflation and helping the country develop requires many different factors and that is not bitcoin's mission.

Bitcoin is decentralized, which cannot be controlled by governments, so many countries believe that criminals can easily finance and operate activities using them.  Bitcoin is considered illegal in my country especially for this reason. I think Bitcoin works great and can save the country from inflation.  This is the only reason bitcoin is illegal, the government can't control bitcoin. But that doesn't stop bitcoin, bitcoin is moving at its own pace. I hope for the future more countries will accept bitcoin and decide to legalize bitcoin.

The government hates decentralization.  This is because the government likes to be incharge. They like to control their citizens and be involved in thier activities (financial activities inclusive). The use of certain cryptocurrencies like Bitcoin or other private coins cannot avail the government this opportunity of controlling the financial activities of her Citizens.

Use of cryptocurrencies tends to lower the revenue the government gets from her Citizens through taxation. It will be difficult (if not impossible) for the government to know the percentage of tax to impose on owners of private coins except the taxes are imposed on the goods and services they enjoy which is not fair enough.

The government is also aware that fraudsters carry out their criminal transactions on the cryptocurrency exchange due to the private nature of most of these coins using the dark Web Because they know they will never be caught.
The government is aware of all this, hence the illegalization of cryptocurrency.

There could be many reasons that countries are not legalizing cryptocurrency. The price volatility and regulation is the main reason. Apart from this, money laundering, scams, terrorism financing, and the risk of losing money because the anonymity is high. As Bitcoin is decentralized, it is difficult to monitor transactions and implement taxation. The Governments will not have control over the money/ financial transactions and feel powerless because they want to control everything. Some countries are looking to regulate cryptocurrency, and we might see some implementation in the near future.

There is no world rule that definitely prohibits Crypto from developing. So some States have the power to set policies, definitely using the power to regulate them. Although they regulate because there are advantages to be had in crypto activities such as taxes. But there are countries that have banned it like China. Governments can never turn crypto into a centralized one. The community will never agree. They can only touch crypto from the outside with rules that keep governments from losing money and so as not to become a threat to their financial circulation. I am currently very happy with my country's policies as they are still giving crypto room to continue to grow.

You mean, if bitcoin were centralized then the government would be immediately legal? That will never happen either, because if bitcoin becomes centralized then it is no more than junk, like fiat or a government-created asset. It would be useless and no one would need it and the government could create much better things than it. So if bitcoin is centralized, they won't have the headache of figuring out how to handle it.

More or less like that too. Due to its decentralized nature, the room for creating a single profit is also reduced. If the nature of BTC were the other way around, I'm sure countries around the world would quickly legalize it. The government needs another version of Bitcoin or crypto which may be like the currency currently circulating, which is why many CBDC issues have emerged. CBDC is capable of being moved, capable of being regulated and capable of carrying the burden of the government's wishes with all the control of the government that issued it. Meanwhile Bitcoin or other crypto is driven by the community. Who is in power in crypto, a group or individual who holds a lot of coins in my opinion.

Please correct me if I'm wrong.

The government banned cryptocurrency because of its feature that goes against their regulation.  Since cryptocurrency has decentralized nature, some government find it too hard to accept because they can't implement their national law immediately, so while the government is creating and reviewing policy for cryptocurrency, the government thinks that it is better to ban them than implementing them without proper regulations to avoid conflict and confusions.

From the onset bitcoin has been having challenges and many government never believed that bitcoin will be as strong it's today, in bitcoin, its running a decentralized currency in which is not centralized and since its not centralized many countries rise against the technology behind bitcoin development, and mostly all their mindset goes this way that bitcoin the technology the aim or objective of it as a decentralized system of currency is to embezzled funds without been traceable, so with this concept I believe that is while bitcoin have no ground of at least two influential accept it or embrace it as a legal tender.

Frankly so. Cryptocurrency can be also considered illegal in some countries because it is the individuals power over his/her finance. The government gets off on keeping the citizens under control by having a say in the resources available to them and even hiking and causing scarcity because they simply want to. Besides the fact of money laundering, crypto allows transaction across border without anyone even knowing.

You're right and apart from what you listed the truth is that cryptocurrency will not be universally legal because some of the people in the government are not updated with modern technology and never understand the real concept of cryptocurrency their belief is that is mainly something for money laundering, terrorist financing, and tax evasion. Other things that will make crypto illegal in some countries are no consumer protection,lack of regulation, and native laws and regulations due to religion.
If the Bitcoin spot ETF is accepted we may see some change.

This thing happen in our country, crypto is illegal and no one trying to make it legal or going to court for the sake of making crypto legal in our country, as this also puts some difficulties for the government, as in our country the government is not issuing because they want their currency (Rs) to be on the top. And so many other problems has been here.

Government are simply scared that they can't control it and they have no power to do anything about the transaction. The only thing they can do is to simply regularize in using it or ban it in their countries. They show what bitcoin can be use on negative things like money laundering, increased scams and others but they hide the fact that they won't capitalize in it. We know where we are headed but we can't do anything if these countries ban the unstoppable future.

Volatility is never the reason why cryptocurrency is not accepted in some countries. Cryptocurrency like Bitcoin is a uncensored, temper-proof, decentralized, digital currency that puts power in the hands of the people. Government cannot control the way people spend their money because it cannot be frozen, so they see it as a threat to fiat.

All transactions with cryptocurrency are registered on the blockchain. It cannot be doctored and it can be traced unlike fiat transactions that can be deleted or erased from the system. BTW, research has it that fiat^[1] is the most laundered currency in the world by criminals.

1. https://www.zippia.com/advice/money-laundering-statistics/

Most countries haven't banned Bitcoin but have established an unfriendly environment for Bitcoin to grow in the country. The only reason I see why the government is banning Bitcoin is because Bitcoin is decentralized and they know they can't regulate or control it. All the other reasons they're giving is a lie as it doesn't have enough merit to ban Bitcoin. The excuse of Bitcoin been used by criminals and they can't be tracked is a lie because Bitcoin is operated on a public ledger that the government or anyone can have access to but fiats is the most used currency for crime and yet the government hasn't ban it for centuries. Bitcoin price been unstable isn't a weakness but an advantage for traders to take opportunity of the volatility of the price to make profits.


The government are threatened by this fact that their financial institutions (the banks) that they use to monitor their citizens are no longer important in finalizing a transaction. Transaction can now be done without needing a third party and the transaction are 10x faster than when banks are been used and there's no limitations. The government knows the potential of Bitcoin and that's why they're trying so hard for it not to succeed but they have failed before they already started because Bitcoin doesn't need the government approval to establish itself in the finance sector. It just newer time and adoption which can be gotten through awareness and all this will happen in the nearest future.

Talk of Bitcoin being misused is still a strong reason for them not to legalize it. We are sometimes confused by the government's unclear attitude regarding this matter. We want to say that they are organizers who are good at lying on one side of the truth because they are not consistent with the reasons that have been issued. On the one hand, they continue to address the issue that Bitcoin is often used for illegal actions, while they also continue to try with CBDC, which has many ways to go.

I agree and for me it is very suitable for their situation. They really don't have any more ability to control Bitcoin even though they have all the power to block other things but are unable to control Bitcoin.
They are very petty.


For certain countries that do not restrict the use of Bitcoin, they are very grateful, but for countries that are very opposed to Bitcoin, they will not open up space to their citizens in the slightest, it is regrettable. Perhaps by providing space for the use of Bitcoin as an investment and trading asset, the government of a country has carried out its role as a state administrator well because its citizens can earn income from the trading and investment activities they carry out.

Aside from the said reason above, the government will not track the transactions of its people and the bank will lose a lot of its client. They also think that it is possible that it can be used in illegal activities and they have no counter-measure if this happen. It is also possible that the country is not yet ready to adopt the technology to do transactions online.

The op lists common reasons for banning Bitcoin and other cryptocurrencies, so I'm not sure that it's even a question.
Of course, officially cited reasons may be different from actual reasons, and the actual ones may involve the desire to have more control over the population, as well as successful lobbying by banks leading to the government defending their interests.
Looking through the thread, it seems to me that many of us here share the view that the desire of more oversight, control over citizens is among the top reasons.

Indeed, bitcoin's decentralization brings us a lot of benefits, but for the government it is not good at all because they need more centralization to consolidate power. If they lose control of their citizens, it means they will collapse. So, it's no surprise or shock that governments don't like bitcoin and ban it. I think Satoshi himself foresaw this when he created bitcoin and that's why he decided to remain anonymous and leave no trace. But the question is, can the government ban bitcoin forever? When people defy the ban to use bitcoin.