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.

Each country has its own considerations and policies. Whether BTC is legal or illegal in a country is also influenced by economic conditions, cyber conditions and much more. For example, in a country prohibiting BTC as a legal means of payment and making BTC illegal, this aims to stabilize the circulation of their currency so that it does not decline or for some other reason such as BTC has not been accepted because many people in that country are not ready due to lack of information. It is feared that there will be mass panic due to BTC's wild volatility, this will actually increase the burden on the government. I am sure that every country knows what BTC is and continues to carry out research and learning so that it does not rule out the possibility that BTC will be legalized in the future.

Bitcoin takes away some of the power banks and governments have accumulated over the years, tell me, do you think they like it? And as you may guess the answer to that is no, governments do not like it as bitcoin allows a person to bypass their money printing policies, or to put it in other words, they cannot use the inflation tax against you, and banks do not like it as their job as a middleman is not needed anymore, then it is not surprising that both are making movements to try to limit the adoption rate of bitcoin all over the world.

I keep on asking people maybe people were not being scammed before the existence of bitcoin, which currency was being used by scammers then? And why is it that the government didn't declare the currency illegal then? The government is just fighting for their own selfish interests, they know they can't control bitcoin, which is why they are just against it, and they need a currency that they can control. All those reasons that they are giving are just excuses, they know what bitcoin is really about and they know how useful it is, but they are fighting against it because they won't be controlling it and they won't be benefiting directly from it.

All governments are against bitcoin for almost the same reason, all of them are just sides to split the reasons, all of them will say bitcoin is used for illegal activities, but we all know that that's not the main reason why they are against it, it's just an excuse. If most countries legalize bitcoin, then the banking sector is already gone, no one will be making use of banks again. People will rather keep their money in their wallets and make transactions with bitcoin. That's why even banks are fighting against bitcoin because they know it's going to affect them.

Absolutely, all government have control well all aspect and difficult if Bitcoin have been legal currency transaction have powerful how to make price stable, seems government aware with their people when investing or using bitcoin as legal payment currency get impact with price drop later because current bitcoin price up and down outside of government controlling. Beside have competitor with some country against Bitcoin become legal payment transaction due awareness one day later Bitcoin will more dominance and fiat currency will loss their position replacing by Bitcoin.
During bitcoin not restrict or banned by government have been enough for us who get benefit with investment and keep consistency trading bitcoin as our side job or could be main job to earn profit.

You are right, that is the most reasonable reason as to why the government is not legalizing it. But governments often don't state this main reason because they argue there are specific reasons why bitcoin should not be legalized as currency. We often hear that bitcoin are used for illegal actions that violate the law, but that is the other side they talk about the use cases of bitcoin.

Misuse of bitcoin has been the main reason why governments don't legalize it, but I'm sure it's not the main reason they should reveal. The government's supposed inability to control bitcoin is the main reason why they don't want to legalize it.

My negative opinion towards them is because of the fear of not being able to share in the profits if they legalize it. The government runs a government system with their control over all aspects including economic aspects. They want complete control of the financial system.
If they legalize Bitcoin as legal tender, they can't control it. Some cryptocurrencies that get controlled may not be so strict.
Who knows what their fears are about Bitcoin, they are trying hard on a CBDC that I don't believe will be completely successful.

Saylor said Bitcoin is a lifeline by attaching this image. ^{[ 1 ]}

Each country has not approved cryptocurrencies in their country for different reasons. The government of some countries may not want the people of their country to keep money in crypto currency instead of keeping money in the bank, while the government of some country may think that more criminal acts may be committed through crypto currency and to prevent that crime, the government of some country does not allow Bitcoin in their country. And the governments of those countries whose economic conditions are economic class do not want their countries to be transacted through bitcoin or cryptocurrencies because they may think that if their countries allow bitcoin or cryptocurrencies they will not be able to maintain their economic conditions.

Because with cryptocurrency, government tyranny is completely non-enforceable (unless you live in North Korea.). If people want to own cryptocurrency (especially Bitcoin) instead of the endlessly printed fiat, then fiat will become even more worthless than it currently is. Say what you want about about Bitcoin, but the governments lack of regulatory power over it is exactly why it is worth so much. Its value is a true reflection of that. Another reflection would be the governments continued failings at trying to regulate it.

After all these years you would think they would give up. But they created the CBDC instead. Lol.

Bitcoin is freedom. Not all countries want that.

Since some countries see crypto as a thread to there local currency, they tend to block the advancement of cryptocurrency in there region so that people would not consider Bitcoin as a good options to trade and make transactions making the local currency less worth using for transactions. Sometimes, this may not be the case, if the government find out that Bitcoin could pose a threat to there economy they would want to look for any means to block there advancement of Bitcoin in there regions. China had ban Bitcoin many times and unban it too for reasons best know to tye government..

bitcoin and cryptocurrencies are still considered by the majority of governments in many countries as tools that are often used by criminals to transact and launder their money, which imo is a stupid thing that is difficult for governments to eliminate even though fiat money has always been a tool criminal transactions during this time.  Bitcoin was created to improve the world's financial system and to protect the value of investment assets owned by investors, throughout the world support for Bitcoin will continue to make Bitcoin exist, there will be no reason for Bitcoin to return to zero or die, its value will always be there, even though all world governments hate bitcoin.

Have you considered understanding the full context of these nations' decisions any thought? It is not as simple as it seems.

Countries might be concerned about possible instability in addition to their dread of decentralization. Its simple to say its about control, but its also about keeping their financial systems in order. Is big brother really the only thing watching? Isnt that a heated debate? You're true; major participants in the challenges you highlighted also include the US dollar and other businesses. You have a point, but what about the bigger picture? It has several layers and is intricate.

Don't forget that what good for Mr A may not good for Mr B for different reasons OP. I think those countries that made BTC legal are those countries who their representative are well educated and they know what decentralized currency can do to improve their economy and also reduce unemployment in the land, if they make it legal. BTC and cryptocurrency was legal in my country that made many youths to gain more opportunities to created many jobs and businesses in the country, but kidnappers were no longer collecting fiat money from victims because they will be trace by the force men in the country that made them to start demanding for cryptocurrency or BTC for ransom so that nobody can trace were the money enter that made our governor of the central bank to banned cryptocurrency and BTC in the country. There is a hope for my country because, our new president is a someone that is well educated and he cherish decentralized currency so much which are some of the signs that made us to believe that decentralized currency will soon be legal again in our country.

There seem to be multiple reasons behind it. Governments dont want to have a parallel financial system which may put in danger their said banking system. Having encrypted wallet addresses, governments can not track the transactions and thus loosing the tax amount which could be a huge addition to the reserve banks. This also encourages money laundering which no government wants to attract.
Having said so, governments are not able to control the engagements of the people in in cryptocurrencies, they feel the easiest way is to ban or at least not to legalize.
I believe, soon many countries can impose some regulations to adopt cryptocurrencies because it can not ignore the possibilities and developments through blockchain technology.

Crypto has it's advantages and it's disadvantages. It's volatility  and decentralization are setbacks,  but I don't think that's all the reasons for its ban.

Now in some countries like Qatar, it's been termed as "illegal" and banned cause, it's pseudonymity makes it easy to be used for illegal activities e.g. funding terrorism, and money laundering, and they have strict laws against it to prevent these crimes.

Meanwhile, some other countries like China see Bitcoin as a threat to its security, political power, national currency, and sovereignty from foreign affairs. They don't want any alternative currency that would undermine their economic stability and monetary policies.

Others consider it to be against their religion and moral values. Such countries are usually Islamic ones as they believe that it is prohibited to use any currency that isn't backed up by assets such as gold silver...

Insecurity from a government that the citizens will stop using their product (shitty banks) and instead using bitcoin, so instead of making their product better, they doing some communism at is best and make the better product illegal. Shameless and lazy.
as simple as that.

I don't think bitcoin's volatility is a reason for governments to ban bitcoin and worry about people there suffering losses, because bitcoin is not a uniquely volatile asset. Any financial market that has fluctuations and losses is part of the financial market. Many people fall into poverty, lose their homes, and even commit suicide when investing in losses in the stock market, so why not ban it? I agree with most of the comments here, the government banned bitcoin simply because it's decentralized and they can't control it.

But more and more countries are accepting bitcoin as governments realize that bans don't work and cost them tax revenue. So they legalized it with a series of regulations to tax people more conveniently.

Cryptos are mainly not legal in many countries because it’s decentralised nature doesn’t allow the government to control the coins. Due to the decentralised nature, no government or ruling body can know how many Bitcoins a person is holding. As they cannot control the cryptocurrencies, hence they cannot impose tax on it. This is the primary reason for which Bitcoins or cryptocurrencies are not legal in many countries.

I think there is only one reason why some governments ban bitcoin, and that is because it is decentralized, so they cannot control it. In addition, reasons such as money laundering, criminals taking advantage of it to circumvent the law, and polluting the environment...are all just bullshit reasons because they don't dare to declare to everyone that they can't control it.

The government is a completely centralized system and their power comes from that, if people switch to using a decentralized system, they will gradually lose power, even collapse. Therefore, it is very normal for them to be afraid of bitcoin.

There were always scammers, long time before Bitcoin. It's not the reason governments making it illegal, it's just an excuse.

Why blaming the government always, for the fact that bitcoin has become more valuable in our society today we should be aware of scammers.
   And because of the value of bitcoin scammers has crip into bitcoin, people now see bitcoin as a scam, people now passing the wrong information about bitcoin, stories like I invested my money on this platform and have not seen my money.
Coming to the government, the government see the value of bitcoin as not trust worthy as the value of bitcoin remains changing.
Lastly everyone has been contributing this last one, the government does not want you to be in full control of your money while bitcoin allows you to be the owner of your money.

The actual reason for some countries to explicitly outlaw Bitcoin is their fear to citizens having the power to manage their finances in a decentralized way, without the intervention of the state.

It is not a coincidence two of the most authoritarian countries: China and Russia have both declared their hostility towards Bitcoin and other decentralized assets, because they want their people to depend on the big brother, it seems.

The money laundering and ecological talking points do not convince me, since the US dollar is still the asset preferred by criminals and there are other industries on this planet which are more harmful to environment than BTC is.

Reasons could be generic here, we can say it could be because of the common problem of using cryptocurrency, like lack of regulation and money laundering or terrorism financing, or another country just wants to protect their people because we all know scams and frauds using cryptocurrency is very high.

Cause they either see it as a money-laundering machine, a tax evasion mechanism for people who don't want to pay taxes, or just flat out misinformation (e.g. Bitcoin is a ponzi scheme yadda yadda).

the US has seen crypto as the latter, and for good reason, no thanks to SBF, Do Kwon, and a buncha other stupid mofos who see crypto as nothing but a cash cow they can milk without anybody suspecting them. And even though this was the case you can't really say that they are in the right either, there's much to unpack about crypto than just "it's a fucking scam" or whatever is going on in their heads these days, so we can't really just take the hits. I say we let them for now, it's bear season anyway and we'd not have much energy to battle these misinformation, let's take a stand and do something about it when the market's looking a little more sunny, and watch as these freakazoids flock upon bitcoin like it's the last hotdog stand in town.

The problem will not be too far away with the bitcoin system that uses decentralization as their reference which of course this will make many people who may become uncontrolled by the government, especially in terms of their finances, therefore in order to minimize this concern there will definitely be several regulations implemented, the last of which is definitely a ban.
The conflicting visions of bitcoin and the desire for full government control in centralization so that the presence of bitcoin can disturb those who make legalization sure to happen but for now and maybe for the future I think more and more countries will adopt bitcoin and not legalize bitcoin in their territory.

Governments want your money to be moved through those institutions, because those institutions are obligated to share data with the government. Bitcoin is a threat to authoritarian regimes, because they can't control it like they can control centralized payment systems.

some government just need to be educated on this market, so they won't be very strict about it. i can understand at the early stages of introduction of this market. however, there are so many materials now that they can read and refer to what this market is all about. i guess, one major reason for them is indeed they have no control on what's happening in this market. however, if they will educate themselves as well as their people, they can surely get something out of this market, rather than sending all the money to the black market.

That's true because this is basically the major reason and excuse most government have used to actually try to restrict their citizens from gambling and that's why majority of these countries have ban crypto because if the inability of them of to actually trace and follow up with the movement of money flow but same fit can also be achieved if well plan with the fiat currency too.

Although many countries will later see bitcoin from a more better perspective than a currency for illegal activities. Only time will tell and I strongly believe that this notion will be changed.

It's just simply because government cannot control Bitcoin. They are afraid that if people starts to use Bitcoin, it will lead to the downfall of their economy of their country. But it's just their thinking because of the fact that they can't control and they didn't know exactly what it is. Aside from that, they might afraid of the idea that criminals can use Bitcoin so that they can still live without exposing themselves by working in the outside which can be difficult to track.

Countries who banned Bitcoin didn't really know the worth of Bitcoin, and how it help to boost the economy of the country. Using Bitcoin is a fast transactions, so it will be lessened the time cost especially if you have to pay something far in your place. And also, Bitcoin is made for people who didn't want to hide their identity from scammers and criminals because honestly, if someone notices you have a lot of money your life will put in a risky situation where you can't go somewhere alone.

Hey, I saw the first line of your statement came here:

https://www.investopedia.com/articles/forex/041515/countries-where-bitcoin-legal-illegal.asp#:~:text=While%20Bitcoin%20is%20welcomed%20in,%2C%20money%20laundering%2C%20and%20terrorism.

Is that your website or article?

Anyways, different countries have different approaches to cryptocurrency. If you want to know the details specifically, you can search the specific country by hitting your preferred search engine added with the keyword "why the cryptocurrency is banned in..".

There are more than 200 countries in the world and every country have different laws. Every country have a different way of looking at things. We can explain this for many reasons such as culture, level of development, socio-economic order, political power, etc.
The sovereign power of the state is to print money. The state doesn't want forces outside itself to dominate money. Bitcoin is a money they can't control, so it's only natural that they take a hard line against it. States don't like anything they can't control, but when they learn to take advantage of it they will look at it differently. It's only a matter of time.

There are several factors that might influence it.
Like the volatility that you have explained. Under the pretext that they want to protect their citizens from various losses resulting from the volatility that exists in Bitcoin.

Not only that, the many negative issues about Bitcoin are also a reason for those who don't like implementing illegal regulations in their country. In this case, governments (although perhaps not all, but most) agree and consider that Bitcoin has more negative impacts than positive. They may think that Bitcoin or cryptocurrency is not real, has no backup, and cannot be held. Not only that, there is no guarantee that the price will continue like that. This is the purpose of their protection of their citizens.

Apart from that, there may also be other negative issues, namely that Bitcoin is decentralized so the government cannot control it.

However, behind that reason, there are already many citizens who have been helped thanks to Bitcoin and are able to continue their lives well with Bitcoin. Because after all, as long as we can optimize the positive side of Bitcoin then it will be very profitable for everyone.

What I quoted from your writing is among the real reasons behind making cryptocurrencies illegal in some countries and banned in their laws; these cryptocurrency transactions are made through a decentralized system without the intervention of central banks and governments, and because of the price fluctuations and risks investors face.

It is worth noting that although some countries have banned it, many countries have made it legal and made it the official currency of the country, and many Arab countries have taken the lead in adopting Bitcoin and cryptocurrencies, such as the UAE, What I see is that it is a matter of time and some of these countries that have not yet made bitcoin legal will turn to digital transformation and all financial transactions, government services, and taxes will be through crypto after dealing with it is legalized.

Bitcoin and decentralization have a lot of solutions that have eliminated banking hurdles and wasted people's valuable time with slow banking transactions and strict procedures. In addition, it is also an area for investment and improving living conditions. These countries can benefit from the cryptocurrency sector, which includes major companies and platforms for investment in these countries.

Because they want to be able to control people's money, another factor is that because fiat will be more useful to the state than bitcoin they can regulate everything.

Well the government's concern about bitcoin is because: Volatility, fluctuations, can still be manipulated by the pope, range to money laundering, often committed crimes including hackers maybe that's a factor where the state thinks.
Fully not only that but the government cannot control if it adopts bitcoin full history, the state will also think about the economic impact if its citizens become financially independent because of using bitcoin.

So now it is still very rare for bitcoin as legal tender except for a few countries, but other countries still prohibit it and only for investment assets.

It would be easier to read if you tabulated the list of reasons why cryptocurrency is illegal in some countries.  I believe despite these reasons, the major one is that the government cannot control the network of cryptocurrency specifically Bitcoin.  They, the government,  don't want to engage in something that they have no control over.  Until they have formulated proper regulations for cryptocurrency,  I think they will maintain the restriction of cryptocurrency in their country.

Yes you are right, even though several countries have banned or making cryptocurrencies an illegal activities, in reality there are still many citizens or residents of countries that prohibit cryptocurrencies who use transactions with cryptocurrencies and have several assets in cryptocurrencies.

In fact, there are many reasons put forward by governments in various countries to reject or prohibit cryptocurrencies in their respective countries. But in my opinion the source, root cause or main reason for all these bans is because the government cannot or does not have full control and control over the distribution, use and value of crypto assets themselves because of their decentralized nature.
Because they cannot control it completely, this raises several concerns about the misuse of cryptocurrency for illegal activities such as money laundering, funding for acts of terrorism, can't tax it and other misuse of cryptocurrency that can harm or collapse the economic and banking system in force in their country.

To buttress this point, am sure you are aware Cryptocurrency is used in purchasing some products, like Elon Musks' Tesla,  wherein you can buy using crypto, but he stopped the use of cryptocurrency in purchase of his Tesla's.
Although recently he was interviewed on when he would allow his Tesla company resume the acceptance of Crypto for purchase of Tesla, it is rather evident that even in countries where crypto currency is not used as legal tender, it might be accepted by some businesses for purchase of their products or for services they render, based on if you are a special customer of course.

It is already clear to some people that already knows little about bitcoin and those who already know much about Bitcoin, as Bitcoin is decentralized that can not be controlled by anyone even the governments and their powers that is why Bitcoin isn't legal in those countries.
But other countries that Bitcoin is legal, although Bitcoin is illegal in some countries but that doesn't stop some of the citizens from the country to make good use of it.

It’s interesting to note that some countries have banned bitcoin but consider other cryptocurrencies as legal entities. This tells me that the government is not scared of digital currencies, they are only worried about decentralized currencies like bitcoin. Governments around the word want total control over the people, and anything that disrupts that system is considered unlawful. I feel sorry people who still believe the government is honest and right about their position on bitcoin and cryptocurrencies, they will never learn until they own nothing and still be happy.

The reasons are well known to the authorities of those countries. And the reasons you gave are not really the main reasons if I may say. But what I can give as the reasons of this ban of bitcoin in those countries might be the authorities are out of control of the technology, and it is also new to the world system so they are still on the observation process. They want to know if really what they are saying is correct. And they can't tax the citizens of using bitcoin because it decentralized and it uses p2p. And they can only tax CEX and not the individual users of bitcoin. And if a country adopt bitcoin as a legal tender, the way I look at it, the uses of the Fiat currency will drastically reduce though just an assumption.

We have discussed about this so many times on the forum, goverments can make any policy they want to, even if it does not make sense to us, the countries that are hostile to BTC say they do so because they want to protect their citizens from losing money through BTC, according to them BTC is unregulated and scammers can easily scam people and take away their money. Another reason they are unfriendly to BTC is because they say BTC is used for money laundering, but they forget BTC has a transparent blockchain that makes it hard for the bad guys to use it for money laundering, and they will prefer to use cash or fiat. In my honest opinion, enough of threads discussing what governments think about BTC.

Bitcoin is illegal in some countries, and there are several reasons for this. The use of Bitcoin is not illegal in most countries, but the countries that have declared it illegal do so for several reasons. The most prominent of the reasons that are often mentioned by the governments of the countries is decentralization. In addition to this, volatility has also been said to be the reason for Bitcoin being illegal. Taking this as a topic, many countries have declared Bitcoin illegal. And the most tangible evidence is presented as decentralized. And although no country wants its financial activities to be controlled, Do anything without governance or without its monitoring.

So, in my opinion, all these reasons that have been presented by different countries are all lame excuses for these countries for declaring Bitcoin illegal. The banks of these countries don't want to abandon our system and introduce a decentralized system in which everyone gets financial freedom.

Cryptocurrency is decentralized thus it becomes absolutely difficult for many countries to regulate it therefore there isn't any other option than to ban it by those country, the fact that some wicked people adopted cryptocurrency for money laundering for terrorist is another setback for adoption of cryptocurrency in majority of countries who had banned cryptocurrency though even before cryptos a lot of money laundering took place however it becomes imperative for most countries to checkmate and monitor all financial transactions involving crypto which is most often very difficult to track thus it was tagged as illegal.

They, governments, simply feel threats from Bitcoin and cryptocurrencies so they are fearful about future of their fiat currencies, CBDCs. Consequently, they have to react harshly with restrictions, bans against Bitcoin and cryptocurrencies with hope that those harsh reactions and policies can help their fiat currencies and CBDCs won't lose main roles in financial, monetary flows in their nations.

They don't forget about advantages and disadvantages of Bitcoin and cryptocurrencies for their citizens as well as side effects to their central bank systems. Because they are clearly aware about it, they do responses that they think appropriately for their systems, not for sake of their citizens' benefits.

Although there are a lot of reasons as to why cryptocurrency is illegal in some countries, perhaps one that we are often forgetting is the reality that crypto is being used for cases of money laundering. Hence, we cannot blame some government for making it illegal to transact with cryptocurrency, maybe there have been too many of a case that they have to take legal actions regarding it. Although I know many of the replies have stated criminal act which this reason falls, I'm just static the specific.

Common denominator why government ban crypto is due to its decentralized feature. Not all government has the power to regulate all their citizen to pay their crypto taxes voluntarily since it’s a lot of unless your country is like US which has very strict IRS that can track all your transactions even crypto.

I’m from a 3rd world country which government doesn’t have enough man power to regulate taxes individually. Country that ban crypto hates the idea of being decentralized and they want their own fiat money to be use since they have unlimited supply of it.

What is Crypto Currency or Bitcoin? This is a decentralized system through which people can make p2p transactions. And it maintains privacy very nicely. As a result, there are many countries governments in the world, they will not be able to properly collect the additional tax imposed on the people.
Moreover, the heads of state of the countries may have a misconception that these will only have a negative impact in our country, but in fact, their positive aspects are much more. Moreover, if these systems are implemented, many countries have dishonest leaders and dishonest businessmen, both of them will lose out on the illegal money they earn from the people. There can be many such reasons for declaring cryptocurrency or bitcoin illegal in countries.

You have less clue about crypto and I don't blame you because it seems you are knew, why making up your mind with this opinion of yours instead of you trying to gain some knowledge first?

Volatility isn't one of the reasons why any country put ban on Bitcoin, volatility headache belongs between Bitcoin and it's adopters, not a country, if they can put ban on Bitcoin it shows they aren't investors.

Criminal that want to finance their activities using Bitcoin or the blockchain should proceed and let's see how that ends, stop saying what you don't know, you will never gain any knowledge like this, every transaction using Bitcoin can be traced, it's transparent on the blockchain, a smart criminal will rather use Fiat instead of Bitcoin.

Yes, nations that want to outlaw something usually use criminal activity and instability as justifications. People always forget to talk about how cryptocurrencies, like Bitcoin, give people power by making it easy to send money without banks taking a cut. A spike in prices? Another bad guy that steals the worth of your money without you even noticing. Bitcoin, on the other hand, act like heroes and protect us from the teeth of inflation. While traditional currencies print, devalue, and inflate, bitcoin have a 'no more' cap that controls inflation. The globe laments energy consumption and instability, but they overlook the independence, self-sufficiency, and inflation hedge that cryptocurrency affords. It never talks about the good things, only the bad. This is a one-sided, biased discussion that is rife with hypocrisy and lack of vision 

For me, I will say that Bitcoin is considered illegal in all these countries, due to the fact that the government and central bank in all those nations wants to remain in charge over the citizen's finance, since if Bitcoin is given a welcome hand, they know many will choose to invest in Bitcoin rather than the old traditional banking system where they always have control and access over a large amount of the public fund, use it for forex trading, make huge profits and then leave the depositor with the exact capital year after year with no interest, whereas, they keep on making millions out of it, and I don't think they are ready for any change, but stick to their traditional means of banking which profit they the lawmakers the most.

Countries make everything illegal that they can't control or tax on. Actually, countries are an abstract concept. Behind any such prohibitive laws there are specific individuals who act in their own interests.

The reasons cited by countries should not be taken seriously or literally. This is just rubbish for the mass listeners of such rubbish. They always voice plausible pretexts, but the purpose of such restrictions is to control the financial flows of their citizens, which is impossible if people use the bitcoin p2p.

Our government is afraid that cryptocurrencies could be used for criminal activities including money laundering, tax evasion, and fraud. This is the fundamental reason for the lack of regulation in our country. They might prohibit or limit cryptocurrency use until they can put in place the necessary rules to reduce these dangers.

Because their governments want it. As simple as that! Legality depends on the laws and the government controls the law in their country. Some progressive governments made it legal and some old-school governments are either still debating about legality or have banned it.

Regardless about what benefits bitcoin brings in, it's legality will always depend on the government and no one else gets to decide.

The only reason governments ban cryptocurrencies, specifically targeting bitcoin, is because they cannot control it, they fear their power will be threatened if bitcoin becomes widely used. But they don't dare to say that directly to their people, and they find all kinds of nonsense reasons like you are mentioning to ban bitcoin and keep people away from it. But they seem to be gradually failing because as you also said, many governments have accepted and many governments have not accepted. In my opinion, over time all governments will also accept it because they cannot stop it.

I think not in some countries but almost all countries do not support bitcoin,
sometimes one country's reasons are also unclear when it comes to legal and illegal for bitcoin
but the main reason every country rejects btc is that they don't want to let their citizens use Bitcoin to avoid taxes for security/investments and wealth owned

Bitcoin is volatile and this is one of the core reasons why we can earn from it because it renders us the opportunity to make profits each time the price rises and those that Invested take this advantage in it, initially, the government thought about it that when the market dumps and people are loosing their asset values, it's take away their money and such is nothing more different from a ponzi scheme, they also believed that scammers are the ones that uses this digital currency to do evil acts, but now bitcoin is being recognized allover and people are accepting it as a digital currency even though many countries are yet to adopt it use as a legal tender.

Crypto trading and investing appears to be legal in most countries around the world, but most have yet to legalize crypto as currency or legal tender. I don't completely agree with some of the reasons often cited by governments for banning crypto as a means of payment, but governments have every right to regulate what is best for their own countries and financial systems.

It will take a long time to study the positive and negative impacts of adopting crypto as legal tender if a country wants to adopt it. The government needs to learn from other countries that have adopted it first, but adopting crypto as a legal means of payment is not mandatory for every country. In fact, governments can still earn revenue by not legalizing crypto as legal tender, but they legalize trading and investment which allows them to regulate it with taxes.

The government will make illegal all forms that are not real and that they consider to be detrimental to the country. That is one of the characteristics of the government in almost all countries, Bitcoin cannot be touched and cannot be controlled, the other reason is just the government's hallucinations against the people. that's the logical reason.

I am 100% sure, if Bitcoin could be controlled and touched, since Bitcoin first appeared it would have been legislated, maybe we would have seen the government's reasons for illegal crypto, However, for the reasons of full control that the government expects, if that is not possible they will not want to recognize Bitcoin legally, despite the fact that they use Bitcoin as a basis for investment and trading, transactions and so on.

The government is cunning, if it's not profitable for them, anything can be illegal until they find a profit point for them, otherwise they will make Bitcoin illegal in their country forever, but in fact Bitcoin is growing rapidly in the country where it is illegal.

To put it simply, a product with the name of decentralization is being used by a user who is a customer of centralized services. I think it's still a matter of harmonizing users when we will create enough reasons for ourselves to believe that crypto harmful, but the issue of legal coercion I don't see really being too influential at the level of countries that want to optimize their power.

The way fiat can not be used to evade tax, bitcoin as well can not be used to evade tax. But in reality, some people are evading tax with fiat, which can make something like that possible with bitcoin. Bitcoin is having a transparent blockchain which is enough to serve the purpose of tracing tax evasion. What I think is the reason few countries ban bitcoin is because the government in such countries, which ban bitcoin wants to have full control over the financial system in the country.

This is by just simply knowing that Bitcoin is decentralized, which can't be controlled by the government. If you see the people in your country much prefer digital currency which is Bitcoin than the country's own fiat currency, what do you think would be the impact to the economy? Of course it would affect the value of their own currency which eventually drop the economic status of the country. This reason why some of the country doesn't welcome and acknowledge Bitcoin cause of the risk, but some legalized it not only that it's actually convenient to do transaction globally, but the fact that they know the Bitcoin once converted to fiat, would eventually circulate to the market which could be a great news for the country.

Well, countries wan to stay in control of their people.
How do you keep you people in check? Being in control of their finances.

Money rules the world and also controls it. Crypto give people more financial freedom. They don't have to be dependant on local currency. They can send and receive money through crypto without local governments getting to control it.

Some counties are scared of this freedom so the easiest way to prevent it is just to ban. It's a sad reality.

Hi,
I see that you’re new here and I feel duty bound to inform you that, spamming is not allowed on the forum and this is what spam comments or posts look like. Kindly avoid such practices as, it wouldn’t portray you in a positive way. Other than saying, ‘this is true’ and that be all, you could just pass or maybe say something about what you’re seeing, perhaps how is this true and any other opinion on the course.

With respect to OP, one main reason why cryptos isn’t adorn by most is, the idea of decentralization. Government and governance is an organized body where power is centralized. Bitcoin conveys the idea of giving power back to the people and this isn’t an idea that the government ready want to accept. The only time power is given to the people is in the pools (elections). Still, the integrity of choices is still jeopardized.

Government continues to view Bitcoin as an anti to fiat and with fiat being its product, it’s hard to expect there ease corporation.

You can ask the president of those countries, not users in this forum.

Since I'm not one of the president in those countries, my assumption is centralized entity don't want to let their citizen to use Bitcoin to evade tax or safe/invest that related to centralization e.g. fiat, stock, gold, real estate.

In many countries, it isn't illegal, however the countries that have made it illegal do so for many reasons, volatility is one of the most often cited reasons, as is energy use, concerns over destabilization, or the ease with which criminals' activities can be financed and conducted using them. Forgetting the advantage of cryptocurrency which has over the years gained popularity amongst investors globally. With technological involvement and industrialization, digital currencies are obtaining a satisfactory position over others, for example, bitcoin. By using cryptocurrency it is easy to transfer money without any involvement of banks and other financial l institutions. Inflation protection, due to inflation the value of so many currencies drops with this many people see cryptocurrency as offering protection against inflation. Bitcoin has a hard cap on the whole number of coins that will ever be minted.