Why is Bitcoin as a cryptocurrency banned in some countries-sanewnetworks
The demand for cryptocurrency is growing every day. Bitcoin is the most widely used form of cryptocurrency. Despite the growing popularity, cryptocurrencies are banned in some countries. Saudi Arabia, Algeria, Bolivia and many others.
Let’s take a look at why some countries see Bitcoin as a threat to the nation; In some countries, Bitcoin and other cryptocurrencies are considered problematic because they cannot be controlled or regulated by the government and financial institutions. Whatever excuses a nation makes to ban cryptocurrency, it’s all about maintaining control over its own financial system.
The cryptocurrency market attracts people and criminals associated with tax evasion and money laundering. Our traditional banking institutions, recognized by most governments, are facing challenges from the cryptocurrency sector. This means that transactions take place outside of our normal banking system and can be performed by someone who has not used a bank before, making it difficult to track the transaction. For religious reasons, Saudi Arabia has outlawed bitcoin, arguing that it is incompatible with Muslim law.
Iceland has banned Bitcoin from defending against too much money leaving the country. For the simple reason that it has no control, it was banned by the Bolivian government. In 2015, Ecuador issued its own national cryptocurrency as a matching scheme, pegged to the local currency, adding convenience to recurring transactions. Many countries have lined up to launch their own digital currency.
Since there is no centralized database, the loss of a digital wallet can lead to an irrecoverable loss of virtual currency. Having a digital wallet makes it more vulnerable to theft, such as robbery, hacking and malware. Cryptocurrencies are extremely volatile in nature because there are no defenses for them. Due to its anonymous function, there is a risk of violating anti-money laundering and anti-terrorist financing laws.
The topic of taxation is one of the many challenges posed by investment and the use of cryptocurrencies. In this respect, the problem seems to be how to classify cryptocurrencies for tax purposes and the specific activities associated with them. Banning cryptocurrencies – the solution? When other countries in the world are exploring and using the cryptocurrency market to build their economies.