Over the past three years, the number of jurisdictions doing outright cryptocurrency bans or severe limitations on cryptocurrency has increased. There are no indicators that this trend will slow down any time soon. Instead, the numbers keep increasing in the past few years. For the next years, the projected numbers are uncertain.
The cryptocurrency industry had a strong year in terms of market performance in 2021. Despite this known fact, the number of governments that have banned bitcoin has more than doubled since 2018.
According to the research of the Library of Congress (LOC), nine jurisdictions have now implemented an absolute prohibition on cryptocurrency. The Library of Congress (LOC) serves as the research library for the United States Senate and as the country’s national library.
Meanwhile, there are 42 jurisdictions have implemented an implied ban. This represents an increase from eight and fifteen, respectively, in 2018, when the data was originally released. More jurisdictions are added with each passing year. The possibility of this trend decreasing seems unlikely to happen.
Furthermore, a total prohibition means that any “transactions with or holding cryptocurrency is considered a criminal act”. Whereas an implicit prohibition prohibits cryptocurrency exchanges, banks, and other financial institutions from “dealing in cryptocurrencies or offering services to individuals/businesses dealing in cryptocurrencies”. This is according to the LOC report.
Countries such as Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh, and China are among the nine new jurisdictions that have outright banned the practice. The most talked-about topic in 2021 was China’s cryptocurrency ban.
The Cryptocurrency bans keeps increasing.
The significant surge in the number of jurisdictions banning or regulating cryptocurrencies over the past three years shows no signs of decreasing. In addition, other governments are presently evaluating their options, according to the World Bank. Aside from the 51 jurisdictions imposing a crypto ban, 103 jurisdictions have enacted anti-money laundering and counter-terrorist financing (AML/CFT) legislation. There’s a threefold increase from the 33 jurisdictions that had such legislation in place in 2018.
In November, the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency urged for a ban on Proof of Work (PoW) mining. They are citing the high energy needs and environmental costs associated with maintaining network operations. In response, Paris-based Melanion Capital slammed the charges against mining as “totally inaccurate,” according to the publication.
Estonia, Sweden’s EU neighbor, plans to enact anti-money laundering and counter-terrorist financing regulations in February. According to expectations, these new laws would alter the definition of what constitutes a virtual asset service provider (VASP). They will impose an implicit prohibition on decentralized financing (DeFi) and Bitcoin (BTC).
When Indian lawmakers proposed a crypto-currency ban last year, the country’s authorities made a stir. The result was not an outright ban, but a push to regulate cryptocurrencies as crypto assets. This is in collaboration with the Securities and Exchange Board of India (SEBI). They are in charge of overseeing the regulation of local cryptocurrency exchanges. An outright prohibition, on the other hand, is not out of the question.