Topic: why some country banned bitcoin? - page 57. (Read 10262 times)

Each country has different reasons, but the exact reason why they are banning bitcoins is economic, social, and political

i think their government doesn't look bitcoin as a new way to make money for their citizen and only thinking that bitcoin will be like a threat for their economy. because their citizen which is using bitcoin is not paying the tax at all when they use bitcoin except when they sell their bitcoin and send the money to their bank account. maybe they are afraid that if many more people trying to use bitcoin, their fiat can be affect with the bitcoin price and will make the economy of the country will disturbed. but i think the government for each country need to learn about bitcoin and blockchain technology so they can realize that bitcoin is a new hope to their citizen to make money when money is their problem.

International in terms of bitcoin can only mean that countries can adopt and use it. But it does not mean that it is accepted around the world. At the end of the day, it only depends on the particular country whether to accept it or ban it and label it as illegal. I think those countries that banned bitcoin are not convinced of its real-life use.

Yes Bitcoin is banned in many countries. Like my country is banned. Bitcoin is banned in my country because Bitcoin is free. It can not control any country. So my country also. My country's government thinks Bitcoin will have a bad effect on the economy if everyone uses the country. And they also think that if you use it, the country's currency will be trafficked abroad. People will do illegal work. But I do not think that will happen. Bitcoin will reduce the unemployment of a country. A country will improve a lot.

I think that in countries where bitcoin is banned, they may think that due to the use of bitcoin, the value of their country can be reduced. It can be seen internationally, the value of their country will decrease. Bitcoin banned in those countries.

I think the main reason behind some countries banning bitcoin is maybe they think BTC is not secured Properly and one of the main reason is Decentralized transaction. Maybe i said maybe they don't know that much about bitcoins, that's why they are banning them, or maybe they feel insecure to use them.

The main reason for this ban is it's really really difficult to control Bitcoin. Bitcoin transaction is anonymous so it's nearly impossible to find out the owner of any transaction. Beside countries banned Bitcoin because their technology still not developed enough to control Bitcoin and its disadvantages to prevent crime take advantage of Bitcoin to commit guilty like tax evasion, drug trafficking.

Reasons why run the gamut, from fear and ignorance, to protectionism of their national currency, to building a new currency in bitcoin’s image. The list, in general, is not much above ten, but that is subject to change, as many countries have not made an official decision for or against bitcoin. Some are banned by the country’s Central Banking system, some are banned by the nation’s government, and in many countries the Central Bank and national government act as one and the same. These are the Top 10 bannings of bitcoin, via official statement banning the currency nationally, or in practice.

Bangladesh
In a statement the Central Bank of Bangladesh cited concerns over bitcoin’s lack of “a central payment system” which could lead to people being “financially harmed”. It invoked the provisions of the Foreign Currency Control Act of 1947 and the Money Laundering Control Act of 2012. Then, added that trading in bitcoin and other digital currencies could lead to a punishment of up to 12 years in prison.
“Bitcoin is not a legal tender of any country. Any transaction through Bitcoin or any other crypto-currency is a punishable offense,” the bank said in an official statement last September.
The ban comes as an enforcement of sections 4,5 and 8 of the 1947 law that regulate trading in foreign currency without authorization or general permission from the central bank. Section 5 severely restricts payments did outside Bangladesh, which affect bitcoin payments.

Bolivia
The central bank of Bolivia, El Banco Central de Bolivia said in a statement:
“It is illegal to use any currency that is not issued and controlled by a government or an authorized entity.”

China
It is a common misconception that bitcoin and digital currency are totally banned and illegal in China, but China has become the world’s largest bitcoin trading market. The bitcoin ban is strictly on banks, as the central banking authority, The People’s Bank of China is owned 70% by the Chinese government. Banking institutions and employees are banned from engaging in bitcoin business through banking, as well as servicing or doing business with the bitcoin industry. Trading or mining in bitcoin is not illegal for common citizens.

Ecuador
The ban by Ecuador makes the most sense of any ban, as they are building a national electronic cash system, so they feel the need to protect their new currency from something clearly superior. A decentralized currency of finite production that cannot be manipulated by governments or banks might dim the lights on their new program in the eyes of the public, which offers none of those benefits.

Iceland
As of March 19, 2014 the Central Bank of Iceland issued a statement explaining the legal status of digital currency in Iceland. Purchasing them may violate the Icelandic Foreign Exchange Act, which specifies that Icelandic currency cannot leave the country. A nebulous designation, but it sounds like it is banned, in effect.

India
BTCXIndia was the first bitcoin exchange designed and built in India. While following KYC and AML guidelines, and allowing instant INR (Indian rupee) deposits and withdrawals, BTCXIndia was forced to close by their bank, which no longer services bitcoin businesses. The reasons are unknown, whether it is based on a perceived risk or just a simple ban by management, but the issue is widespread in India.
“We have today been informed by our bank that they will no longer serve bitcoin businesses,” the notice stated. “We have investigated the possibility to operate through other banks, but it seems this is a general policy in India as of today.”

Russia
Even with the recent legal victory in Ural recently, setting a legal precedent to lift the banning of websites related to bitcoin and other digital currencies, bitcoin is banned in practice, if not officially legal yet. With the Russian ruble rebounding, but still down over 30% from January 2014, banks and the national government aren’t looking kindly on those who are investing in other currencies, digital or not.
Gold purchases are frowned upon in Russia, so proceed with caution.

Sweden
Bitcoin has suffered a small banning in the buying and selling of scrap metal and “waste products”. This sets a bad precedent of government interference for the future, but so far the ban is restricted to this industry by all accounts.

Thailand
According to news reports, the Bank of Thailand ruled bitcoin illegal on July 29, 2013. However, it appears “it issued a preliminary ruling that using bitcoins  was illegal because of a lack of existing laws” in the case of a currency exchange license application by Bitcoin Co. Ltd.
Bitcoin businesses have been able to conduct business and get licensing, but the ban technically is still there, if not in practice currently.

Vietnam
Back in February of 2014, Vietnam banned the virtual currency bitcoin for use by credit institutions, citing its ease of use for criminal purposes and its high risk for investors.
“Transaction by bitcoin is highly anonymous so bitcoin can become a tool for crimes like money laundering, drug trafficking, tax evasion, illegal payment,” the central bank said in a statement
While not officially banned for personal use but discouraged. This seems to be the most common thread in nation-states throughout the world. Trust the central bank’s currency and do not trust algorithmic currency. If you trust your country’s central bank to look after your economic interests, you’re golden. If not, at least you have a choice. Your central bank’s national currency, or the world’s first global, decentralized, mathematical currency.

Of course each countries has different opinions on using of bitcoin, and also the government of each countries will consider the impact of using bitcoin on its country, whether it will be harmful or not. For countries that banned bitcoin, surely it's certain because worries about the adverse impacts that will occur or that could affect to its country such as affecting the impact on the regular currency, tax implications, potential fraud, criminal acts, etc.

Let's consider a hypothetical case where you will to be part of the government or better of the Central Bank of the country, Why would you resort the prohibition of a currency which It goes against the economic policies that applied in your country? It Disincentiving both the inflow of capital flows into the country and at the same time the increase in GDP

No one can control bitcoin even the government. They cannot put a tax on it that so they can't benefit it and of course they're afraid that it might be used in illegal activities.

Hey, I think there are some places where buying or using Bitcoin is illegal

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there are many reasons why a country can ban bitcoin, beforehand if we are honest and acknowledge that bitcoin actually makes progress toward a country's economy, but one of the reasons why a country forbids bitcoin is because bitcoin provides an opportunity for criminals to commit crimes.

Some country's banned bitcoin because it is uncontrollable, this is also against their law since this may be the roots of crime such as money laundering and illegal tradings, Since it is uncontrollable gov't could't find taxes to all user's. And until now developer's keep working to find counter measures about bitcoins.

I've read some article why china forbids bitcoin exchanges because bitcoin can not be controlled and self-government does not like it. maybe because the government or the country does not benefit.

Because the country still don't believe about bitcoin, and they can't control bitcoin also.
For bitcoin user they can't track the real user.

O think bitcoin is being banned by most of the countries as because they fear that they moght ot be able to tax or regulate it and some evil or other groups might ise it as a way to destabilize or fuel their evil empire and I thini that that is a genuine concern.

It just seems that they want full control of the monetary system and bitcoin is ruining that for them.

in my opinion, they fear it will threaten its economy and can not control it, resulting in a loss of control over the money the citizens they lead, because it is difficult to levy taxes from bitcoin, many people are turning their money into bitcoin, because they want to control their own money without any government intervention that could erode their money, with regulations already in place, and perhaps the reason the state forbids bitcoin because they can threaten the country's currency,

when the state forbids bitcoin in use in its territory I think they have their own policies. starting from the belief that bitcoin is a threat and can be misused. maybe many factors that affect it