News of new blockchain technology and the development of cryptocurrency systems resonated around the world. From the moment of its creation until today, the goal was to establish a digital financial system that will raise the global economy to a completely new and even higher level. While some countries have welcomed it, for the governments of some other countries it poses a great threat to financial functioning. Each country has its own reasons, and various questions are being asked, ranging from money laundering to terrorist financing. Due to these and many other reasons, the trend of digitalization isn’t well accepted by all countries of the world. So, bitcoin and other cryptocurrencies are still fighting for their place in certain economic settings around the world. Crypto enthusiasts and entrepreneurs need to know which places aren’t recommended for them. The concept of cryptocurrencies is still suspicious to many governments, which is why it hasn’t yet been legalized.
If you really want to trade bitcoins, then you should know where they’re allowed. While in some places there is a certain amount of tolerance for bitcoin where it’s allowed to use it as a means of payment, in others, it can put you right in jail. For now, all that remains is to wait for the reaction of the legal institutions, and until then, it wouldn’t be bad to get acquainted with the countries that are explicitly against the establishment of blockchain technology within the borders of their economy. Well, we could finally get to know each of them.
China is, we can freely say, a synonym for a crypto hostile place. While some companies and businessmen would be very happy to accept the opportunities provided by blockchain technology, the government is committed to not making it happen. Exceptions like Baidu, Alibaba, and Tencent have decided to be guided by their own instincts and have been actively investing in this modern technology for a long time.
There is a ban on bitcoin trading, but until a few years ago, Chinese law didn’t prohibit the possession of bitcoins. In that case, they were protected as personal property. This was used by some hotel chains and they managed to integrate the digital monetary system into their business policy.
As of September 2017, any trade and all other activities related to bitcoin are strictly prohibited.
Another Asian country that is completely hostile to digital banking. Many believe that the problem is in the communist political system that exists here and that doesn’t easily approve of innovations, especially those that give citizens their hands-free and greater control over their own finances than state bodies.
Political scientists believe that this is a real pity for Vietnam, considering the fast-growing economy and high use of the Internet, as well as innovative and advanced young people. On the other hand, a large part of the population doesn’t use traditional financial services and prefers to make transfers through the Western Union, paying high commissions while avoiding bank intermediation. This indicates good ground for bitcoin implementation, only when local institutions wouldn’t be prohibited from doing so as any activity of this kind would mean breaking the law.
Bangladesh is another example where the political organization in the country doesn’t allow the integration of bitcoin. The National Bank opposed this, saying that crypto transactions could jeopardize existing laws banning money laundering and terrorist financing. Universityherald.com talks about how governments support this topic with extensive documentation, wisely bypassing the fact that criminal activities can be carried out with the help of fiat currencies anywhere in the world. Such and similar myths are numerous.
Nonetheless, local websites that dedicate their articles to this current topic emphasize that bitcoin transactions are still conducted to a certain extent. On the other hand, the police are doing their best to enforce the law, but the investigation has turned out to be more complex than it seems. The hunt for traders here still lasts.
Nepal is also a communist country, so the explanation for the hostile attitude towards bitcoin trading is similar to that in Vietnam. The National Bank of Nepal, as the state body representing these issues, states that all activities related to cryptocurrencies are illegal and unacceptable. In their opinion, these transactions could affect the illegal outflow of the Nepalese rupee outside the country’s borders.
A few years ago, a police operation was conducted in which a large number of people who were engaged in bitcoin exchange were arrested and are still in prison today.
Some experts say that you can get into an awkward position in relation to the law if you try to convert bitcoin into any fiat currency. But you must always keep in mind the rule that any exchange of values is considered illegal and punishable.
Thailand is often part of such lists and is treated as hostile to the cryptocurrency system. However, the situation isn’t nearly as problematic and drastic as in the other countries we have mentioned. Two years ago, the National Bank ordered all financial institutions to suspend all transactions related to cryptocurrencies and banned them from that moment.
However, the situation isn’t so worrying. The idea of implementing a cryptosystem will be on the stand by for a while until the government develops legal norms that will regulate this sphere. For now, all dealers and brokers have been ordered to register with the competent authorities, and we have to wait to find out what are the next steps.
Bolivia clearly prohibits the use and trading of any currency that has not been approved by the government and cannot be controlled by the state. In 2017, all those who organized promotional activities for this purpose were arrested, under the assumption of the government that it was an attempt to deceive the local population in order to steal their money.
This could not stop all the people who are in favor of establishing a blockchain system in Bolivia, so they continued their promotion via Facebook and other social networks, but a decision to put an end to that as well was made very soon. A telephone line has been opened for citizens who wanted to report such activities to the police.
The decentralized character of blockchain technology, which prevents states from having control over the fluctuation of digital money, is definitely a major problem for crypto-hater states. As can be noticed, this problem is especially pronounced in Asian countries, which are still fighting against it with all their power and to which communist policy does not allow innovations of this type, so it remains to be seen whether anything will change in the meantime.