MILLIONS of investors around the world trade cryptocurrency – and some may be wondering if they will be banned from doing so.
The main critique of cryptocurrencies is the heavy volatility they are subject to.
In other words, the digital assets could gain or plunge rapidly with little or no notice.
With inflation spooking investors, two of the largest cryptocurrencies Bitcoin and Ethereum are down 8% and 21% year-to-date.
Countries that have banned crypto
Meanwhile, some countries have already fully banned cryptocurrencies. They are as follows:
- Egypt
- Iraq
- Qatar
- Oman
- Morocco
- Algeria
- Tunisia
- Bangladesh
- China
Moreover, India and Russia have proposed to fully ban cryptocurrencies.
In 2018, India actually banned crypto transactions – but it was struck down by the Supreme court in March 2020.
Why ban cryptocurrencies?
Some might think the reason cryptocurrencies are banned in some countries overseas is over volatility – but that’s not necessarily true.
A big issue is the scams users are susceptible to.
China’s government, for instance, claimed it was concerned that people were using digital assets for fraud and laundering.
It has also expressed concerns over the impact on the environment, as well as the potential of the destabilization of the country’s financial system.
Russia, India, and other countries have also feared about cryptocurrencies affecting their financial systems.
