China made big headlines last year by banning crypto, but it is one of dozens of countries and jurisdictions that have banned or severely restricted cryptocurrency for years.
Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh and China have all banned cryptocurrencies. Forty-two other countries, including Algeria, Bahrain, Bangladesh and Bolivia, have banned digital currencies by restricting banks’ ability to operate cryptocurrencies or restricting cryptocurrency exchanges, according to a 2021 law library summary report Published by Congress in November.
The number of countries and jurisdictions that have banned crypto completely or indirectly in 2018 has more than doubled since the first report was published.
Some governments have banned cryptocurrencies, arguing that cryptocurrencies are being used to divert money to illegal sources and that the rise of cryptocurrencies will destabilize their economies. While not all governments are moving to ban crypto, many are looking for ways to control digital currency, with Gary Gensler, chairman of the U.S. Securities and Exchange Commission, calling crypto a “wild waste.” He said he would like to implement more controls In digital currency. Gensler last week hired a senior adviser who specializes in cryptocurrencies.
When crypto was banned last year, China did it in several stages. In May, the country first banned financial institutions from engaging in any crypto transactions. Then in June all domestic crypto mining was banned and finally in September cryptocurrency was completely banned. The world’s second-largest economy was previously leader by cryptocurrency mining, and government action against cryptocurrency led to large sales before price stability was achieved. The Chinese government has said it is particularly concerned about the impact of crypto mining on the environment and the use of digital currency for fraud and money laundering. The country is now introducing its own digital yuan currency, trying to make it more widely available to consumers.