Countries with a total ban on cryptocurrencies. On Aug. 27, Yin Youping, deputy director of the Office for the Protection of Financial Consumer Rights at the People's Bank of China (PBoC), referred to crypto as speculative assets and warned people to protect their pockets. Bitcoin has a complex relationship with the Iranian regime.
To evade the worst impact of crippling economic sanctions, Iran has turned to the lucrative practice of Bitcoin mining to finance imports. For the crypto industry to flourish, Iran has offered licensed miners cheap energy, but demands that all mined cryptocurrencies be sold to the Central Bank. India is becoming increasingly hostile to cryptocurrencies. On Nov.
23, the government announced its intention to submit a new bill to the Indian parliament that would establish a new digital currency backed by the central bank and ban almost all cryptocurrencies. The Central Bank had clarified in its statement that “the Bank of Bangladesh does not approve any virtual currency or cryptocurrency. To avoid possible financial and legal risks, the central bank again instructs all individuals and entities to refrain from transacting in any form of cryptocurrency or virtual currency (such as Bitcoin, Ethereum, Ripple, etc.) Other countries have completely banned the use of Bitcoin and cryptocurrencies with strong penalties for anyone who transacts with cryptocurrencies. Ironically, these countries are already some of the poorest countries in the world, and widespread crackdowns by Bitcoin and cryptocurrencies seem not to bring favorable results to improve the situation.
Bitcoin and other cryptocurrencies are not legal tender and the Malaysian government advises citizens to use them with caution. The Estonian Ministry of Finance has concluded that there are no legal obstacles to using cryptocurrencies similar to bitcoin as a payment method. Lithuania became one of the first countries to have a framework regarding cryptocurrencies and taxes, with profits of up to 2500 euros considered tax-free. The Financial Market Authority (FMA) has warned investors that cryptocurrencies are risky and that the FMA does not supervise or regulate virtual currencies, including bitcoin or cryptocurrency trading platforms.
While the Central Bank prohibits trading of foreign mined cryptocurrencies, it has encouraged Bitcoin mining in the country with incentives. Countries such as France, Denmark, Germany, Japan, Iceland, Spain and Mexico have legalized cryptocurrencies. Despite the many controversies surrounding virtual currencies, prominent Pakistani bloggers and social media influencers are publicly engaged in bitcoin trading and regularly post content on social media in favor of regulating cryptocurrencies. Any entity that manages or exchanges Bitcoin, such as cryptocurrency exchanges and payment processors, falls within the definition of a money services business (MSB).
From the roller coaster ride of Bitcoin, Ethereum, Dogecoin, Shiba Inu, etc., to the NFT rush affecting the whole world, cryptocurrency news has been in the headlines from time to time. Although cryptocurrencies are being investigated for the potential for tax evasion and money laundering, Bitcoin and other cryptocurrencies are not recognized. Keep in mind that, despite prohibitions and restrictions, these laws have not eradicated trading in Bitcoin or other cryptocurrencies and their use. On a positive note, research shows that there are at least 111 states where Bitcoin and cryptocurrencies are recognized by law and are legal.