You might be wondering… where is Bitcoin Illegal? Read further to find out everything you need to know.
Where is Bitcoin illegal?
There are many countries where Bitcoin is legal. However, the following list contains countries that have banned Bitcoin.
- Algeria – The country’s law clearly states that “the purchase, sale, use, and storage of any type of virtual currency is illegal”.
- Egypt – transactions made using Bitcoin are both immoral from a religious standpoint and illegal according to the country’s Islamic legislator.
- Morocco – Morocco also belongs to countries that banned Bitcoin (both holding and transacting with it). In recent times, however, it seems that the country is working towards a law that will allow the use of Bitcoin under certain conditions.
- Bolivia – The Central Bank of Bolivia has banned Bitcoin and all other cryptocurrencies since 2014.
- Ecuador – The government of Ecuador has banned the use of Bitcoin and other cryptocurrencies while introducing a local stablecoin tied to the US dollar.
- Pakistan – Bitcoin and other cryptocurrencies are deemed illegal in Pakistan and banks are not allowed to deal with or assist customers that are facing problems related to cryptocurrency.
- Nepal – The NRB (Nepal Rastra Bank) declared Bitcoin and other cryptocurrencies illegal in 2017.
Which countries have a banking ban on Bitcoin?
The following countries do not allow their residents to buy and/or sell cryptocurrency using their bank accounts.
- Cambodia – following statements made by the country’s legal authorities, using and storing cryptocurrency is not allowed, unless a special license is acquired.
- Bangladesh – according to the National Bank of Bangladesh, everyone that uses, stores or exchanges cryptocurrency will be arrested and face jail time.
- China – The country’s stance towards Bitcoin very contradictory. While the country seems to be pro-blockchain technology and has the largest portion of Bitcoin miners (more than 51%), it is still illegal to use and exchange Bitcoin and other cryptocurrencies.
- Colombia – The Superintendencia Financiera pursued all banks to not work with or provide assistance to anyone that is involved with virtual money exchanges. There is, however, no law in place that restricts the use of Bitcoin and other cryptocurrencies.
- India – In February 2018, the Reserve Bank of India (RBI) imposed a ban on the sale or purchase of Bitcoin and other cryptocurrencies, following the budget speech of Finance minister Arun Jaitley.
- Jordan – The Central Bank of Jordan (CBJ) restricts financial institutions/companies and other payment service companies to exchange cryptocurrencies. However, merchants and small businesses are not prohibited from accepting Bitcoin as a payment method.
- Iran – Iran has informed banks to cut ties with customers that use their accounts to buy and sell cryptocurrencies.
- Taiwan – Buying and selling cryptocurrency is not allowed in Taiwan, as is the use of Bitcoin ATMs.
- Saudi Arabia – The government of Saudi Arabia has banned (implicitly) the usage of bank accounts for cryptocurrency purchases as it finds that the latest is a high-risk investment.
- Canada – As of 2018, both the Bank of Montreal (BMO) and the Toronto Dominion (TD) have imposed a banking ban for anyone participating in cryptocurrency purchases using credit cards or debit cards. Reports tend to be quite vague though, as several banks and financial institutions still allow their customers to buy and sell their cryptocurrency.
Countries where Bitcoin is illegal as a payment tool
Meanwhile, in Vietnam and Indonesia, the use of cryptocurrencies as a form of payment has become illegal.
Find out more here.