Cryptocurrency, the revolutionary technology which is challenging tech and financial giants like Google, Amazon, Visa, to up their game, is recently facing a lot of heat. The Crypto industry has travelled light years, since its inception a decade ago. Cryptocurrency has outgrown its use case as a mere financial tool to being a technological platform, where anyone can build a multi-billion dollar start-up, if he or she has an idea. It has slowly but surely taken the transformation course from being acknowledged as a currency to a bona fide asset class. But as we say, technological greatness comes with their own set of flaws. In the year 2021 alone, the Crypto industry has seen a lot of ups and downs. Reports of governments looking to put a ban on Cryptocurrency, and activities relating to it were the inside rumours Token Multisender.
The Year 2021 has been a sorry year for Crypto.
News of top cryptocurrencies “Bitcoin and Ethereum” being extremely harmful for the environment, shook the market, earlier this year. News of China banning cryptocurrencies for the 7000th time and what not. And as if things weren’t bad enough. News of the Indian government looking to propose a bill, which would ban all cryptocurrencies in the country, rose through the ranks. Panic selling and misery, is what Indian crypto exchanges witnessed, as the news caught attention. But, surprisingly foreign or international exchanges like Binance and Robinhood remained unaffected by the debacle.
Some countries have imposed outright ban on cryptocurrencies and yet its citizens have found ways to interact with it. Take for example China, which has kept on imposing harsh restrictions and ban all crypto activities. And yet a report from the Financial Times suggests that, mainland China is the biggest market to cryptocurrency activities in Asia. An estimated $256 billion from China is now locked up in DeFi platforms. Which makes us question is a ban on Cryptocurrency even possible?
Countries which have already put a ban on Cryptocurrency
Before moving on, let’s see which countries have barred cryptocurrency activities already, and how much of success have they attained!
Algeria has currently prohibited the buying, selling or holding of any Cryptocurrencies, following its “financial law of 2018”. But despite the ban, cryptocurrency is still a hot topic there, and people between the age of 25 – 40 have been found to be the most invested in it.
In Colombia, financial institutions are not allowed to facilitate Bitcoin transactions. The Central Bank has already stated an advisory, that it may not protect any investments related to virtual coins. But, surprisingly the blanket ban has not stopped the Colombians from investing into Crypto. According to a report from triple-a.io, 6% of the total population of Colombia now owns some sort of Cryptocurrency. Colombia also ranks 4th on peer-to-peer Bitcoin trading volume in the whole world. The year 2020, has shown a 125% increase in users in Colombian crypto platforms. Basically Colombians, since the blanket ban have invested aggressively into crypto, making their country the largest consumer in the region.
Egypt’s primary Islamic advisory body in 2018, classified Bitcoin transactions as “Haram”. Eventually on September 2020, the country’s Central Bank prohibited trading or promotion of crypto’s without a certified license. About 2% of Egyptian population has access to cryptocurrencies. 2% is a pretty commendable achievement in a nation, where 67% of the adult population are unbanked or deprived from any financial institution. Demand for Bitcoin surged to an all time high in Egypt in 2020, the same year the Central Bank imposed the ban. Over 2.2 million Egyptian pounds were recorded for peer-to-peer trading volume of Bitcoin in 2020. Cryptocurrencies in a place like Egypt, could harbor as a practical alternative for the financially excluded class.
Iraq’s Central Bank had issued a statement in 2017, prohibiting the use of Cryptocurrencies, a law which stand till date. In early 2021, the Ministry of Interior issued a similar guidance forbidding financial institutions from handling crypto’s. But despite su