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These are the countries where crypto is restricted or illegal.

Since its beginnings in 2009, Bitcoin, as well as the subsequent cryptocurrencies that followed, has been fraught with controversy.

While Bitcoin has been extensively criticised for its volatility, usage in criminal transactions, and excessive use of electricity to mine it, some people, particularly in the developing countries, perceive it as a safe haven amid economic storms.

As more individuals turn to cryptos as an investment or a lifeline, these difficulties have manifested themselves in a slew of new regulations governing how they can be utilised.

The legal status of Bitcoin and other altcoins (alternative currency to Bitcoin) varies significantly from nation to country, with certain relationships still being established or changing often.

While the majority of countries do not make it unlawful to use Bitcoin, its status as a payment method or a commodity differs, with different regulatory repercussions.

Some governments have imposed restrictions on how Bitcoin can be used, with banks prohibiting their customers from transacting in the cryptocurrency. Other governments have explicitly prohibited the usage of Bitcoin and cryptocurrencies, imposing stiff penalties on anyone who transacts in them.

These are the countries with the most tense relations towards Bitcoin and other altcoins.

Algeria

Following the passing of a financial law in 2018, Algeria currently prohibits the usage of cryptocurrency making it illegal to buy, sell, use, or hold virtual currencies.

Bolivia

Since 2014, Bolivia has imposed a blanket ban on the use of Bitcoin. The Bolivian Central Bank issued a resolution prohibiting it from being used in Bolivia, as well as any other currency not authorised by a country or economic zone.

China

Throughout the year of 2021, China will intensify its crackdown on cryptocurrencies. Chinese officials have frequently warned its citizens to stay away from the digital asset market, and they have cracked down hard on mining and currency exchanges both in China and abroad.

On August 27, Yin Youping, the Deputy Director of the People's Bank of China's (PBoC) Financial Consumer Rights Protection Bureau, referred to cryptos as speculative assets and advised people to "guard their pockets."

Efforts to destabilise Bitcoin, a decentralised currency that is independent of governments and institutions, are often interpreted as an attempt by the Chinese government to launch its own e-currency.

The PBoC wants to be one of the first major central banks in the world to establish its own digital currency, allowing it to keep a closer eye on its citizens' transactions.

Colombia

Financial institutions are not permitted to facilitate Bitcoin transactions in Colombia. Financial institutions were warned by the Superintendencia Financiera in 2014 that they could not "guard, invest, broker, or manage virtual money operations."

Egypt

In 2018, Egypt's leading Islamic advisory body, Dar al-Ifta, issued a religious ruling defining Bitcoin transactions as "haram," which is illegal under Islamic law. While not legally enforceable, Egypt's banking rules were modified in September 2020 to make it illegal to trade or promote cryptos without a licence from the Central Bank.

Indonesia

From January 1, 2018, Bank Indonesia, the country's central bank, published new regulations prohibiting the use of cryptocurrencies, including Bitcoin, as a form of payment.

Iran

The Iranian regime has a complicated connection with Bitcoin. Iran has turned to the profitable industry of Bitcoin mining to finance imports in order to avoid the worst effects of punishing economic sanctions.

While the Central Bank prohibits the trading of cryptocurrencies created outside of the country, it has provided initiatives to encourage Bitcoin mining within the country.

Iran is host to around 4.5 percent of the world's Bitcoin mining, which could generate over $1 billion (€843 million) in revenue, according to blockchain analytics firm Elliptic.

Iran has provided inexpensive energy to licenced miners in order for the crypto business to thrive, but all mined cryptos must be sold to the Central Bank.

Unlicensed mining, on the other hand, drains more than 2GW from the national grid every day, resulting in power shortages.

As a result, Iranian officials have imposed a four-month ban on Bitcoin mining, which will last until September 22.

Nepal

As of August 2017, the Nepal Rastra Bank proclaimed Bitcoin to be unlawful.

Macedonia, North

North Macedonia is now the only European country with an explicit prohibition on cryptocurrencies like Bitcoin, Ethereum, and others.

Russia

While Bitcoin is not illegal in Russia, it is the subject of a long-running debate.

In July 2020, Russia established its first crypto-regulation regulations, designating bitcoin as taxable property for the first time.

Russian civil personnel are likewise prohibited from owning any crypto assets under the rule, which took effect in January of this year.

Russian President Vladimir Putin has connected bitcoin to criminal activities on several occasions, advocating for increased scrutiny of cross-border crypto transactions in particular.

The prosecutor general unveiled new proposed law in July that would allow authorities to seize cryptos considered to have been obtained illegally, noting their usage in bribery.

Turkey

As the Turkish lira fell in value, many people in Turkey turned to Bitcoin. With some of the world's highest levels of use, rules arrived quickly this year, just as inflation spiked in April.

The Central Bank of the Republic of Turkey released a decree on April 16, 2021, prohibiting the use of cryptocurrencies, including Bitcoin, to pay for goods and services, either directly or indirectly. The Turkish president, Recep Tayyip Erdoan, went even further the next day, issuing a decree adding cryptocurrency exchanges to a list of businesses subject to anti-money laundering and anti-terrorism financing regulations.

Vietnam

The State Bank of Vietnam has declared that the issuance, sale, and use of Bitcoin and other cryptos as a form of payment is prohibited, and that violators will face fines ranging from 150 million VND (€5,600) to 200 million VND (€7,445).

The government, on the other hand, does not prohibit Bitcoin trading or holding as an asset.