4 Countries that Prohibited Cryptocurrency Payments

Regardless of the transformation cryptocurrency has introduced in the payment and  transaction industry, digital assets are still facing resistance in some countries. A good number of governments have shown concerns of cryptocurrency threatening their traditional fiat currency,  finance and economy.

Thailand

Thailand has now gotten to be the latest country to bar the use of digital currency as a method of payments. The country’s Securities and Exchange Commission (SEC) urged that there's a need to modulate crypto exchanges otherwise there’s a huge threat to hit the country’s economy and financial stability. 

The new regulations to be drafted are to be followed by all cryptocurrency businesses, and the regulations are in line with those in the UK, South Korea, Europe and Malaysia. While the method is banned from use in making payments in the country, other transactions and trade will continue uninterrupted, said the agency.

China

In China, officials have strongly warned people trading digital assets and miners against the fraudulency they might encounter. This was aired by Yin Youping, the Deputy Director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC) on the 27th of August 2021.

On 24th September, the same year, PBoC banned cryptocurrency from the country since it was heading to a decentralized currency and they had less control over it. Rather, the government issued its own e-currency which would then be more closely monitored than other digital currencies.

India

Just like in most countries, Indian youths are at a high involvement in crypto mining, trading and other cryptocurrency transactions. This forced the Indian government to introduce a bill making it a crime to trade, possess, mine, and transact using digital currencies with a fear that the currency would spoil the youth, according to the prime minister of India, Narendra Modi.

The bill would rather introduce an e-currency backed up by the central bank, and erase all other digital currencies.

Iran

Among other countries, there’s Iran, with conflicting loyalty the country is in need of eliminating cryptocurrencies from its economy. Though Bitcoin mining and trade has helped Iran lessen the impact of sanctions imposed onto its economy, the country has paused all crypto activities in the country. The country suggested that all the mined digital assets be sold to the central bank to bridge the loopholes in the economy.

When Iran encouraged Bitcoin mining, it faced a challenge that other unlicensed digital miners would on a daily basis consume 2,000MW, and this caused a big energy shortage. 

Now the country paused all cryptocurrency mining including Bitcoin until September. 

Not only payments are under threat

Different countries have also stressed restrictions on cryptocurrency companies concerning their adverts. One of the major causes of these restrictions are the unexhausted cons in digital currencies.

In the United Kingdom, crypto adverts and promotions are at the verge of being involved into the scope of financial promotions legislation which protect citizens from misleading adverts. The UK has not any intentions of banning cryptocurrencies but rather plans to introduce a crypto asset market along with the ads restrictions.

Other countries like Spain have made a countrywide warning concerning these cryptocurrency advertisements and promotions.

In a nutshell, the future of cryptocurrency will continue to face such restrictions, bans and legislations but most countries’ concern is having a central financial system to control and monitor all the cryptocurrency transactions, trade and mining.