Despite the fact that the cryptocurrency industry had a solid year in terms of market performance in 2021, the number of governments that have banned bitcoin has more than doubled since 2018.
The Library of Congress (LOC) has released a paper detailing the nine countries that have implemented an outright ban on crypto, as well as the 42 that have implemented an implied ban. This is up from eight and fifteen, respectively, when the report initially came out in 2018.
The LOC is the Senate’s research library, as well as the country’s national library.
An absolute ban means that any “transactions with or holding cryptocurrency is a criminal act,” whereas an implicit ban prohibits cryptocurrency exchanges, banks, and other financial institutions from “dealing in cryptocurrencies or offering services to individuals/businesses dealing in cryptocurrencies,” according to the LOC report.
Middle East is among the nine new jurisdictions
Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh, and China are among the nine new jurisdictions with an outright prohibition. In 2021, the most focus was paid to China’s cryptocurrency ban.
The rapid rise in jurisdictions prohibiting or regulating cryptocurrency over the last three years shows no signs of slowing down. With several governments presently examining their options. Aside from the 51 jurisdictions that have enacted crypto bans, 103 have enacted anti-money laundering and counter-terrorist financing (AML/CFT) legislation, up from 33 jurisdictions in 2018.
Due to the power needs and environmental costs of maintaining networks, a Swedish financial watchdog and the Swedish Environmental Protection Agency advocated for a ban on Proof of Work (PoW) mining in November. Melanion Capital, based in Paris, slammed the arguments against mining as “totally ignorant”.
New guidelines are likely to alter the definition of a virtual asset service provider
Estonia, Sweden’s EU neighbour, plans to implement AML/CFT regulations in February. These new guidelines are likely to alter the definition of a virtual asset service provider (VASP). And imply a ban on decentralised finance (DeFi) and Bitcoin (BTC).
When India’s lawmakers proposed a crypto ban last year, it caused a stir. The result was not an outright ban, but a push by the Securities and Exchange Board of India (SEBI). Which regulates local crypto exchanges, to regulate cryptocurrencies as crypto assets. A total prohibition, on the other hand, is not ruled out.