- According to recent research, the total number of countries banning cryptocurrencies is more than double.
- 2021 was a positive year for the dimension of cryptocurrency when it came to market performance. But jurisdictions have been prohibiting this industry since 2018.
- According to the LOC report, the ban imposed that any transaction encompassing cryptocurrency is a criminal act.
According to recent research, the total number of countries Restricting cryptocurrencies is more than double. Of course, this has happened only in the past three years, but the good news is that the trend is gradually coming off.
2021 was a positive year for the dimension of cryptocurrency when it came to market performance. But jurisdictions have been prohibiting this industry since 2018.
According to the report put forward by the Library of Congress, nine jurisdictions have applied for a total restriction on cryptocurrency. Also, 42 others are provoking an implicit prohibition. These numbers are quite high (8 & 15 respectively) and have doubled in the last three years. The library of congress is acting as the National Library, which is a research unit by the United States senate.
What Does the LOC Report say?
According to the LOC report, the ban imposed that any transaction encompassing cryptocurrency is a criminal act. The nine countries that have put an absolute ban are Iraq, Oman, Qatar, Egypt, Tunisia, Algeria, Morocco, Bangladesh, and China. In 2021 it was shocking to see that China has banned cryptocurrency, and this news has received the most attention.
There is a dramatic increase in countries banning cryptocurrency, and it is not showing any sign of stopping soon. Apart from the 51 jurisdictions imposing the prohibition, 103 e others have also applied to combat the funding of terrorism and anti-money laundering. All this can be traced back to 2018, and there has been a threefold increase in the law impositions.
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Also, a crypto ban has been put on the proof of work mining in November by the Swedish financial watchdog and the Swedish environmental protection agency. It was done because of the cost of consistent network run and power demand. But according to the Paris-based Melanion capital, it was a total miss informed act to do.
Sweden’s neighbor Estonia is set to implement the anti-money laundering rules from February onwards. They will change the dimension of virtual asset service providers and ban Bitcoin and Defi.
As far as India is concerned, the government has created anxiety for the investors because they are considering a crypto ban. It is true that they will not put a band completely but will make the surveillance a lot stricter. However, there will be proper regulation of crypto assets, which will be done with India’s securities and exchange board. People are even concerned that there can be a total crypto ban, but there is no definitive news yet.
What happens when a jurisdiction decides to ban cryptocurrency?
What does it mean for the investors who have been putting their funds into cryptocurrency for a long time? Most users are worried about their investments if the government decides to ban digital tokens. But if we think practically, cryptocurrency is quite flexible and is not restricted to any border. Global crypto exchanges will be open, and the fund may be transferred to the global forum. But even that is under consideration because some countries may put a complete stop to the indirect holding of cryptos. That may be the major cause of killing numerous innovative projects of a blockchain built from that country.
In case of a complete crypto ban, the users should exit from their investments as they will be given a proper time frame. But most likely, numerous users will hold onto their portfolios in anticipation of a better acceptance or selling their coins in international markets.