Cryptocurrencies were trending throughout 2021. After a downfall in 2019, cryptocurrencies managed to gain again and also found some big supporters including Elon Musk and Jack Dorsey. In Several countries use of cryptocurrencies is legal and businesses are even using them as a mode of payment. Many countries including India are still confused about whether to allow it or put a ban on it.
Back in September, China started cracking down on crypto exchanges and investors. The country made cryptocurrency mining and all cryptocurrency transactions illegal. But China is not the country that has banned digital currency. As per a new report published by the Global Legal Research Directorate (GLRD) of the Law Library of Congress, a total of 51 countries have already placed a ban on cryptocurrencies.
If you look at the report, the ban counts both Absolute ban and implicit ban. An absolute ban makes cryptocurrencies illegal while an implicit ban prohibits banks or other financial institutions from dealing in cryptocurrencies. Out of the 51 countries that have put a ban on cryptocurrencies, 9 countries have an absolute ban and 42 have an implicit ban.
Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia are the countries where cryptocurrencies are illegal. Prior to the cryptocurrency crackdown, China controlled approximately 65% of the mining industry.
The India Government and the Reserve Bank of India are in confusion about whether to allow cryptocurrencies or not. On several occasions, RBI tried to impose an implicit ban by asking banks to block financial transactions with crypto exchanges and later revoked the order.
The government of India is working on a crypto bill that will make cryptocurrency trading legal but will ban the use of crypto as a currency for payment. Cryptocurrency trading will also be under a regulation to favor investors. We are still not sure what could be in the bill. In a recent report, RBI claims that a partial ban won’t work and the financial institution is in favor of a complete ban on cryptocurrencies.
In 2021 when we are talking about NFTs and Metaverse, banning cryptocurrency won’t work. Blockchain and cryptocurrencies are an important part of Web 3.0.
