Beijing, 6 January 2022 (TDI): China was one of the first countries to take steps into regulating cryptocurrency, beginning way back in 2013 when it prohibited financial institutions from holding or handling bitcoin transactions.
In 2022, 8 countries, including China have banned cryptocurrencies completely while another 50 countries have banned the medium in some direct or indirect way.
These countries include Egypt, Iraq, Qatar, Bangladesh, and Oman.
Most of these countries fall into the Arab or African peninsulas.
India and Iran recently announced plans to regulate and/or ban cryptocurrencies. Currently, there are 103 countries that impose some form of tax or regulation on cryptocurrencies.
Cryptocurrency by its very nature is decentralized.
It can not be controlled or propagated by an external force, which is the driving force behind its banning. Many experts also believe blockchain technology will disrupt many industries as well as law and finance.
Some governments claim that cryptocurrency could destabilize their economy while others claim that it is being used to channel money to illegal sources, some cryptocurrencies are also cleverly disguised scams that have caused millions of people who had invested their money into these currencies to lose large sums of money.
Cryptocurrency and Blockchain technology
Cryptocurrency is a virtual currency that is traded between two parties without a broker. The sales are recorded on a ledger. Cryptocurrency is secured by a cryptograph. This makes the medium impossible to counterfeit and allows for secure transactions without the need for an intermediary.
In addition, Crypto is not issued by a central authority which makes it hard to control and prevents any kind of manipulation or intervention by the authorities.
Blockchain technology within Crypto allows data to be recorded and Cryptocurrencies to operate without the need for a central authority. This eliminates risk and transaction costs but is also vulnerable to attacks or data breaches.
