The number of countries banning cryptocurrencies has doubled in three years

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2022-01-06 22:41:15

The total number of jurisdictions with absolute bans or severe restrictions on cryptocurrencies has more than doubled in the past three years, and there is little sign that the trend is slowing down.

While 2021 has been a good year for the crypto industry in terms of market performance, the number of jurisdictions banning cryptocurrencies has more than doubled since 2018.

One report of the U.S. Library of Congress (LOC) details nine jurisdictions that currently have an absolute ban on cryptocurrencies and 42 with an implicit ban. This number is up from 8 and 15 respectively in 2018 when the report was first published.

LOC is the research library of the United States Senate, which serves as the national library for the country.

In the context of the LOC report, an absolute ban means that any “trading with or holding cryptocurrencies is an offence”, while an implicit ban prohibits crypto exchanges, banks, and exchanges. customers and other financial institutions that “deal in cryptocurrencies or provide services to individuals/enterprises dealing in cryptocurrencies.”

The nine new jurisdictions with an absolute ban include Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh and China. China’s crypto ban gets the most attention in 2021.

The dramatic increase in jurisdictions banning or regulating cryptocurrencies over the past three years shows no sign of slowing as several governments are now considering their options. In addition to the 51 jurisdictions with crypto bans, 103 have adopted anti-money laundering and countering the financing of terrorism (AML/CFT) laws, a threefold increase from the 33 jurisdictions with laws such as So in 2018.

A Swedish financial watchdog and the Swedish Environmental Protection Agency have called for a ban on Proof of Work (PoW) mining in November due to the electricity demand and environmental costs of keeping the network running. motion. This was met with harsh criticism from Paris-based Melanion Capital, which called the claims against mining “totally disinformation.”

Sweden’s EU neighbor, Estonia, started implementing AML/CFT rules in February. These new rules are expected to change the definition of what a virtual asset service provider (VASP) is and impose an implicit ban on decentralized finance (DeFi) and Bitcoin (BTC).

The Indian government created a scare when lawmakers there considered a crypto ban last year. The results are not an outright ban, but a push to regulate cryptocurrencies as crypto assets, with the Securities and Exchange Board of India (Sebi) which oversees regulations on local crypto exchanges. direction. However, a complete ban is not out of the question.

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