These are the countries where crypto is restricted or illegal

The largely unregulated cryptocurrency world has not lessen in controversery since its beginning in 2009. Despite all the bankurptcies, volatilities, nefarious usage, exorbent energy consumption, many still see it as a safe harbour during tougher econonmic times.

Even though more turn to cryptos as an investment or lifeline, its legal status vary substantially from country to country, while in other countries, especially the advanced economies, its relationship is properly defined or consistently developing. Although majority of countries don't make using crypto illegal, its status as a form of payment or commodity varies with different regulatory implications.

Some countries have placed limitations on deposits and withdrawals while others have placed restrictions on the way it can be used. Some have gone as far to ban any use outright with heavy penalties for anyone making crypto transactions.

Here is a list of countries that have a particularly fraught relationship with crypto and other altcoins.

Algeria

Algeria currently prohibits the use of cryptocurrency following the passing of a financial law in 2018 that made it illegal to buy, sell, use or hold virtual currencies.

Bolivia

There is a complete ban in place on the usage of Bitcoin in Bolivia since 2014. The Bolivian Central Bank issued a resolution banning it and any other currency not regulated by a country or economic zone.

China

China has cracked down on cryptocurrencies with increasing intensity throughout 2021. Chinese officials have repeatedly issued warnings to its people to stay clear of the digital asset market and have clamped down hard on mining in the country as well as currency exchanges in China and overseas.

On August 27 2022, Yin Youping, the Deputy Director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC), referred to cryptos as speculative assets and warned people to "protect their pockets".

Efforts to undermine Bitcoin - a decentralised currency outside the control of governments and institutions - are largely seen as an attempt by the Chinese authorities to float their own e-currency.

The PBoC is looking to be one of the first major central banks in the world to launch its own digital currency, and in doing so would be able to more closely monitor the transactions of its people.

On September 24 2022, the PBoC went further and outright banned cryptocurrency transactions in the country.

Following in the wake of the Terra Luna stablecoin crash, Chinese authorities signalled even tighter restrictions on crypto may be in the works.

Colombia

In Colombia, financial institutions are not allowed to facilitate Bitcoin transactions. The Superintendencia Financiera warned financial institutions in 2014 that they may not "protect, invest, broker, or manage virtual money operations".

Indonesia

Bank Indonesia, the country's central bank, issued new regulations banning the use of cryptocurrencies, including Bitcoin, as a means of payment from 1 January 2018.

Ghana

Cryptos are illegal in Ghana but its central bank has expressed an interest in blockchain technology and its potential uses and is accessing how it could be integrated into the country's financial system.

Around 4.5 per cent of the world’s Bitcoin mining takes place in Iran, which, according to blockchain analytics firm Elliptic, could account for revenues of over $1 billion (€843 million).

In order for the crypto industry to flourish, Iran has offered licenced miners cheap energy but requires all mined cryptos to be sold to the Central Bank.

However, unlicensed mining drains more than 2GW from the national grid every day, causing power shortages.

To this end, Iranian authorities issued a four-month ban on Bitcoin mining until September 22 2022.

India

India is becoming increasingly hostile towards cryptocurrencies. On November 23, the government announced its intention to introduce a new bill to the Indian parliament which would establish a new central bank-backed digital currency as well as ban almost all cryptocurrencies.

Earlier in 2021, it had considered criminalising the possession, issuance, mining, trading, and transference of crypto assets. Prime minister Narendra Modi said he wanted to ensure crypto "does not end up in wrong hands, which can spoil our youth".

Kosovo

While the holding or trading of cryptocurrency assets isn't yet prohibited in Kosovo, the government announced a ban on crypto mining in early January, blaming a growing energy crisis. The country, which unilaterally declared its independence in 2008, is facing historic power shortages with scheduled power cuts now being put into place to conserve energy. In a further bid to curb energy wastage, Economy Minister Atrane Rizvanolli announced a long-term ban on crypto mining in the country. Police have been tasked with enforcing the ban as well as pinpointing mining locations throughout the country.

Mexico

North Macedonia

North Macedonia is the only European country so far to have an official ban on cryptocurrencies, such as Bitcoin, Ethereum, and others, in place.

Russia

Russia has a chequered association with cryptocurrency, made all the more complicated by its ongoing invasion of Ukraine.

Russian President Vladimir Putin has repeatedly linked cryptocurrency with criminal activity, calling for closer attention to cross-border crypto transactions in particular.

In July 2022, the prosecutor general announced new proposed legislation which would allow police to confiscate cryptos deemed to be illegally obtained citing its use in bribery.

However, as the world's third largest mining hub according to data from Cambridge University, it's feared that Russia could now embrace crypto and harness its natural resources to exploit Bitcoin mining rather than disparage it.

Turkey

Many in Turkey turned to cryptocurrency as the Turkish lira plummeted in value. With some of the highest levels of use anywhere in the world, the arrival of regulations was swift this year as inflation peaked in April.

On 16 April 2021, the Central Bank of the Republic of Turkey issued a regulation banning the use of cryptocurrencies including Bitcoin, directly or indirectly, to pay for goods and services. The following day, Turkish president Recep Tayyip Erdoğan went further and issued a decree that crypto exchanges to a list of firms subject to anti-money laundering and terrorism financing rules.