New Delhi: The Indian government on Tuesday announced its plan to ban all but a few private cryptocurrencies while allowing an official digital currency by the RBI. A bill called the “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” that seeks to prohibit all private cryptocurrencies in India will be tabled during the Winter Session of Parliament starting November 29. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its usage.
Through the introduction of this bill, the government’s objective is “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India”. The Bill has been listed for introduction, consideration and passing in the Lok Sabha and is among 26 new Bills, which are to be introduced in the Parliament session beginning November 29.
Speaking of the ban on all private cryptocurrencies, there has always been a heated debate around cryptocurrency, most notably bitcoin, which is said to be the largest digital currency by market capitalization to date. And due to such controversies surrounding these digital currencies, a number of countries have placed limitations on the way Bitcoin can be used and several countries have totally banned the use of Bitcoin and cryptocurrencies outright with heavy penalties in place for anyone making crypto transactions.
Let’s have a look at countries that have banned and restricted the Use of Cryptocurrencies like Bitcoin:
- Nepal: The Nepal Rastra Bank declared Bitcoin illegal as of August 2017.
- China: Ever since the advent of digital currencies, China has cracked down on cryptocurrencies and been quite brutal with its restrictions. To deal with the crypto giants like Bitcoin, China even introduced their own centrally-regulated digital currency called Digital Renminbi (RMB). The government has also cracked down on mining bitcoins in the country. With this, it can be said that bitcoin is essentially banned in China.
- Vietnam: Issuance, supply, and use of Bitcoin and other cryptos are illegal as a means of payment and are subject to punishment of fines ranging from 150 million VND (€5,600) to 200 million VND (€7,445), as per the State Bank of Vietnam. However, the government doesn’t ban Bitcoin trading or holding them as assets.
- Colombia: In this country, financial institutions are not allowed to facilitate Bitcoin transactions. Earlier in 2014, the Superintendencia Financiera warned financial institutions that they may not “protect, invest, broker, or manage virtual money operations”.
- Russia: Bitcoin is not at all regulated in Russia, and its use as payment for goods or services is also illegal.
- Ecuador: Bitcoin and other cryptocurrencies were banned in Ecuador by a majority vote in the national assembly.
- Bolivia: The government of this nation has put a complete ban on any currency that does not undergo the regulatory radar of Bolivia’s economic system since 2014. The Bolivian government took the decision citing possibilities of various ponzi schemes and criminal activities.
- Algeria: This country 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.
- Egypt: In 2018, Egypt’s Dar al-Ifta, the country’s primary Islamic advisory body, issued a religious decree classifying Bitcoin transactions as ‘haram’, something prohibited under Islamic law. And, hence adhering to the advisory, the country considers any cryptocurrency transaction as ‘haram’.
- Indonesia: From 1 January 2018, Bank Indonesia, the country’s central bank, issued new regulations banning the use of cryptocurrencies, including Bitcoin, as a means of payment.
