The Indian government announced its full plan to ban cryptocurrency but a few private digital currencies that allow official digital currency the Reserve Bank of India. A bill named “Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” seeks to prohibit private crypto in India that will be tabled at the Winter Session of Parliament that was started on November 29. However, it also allows exceptions to promote underlying cryptocurrency technology and its usage.
To the bill introduction, the objective of the Indian government is “to create a framework that is facilitative for the creation of the digital currency issued by the RBI”. The Bill listed for introduction, consideration, and passing of the bill in the Lok Sabha is among twenty-six new Bills that are to be introduced within the session of Parliament beginning November 29.
Speaking on the ban on private cryptocurrencies, there has been a heated debate around most notably bitcoin cryptocurrency which is the largest digital currency by market capitalization to date. Due to controversies surrounding digital currencies, many countries placed limitations on the way to use Bitcoin in several countries as they have totally banned Bitcoin uses and cryptocurrencies outright along with heavy penalties placed for anyone making transactions with cryptos.
Let’s take a look at the list of countries that have restricted and banned the Use of Cryptocurrencies:
1 Nepal: The Nepal Rastra Bank declared the Bitcoin cryptocurrency illegal in August 2017.
2 China: Since the advent of digital currency, China has cracked down on cryptocurrencies quite brutally with restrictions. In order to deal with the giants of crypto like Bitcoin, China introduced its own centrally-regulated cryptocurrency that is called Digital Renminbi or RMB.
3 Vietnam: Supply, issuance and the use of Bitcoin are illegal as a mode of payment that is subject to fines ranging from 150 million as per the State Bank of Vietnam or SBV. However, the government of Vietnam doesn’t ban the trading or holding of Bitcoin as assets.
4 Colombia: In Colombia, financial institutions are not allowed Bitcoin transactions. In 2014, the Superintendencia Financiera warned some financial institutions that they do not “protect, broker, invest, or manage virtual currency operations”.
5 Russia: Bitcoin is not regulated in Russia, and the use of Bitcoin as payment for services or goods is also illegal.
6 Ecuador: Bitcoin cryptocurrencies were totally banned in Ecuador by the majority vote within the national assembly.
7 Bolivia: The government of Bolivia has put a ban on cryptocurrency that does not come under the regulatory radar of the economic system of Bolivia since 2014. The government of Bolivia took a decision citing the possibility of criminal activities and Ponzi schemes.
8 Algeria: This country prohibits the use of digital currency following the financial law in 2018. As they made it illegal to sell, buy, use or hold the use of virtual currencies.
9 Egypt: In 2018, Egypt’s Dar al-Ifta issued a religious decree that classifies transactions on Bitcoin as ‘haram’. It is also prohibited under Islamic law. And, adhering to the advisory, this country considers cryptocurrency transactions as ‘haram’.
10 Indonesia: In 2018, the Bank of Indonesia which is the central bank of the country, issued regulations and banned the use of cryptocurrencies, including Bitcoin as the mode of payment.