Cryptocurrencies have taken the internet by storm and have become one of the most popular types of payments on a global level, where even the most casual users are starting to get into the cryptocurrency space.
While cryptocurrencies were at one point in time difficult to get, today, with the introduction of numerous cryptocurrency exchanges and brokerages, this process has been streamlined to the point where anyone can use crypto payments just as their credit card, debit card, or e-wallet just as they would buy groceries in the store for example.
Author: Milko TV
However, while it is simple and easy to buy cryptocurrencies, they are not fully legal in every single country or region in the world. In fact, there are numerous locations where cryptocurrencies are not yet legal, and today, we are going to go over what these countries are so that people who reside within them do not make a mistake and have to potentially struggle due to it. Let’s dive in.
- Cryptocurrency legalization is one of the key points discussed within the crypto community, as there can be a lot of benefits from the process of doing so.
- There are numerous countries where cryptocurrencies have already become legal, and in some cases, even legal tender; however, there are still some countries where they are still illegal.
- We are going to cover all of the countries where cryptocurrencies are illegal to use or legally restricted.
- If you reside in a country where cryptocurrency payments are legal and want to start accepting cryptocurrency payments, you can do so through the utilization of NOWPayments.
Why legalize crypto?
A key reason why cryptocurrencies should be legal is due to the fact that they do not essentially break any serious laws. They are an alternative economy, and users of cryptocurrencies need to be able to exchange goods in alternative ways if they deem fit to do so.
Furthermore, a higher level of crypto regulation means more stability in a notoriously volatile crypto market. Regulation and legalization of cryptocurrencies have the potential to protect long-term investors, prevent fraudulent activity within the crypto sphere and even provide clear guidance that will allow companies to innovate within the crypto economy.
Cryptocurrencies, if they become legal tender as they did in specific countries, can also be used for the payment of taxes, bills, or anything else, which will enhance their overall utility tremendously, and these are just some of the many reasons.
Where are crypto payments not legalized?
There are numerous countries where cryptocurrency payments are illegal or legally restricted.
By restricted, we mean that cryptocurrencies cannot be traded or used for the process of payments, where banks or other financial service providers are prohibited from dealing with cryptocurrency exchanges or any companies that utilize cryptocurrencies. Let’s dive in and go over each of them.
Countries where cryptocurrencies are illegal:
Within China, financial institutions are not allowed to facilitate Bitcoin transactions. The regulation also prohibits financial firms from holding or trading cryptocurrencies.
On December 5, 2013, the People’s Bank of China (PBOC) made its first step toward the regulation of Bitcoin by prohibiting financial institutions from handling Bitcoin transactions.
On April 1, 2014, they ordered commercial banks and payment companies to close trading accounts. Crypto exchanges and trading platforms were also banned by regulation in September 2017, and 173 platforms were closed by July 2018,
In 2018, PBOC also announced that the State Administration of Foreign Exchange, led by Pan Gongsheng, would begin cracking down on Bitcoin mining.
A complete ban on cryptocurrency trading as well as mining was put into effect on September 24, 2021.
Due to the fact that Algeria notes that cryptocurrencies are not backed by anything that is, in fact, physical, they have banned cryptocurrencies.
The Central Bank of Bolivia has prohibited the usage surrounding cryptocurrencies due to the fact that they are unregulated.
Bangladesh has also banned the usage of cryptocurrencies due to the fact that they have noted the risks involved with money laundering and the fact that it is unauthorized for usage by the Bangladesh Bank. This makes Bitcoin (BTC), as well as other cryptocurrencies, illegal.
- Dominican Republic
The Dominican Republic has cited that they are not legal tender and that cryptocurrencies are illegal to use there.
Nepal’s central bank has banned the usage of Bitcoin (BTC) as well as other cryptocurrencies due to the fact that they do not view it as a legal currency.
Countries where the use of cryptocurrencies is legally restricted:
Bahrain requires licenses for companies to utilize cryptocurrency asset services; in other words, it is not legal to use unless they are licensed to do so.
There are heavy regulations when it comes to cryptocurrencies by the National Bank, with exchanges and mining being banned.
A complete ban on cryptocurrencies has also been contemplated within the country.
However, cryptocurrency mining is legal, as in July 2020, Kazakhstan legislation established a legal regime for mining and cryptocurrency. This means that cryptocurrencies just cannot be utilized for payments or banking purposes; they can be mined.
On April 16, 2021, the Central Bank of the Republic of Turkey issued a regulation banning the use of cryptocurrencies, and this also included Bitcoin (BTC) as well as other digital assets that are based on distributed ledger technology for the payment of goods and services. They cited possible “irreparable” damage as well as transaction risks.
According to the State Bank of Vietnam, the issuance, supply as well as usage of Bitcoin (BTC) as well as other cryptocurrencies is illegal as a means of payment and is subject to a punishment ranging from 150 million to 200 million VND.
Remember that cryptocurrency regulation is an ever-evolving and ever-changing topic, which means that these countries can, and have a high potential to change their perspective and view on cryptocurrency regulation and legality at some point in the future.
For the time being, in these countries, cryptocurrency payments are not yet legal. However, this might change at some point in the foreseeable future as cryptocurrencies prove the test of time and establish a high level of confidence in users’ minds.
How to accept crypto payments easily?
If you happen to run a business or reside in a country where cryptocurrency payments are actually legal, in that case, you might be interested in or have a genuine level of curiosity about accepting cryptocurrency payments on your website.
If you want to do so, this process has never been simpler to complete.
All you have to do is implement the utility and functionality found in the crypto payments solution NOWPayments, which will allow you to set things up quickly and efficiently.
Follow each of these steps in order to complete the process:
- Start by creating an account at the official NOWPayments website here.
- Once you have an account, ensure that you provide your crypto address to begin the overall process.
- Once that specific process is completed, you can generate your Application programming interface (API) key through the platform.
- Once you have completed all of the steps above, you will be provided with the opportunity to essentially pick one of the many available tools to implement to enable crypto payments on your specific website or platform. You can easily check all of the available options by clicking here.
Hopefully, now you have a higher level of understanding as well as a better perspective as to exactly where in the world cryptocurrency payments are not yet legal, at least in 2022.
Note that countries, governments, central banks, and other entities all play a role in this, and this is something that might change at some point in the future, maybe a week, month, or even a year from now.
Cryptocurrencies are ever-evolving, and once they meet the demands that each of these entities has, it is likely that they can become accepted and legal at some point throughout the future.
If you are located within a part of the world where cryptocurrency payments are indeed legal and want to accept cryptocurrency payments, you can utilize the advantage found in the NOWPayments payment gateway.