Below are The Countries Banned Cryptocurrencies

It is due to the profit that it has earned for people from around the world. It is because of the independence one experiences dealing with cryptocurrency. You don’t have to rely on any centralized organization. You are free to buy, use and sell the cryptocurrency the way you want.

But if you are thinking that it is 100% legal to buy, sell and use the cryptocurrency, you need to reconsider. This is so because some countries are banning cryptocurrencies.

So if you are planning to exchange currency then you must know whether is it legal to exchange currency privately in the UK, US, or any other country where you want to exchange.

But the main point of concern is why countries are banning cryptocurrencies?

Well, let us dig deeper to find the answer.

• Can’t be Monitored or Regulated: One of the biggest reasons for putting a ban on cryptocurrency by some countries is due to the fact that cryptocurrency can’t be monitored or regulated either by the government or by a financial institution. This makes it really difficult to keep control of the financial system of the country.

It attracts people and criminals associated with tax evasion and money-laundering on a huge basis. This completely disturbs the normal system.

When it comes to traditional banking institutions, they are recognized by the government. This means the transactions can be easily tracked. But on the other hand, the transactions related to cryptocurrency take place outside the normal banking system.

So the chances are high that it can be carried out by someone who hasn’t used the bank before. In this case, the tracking of that particular transaction is a matter of concern as it is difficult to track.

• Ability to Break Law: It carries an immense ability to violate laws against money laundering. But the main area of concern is the funding of terrorism. Once it happens on a mass level, it can bring the normal life of people from all over the world under threat.

• No Centralized Database: Cryptocurrency doesn’t have any centralized database. This means in case the digital wallet is lost, there will be a permanent loss of virtual currency. In this case, the people have to suffer a lot, financially.

• Volatility: It is much safer to invest in the stock market than in cryptocurrency. This is so because cryptocurrency like Bitcoin is known for its high volatility. The price differs by a huge margin on a daily, weekly, or monthly basis. This is so because they don’t have any protection assets for a backup. In this case, it carries the power to make or break someone on a financial basis. It can even lead to bankruptcy.

• Religious Reasons: Saudi Arabia has outlawed Bitcoin. The reason for the same was that it is incompatible with Muslim law. Many other Muslim countries from around the world are in favor of this point.

• For own Security: Countries like Iceland forbade Bitcoin to protect itself from getting economically weaker due to huge money leaving the country. This is not the case with Iceland alone but many other countries that are already suffering from a weak economy are in favor of banning all cryptocurrencies. This decision was taken on the simple ground that they can’t have any control over the outsourcing of money.

• A threat to Traditional Banking Institutions: When it comes to cryptocurrency, there is no single authority to regulate the value of cryptocurrency as we have seen in our banks. This can prove to be one of the biggest threats especially when it comes to exchanging regular currency for bitcoins.

Conclusion: 

When it comes to cryptocurrencies, a lot of people from around the world are crazy about them. They are putting every possible effort to learn the best trading strategies for Bitcoin or for some other cryptocurrency. They are utilizing the necessary information in hand to earn maximum profit. But there are many who can’t do much about cryptocurrency. It is due to the ban on cryptocurrencies in some currencies. Now when it comes to banning cryptocurrency different countries are having different concerns. The most common among them are presented to you here.

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