Which Countries Ban Bitcoin?

Bitcoin faces restrictions in 18 countries globally, with varying levels of prohibition from complete bans to payment restrictions. Nine countries have implemented complete Bitcoin bans: Afghanistan, Algeria, Bangladesh, China, Egypt, Kuwait, Nepal, North Macedonia, and Tunisia, while nine others maintain partial restrictions on financial institutions or payments.

Key Takeaways

• Only a handful of countries completely ban Bitcoin, with most implementing partial restrictions instead.

• China has the most comprehensive ban, with restrictions beginning in 2013, escalating through 2017-2021, and reaching complete prohibition by 2021-2025.

• Ban severity varies significantly, from complete prohibitions to restrictions on financial institutions only.

• Most bans stem from concerns about financial stability, capital flight, and money laundering rather than ideological opposition to cryptocurrency.

• Enforcement effectiveness varies widely, with underground trading continuing in many banned jurisdictions.

• Some countries are reconsidering their positions, with Bolivia notably drastically changing their stance and partnering up with the crypto friendly nation of El Salvador.

What Bitcoin Bans Actually Mean

Before diving into specific countries, it’s important to understand what a “Bitcoin ban” actually means in practice. There are different levels of restrictions, each with varying degrees of enforcement. In this article, we will classify the bans into three severity levels for easy understanding. Note that this is not a formal classification.

Ban Severity Levels

Level 3 – Complete Prohibition (Most Severe): Everything related to Bitcoin is illegal: owning it, trading it, mining it, and using it for payments. Violations can result in criminal charges, fines, and/or imprisonment.

Level 2 – Institutional/Payment Ban (Moderate): Financial institutions cannot facilitate crypto transactions, and businesses cannot accept Bitcoin as payment, but individual ownership may remain legal.

Level 1 – Regulatory Restrictions (Mild): Bitcoin is legal but heavily regulated as compared to crypto friendly nations. There are restrictions on exchanges, mandatory registration requirements, or warnings about risks.

Now, let’s look at the list of countries that ban Bitcoin.

Level 3 Bans: Complete Prohibition

1. Afghanistan

• Ban Level: 3 (Complete Prohibition).

• Date of Ban: 2022 under Taliban rule.

• Issuing Department: Taliban Government.

• Reason for Ban: Financial instability and fraud concerns. The regime tightly restricts crypto trading under the law.

• Future Outlook: Unlikely to change under the current regime. The Taliban’s strict financial controls make reversal improbable.

• Additional Comments: Cryptocurrencies were popularly utilized prior to the prohibition for remittances and asset preservation, but use now remains underground.

2. Algeria

• Ban Level: 3 (Complete Prohibition).

• Date of Ban: 2018.

• Issuing Department: Official Journal (Government Publication).

• Reason for Ban: Absence of physical backing and concerns about virtual currency risks. Article 117 specifically prohibits “purchase, sale, use, and holding of so-called virtual currency”.

• Future Outlook: Algeria’s authoritarian structure makes enforcement relatively straightforward, with little indication of policy reversal.

3. Bangladesh

• Ban Level: 3 (Complete Prohibition)

• Date of Ban: September 2014 (initial warning), December 2017 (reinforced restrictions) 

• Issuing Department: Bangladesh Bank (Central Bank)

• Reason for Ban: Risks to financial stability and monetary policies, with authorities citing concerns about illicit activities

• Future Outlook: May soften. Despite the crackdown, crypto adoption continues, with Bangladesh ranking 35th in the 2024 Global Crypto Adoption Index.

• Additional Comments: Usage of cryptocurrencies appear to persist in the nation despite the ban, with users reportedly using Coinbase and Binance, which are neither banned nor legally acknowledged. There also appear to be conflicting answers as to whether or not Bitcoin is actually banned. Regardless, Bangladesh authorities generally have a hostile attitude towards Bitcoin.

4. China

• Ban Level: 3 (Complete Prohibition).

• Date of Ban: December 5, 2013 (initial restrictions), September 4, 2017 (comprehensive ban), September 2021 (complete prohibition).

• Issuing Department: People’s Bank of China (PBOC) in conjunction with nine other state bodies including police and supreme court.

• Reason for Ban: Financial stability concerns, capital flight prevention, and maintaining monetary sovereignty. China feared cryptocurrencies were facilitating massive capital outflows and undermining the government’s ability to control monetary policy.

• Future Outlook: Unlikely to change.

• Additional Comments: Despite China’s hard stance against crypto, the nation appears to be interested in stablecoins. Most notably, Hong Kong’s authorities have passed a stablecoin bill, which seeks to build a regulatory framework for Web3 innovation. It is possible that China wishes to use Hong Kong’s financial hub status as a testing ground for further Web3 regulations.

5. Egypt

• Ban Level: 3 (Complete Prohibition).

• Date of Ban: Various warnings and restrictions since 2018, effectively a complete ban.

• Issuing Department: Central Bank of Egypt (CBE).

• Reason for Ban: Volatility, money laundering, and fraud fears. Additional religious pressure from Egypt’s Dar al-Ifta, the primary Islamic legislator in Egypt who classified Bitcoin as “haram” (prohibited under Islamic law).

• Future Outlook: May evolve toward regulation, though current stance remains restrictive.

6. Kuwait

• Ban Level: 3 (Complete Prohibition).

• Date of Ban: July 17, 2023

• Issuing Department: Central Bank of Kuwait, Capital Markets Authority, Insurance Regulatory Unit, and Ministry of Commerce and Industry.

• Reason for Ban: “Absolute prohibition” on all cryptocurrency activities including payments, investments, and mining to strengthen AML/CFT compliance.

• Future Outlook: Unlikely to change. Kuwait enforces one of the most comprehensive crypto bans globally.

• Additional Comments: The ban covers all aspects of cryptocurrency activity with penalties under AML/CFT laws.

7. Nepal

• Ban Level: 3 (Complete Prohibition).

• Date of Ban: 13 August 2017

• Issuing Department: Nepal Rastra Bank (Central Bank).

• Reason for Ban: Cited risks of money laundering, terrorism financing and tax evasion as reasons for the ban.

• Future Outlook: Likely to remain. Nepal’s consistent enforcement through arrests indicates a firm stance against cryptocurrencies.

8. North Macedonia

• Ban Level: 3 (Complete Prohibition).

• Date of Ban: 2016 (National Bank warnings), reinforced as illegal.

• Issuing Department: National Bank of the Republic of North Macedonia (NBRM).

• Reason for Ban: Bitcoin trading and use declared illegal because international payment operations must be conducted by Macedonian banks.

• Future Outlook: Evolving. The new government from 2024 is considering crypto regulation to attract foreign investment.

• Additional Comments: North Macedonia is the only European country where cryptocurrencies are explicitly illegal, though this may change with new regulatory drafts expected in 2025.

9. Tunisia

• Ban Level: 3 (Complete Prohibition)

• Date of Ban: 2018.

• Issuing Department: Central Bank of Tunisia (BCT).

• Reason for Ban: Cited capital flight and money laundering as primary reasons.

• Future Outlook: Unlikely to change, although the 2020 governor tried to campaign against this policy as it discourages innovation.

Level 2 Bans: Institutional/Payment Restrictions

1. Ecuador

• Ban Level: 2 (Payment Restrictions).

• Date of Ban: 2014 (payment ban), 2018 (trading restrictions eased).

• Issuing Department: Central Bank of Ecuador.

• Reason for Ban: Initially banned to promote its own “electronic money” system. Cryptocurrency as a payment tool remains banned but trading is now allowed.

• Future Outlook: Mixed. While trading is permitted, payment restrictions remain in place.

• Additional Comments: Ecuador’s electronic money program “Dinero Electrónico” operated from 2014 to 2018 and was discontinued thereafter.

2. Iraq

• Ban Level: 2 (Institutional Restrictions).

• Date of Ban: 2021.

• Issuing Department: Central Bank of Iraq.

• Reason for Ban: Financial crime risks, volatility, and consumer protection concerns. Banks, financial institutions, and payment service providers are prohibited from handling digital assets.

• Future Outlook: Uncertain. Despite restrictions, adoption amongst Iraqi youth appears to be growing, with some using cryptocurrencies to hedge against currency depreciation.

3. Morocco

• Ban Level: 2 (Previously complete, now transitioning).

• Date of Ban: November 20, 2017 (original ban), stance shift in 2024.

• Issuing Department: Foreign Exchange Office and Bank Al-Maghrib (central bank).

• Reason for Ban: Fears surrounding terrorism financing, fraud, and monetary instability.

• Future Outlook: Positive change expected. The Moroccan government announced in November 2024 that it was drafting new legislation to regulate cryptocurrency rather than ban it outright.

• Additional Comments: While crypto is still technically banned in Morocco, the nation has consistently ranked high in crypto adoption surveys.

4. Nigeria

• Ban Level: 2 (Institutional Restrictions).

• Date of Ban: January 17, 2017, reinforced February 5, 2021.

• Issuing Department: Central Bank of Nigeria (CBN).

• Reason for Ban: Financial crime concerns and regulatory uncertainty.

• Future Outlook: May evolve. Nigeria has significant crypto adoption despite restrictions.

• Additional Comments: The ban focuses on financial institutions rather than individual ownership.

5. Qatar

• Ban Level: 2 (Institutional Restrictions, evolving)

• Date of Ban: 2018.

• Issuing Department: Qatar Central Bank.

• Reason for Ban: High volatility and potential use for financial crimes and electronic hacking. Banks are prohibited from dealing with Bitcoin and other cryptocurrencies.

• Future Outlook: Positive change expected. Qatar is developing a regulatory framework for digital assets, with new legislation expected in 2024-2025.

• Additional Comments: The government has expressed interest in adopting blockchain technology for FinTech applications while maintaining restrictions on cryptocurrencies.

6. Türkiye

• Ban Level: 2 (Payment Restrictions).

• Date of Ban: April 16, 2021 (effective April 30, 2021).

• Issuing Department: Central Bank of the Republic of Türkiye.

• Reason for Ban: Citing possible “irreparable” damage and transaction risks from using cryptocurrencies for payments.

• Future Outlook: Uncertain but optimistic. Despite the payments ban in 2021, crypto assets are briefly mentioned in Türkiye’s 2024 Medium-Term Program (MTP) report. It suggests that authorities are considering adding regulatory frameworks to support development.

• Additional Comments: Crypto usage in Turkey remains high as the nation currently suffers from rapid currency devaluation (hyper inflation), causing many citizens to turn towards crypto such as Bitcoin as a means to preserve their purchasing power.

Level 1 Bans: Regulatory Restrictions

1. Saudi Arabia

• Ban Level: 1 (Regulatory warnings)

• Date of Ban: 2018 warnings, no legal recognition.

• Issuing Department: Saudi Arabian Monetary Authority (SAMA) and Capital Market Authority.

• Reason for Ban: SAMA has issued warnings about risks associated with cryptocurrencies, citing lack of government supervision and potential negative consequences for traders.

• Future Outlook: Cautious approach continuing. Saudi Arabia adopts a risk-averse regulatory framework while not explicitly prohibiting cryptocurrencies.

2. Bolivia (Status Changed)

• Ban Level: 1 (Previously Level 3, now Regulatory Restrictions).

• Date of Ban: 2014 (original complete ban), June 2024 (policy reversal to regulated approach)

• Issuing Department: Central Bank of Bolivia.

• Reason for Ban: Originally cited risks to monetary stability and illicit activities. Policy shifted due to regional trends favoring regulation over prohibition.

• Future Outlook: Positive evolution. Bolivia now allows financial institutions to process crypto transactions through approved electronic channels.

• Additional Comments: Bolivia aligned itself with the Bitcoin friendly nation of El Salvador where Bitcoin is legal tender. The two nations signed a crypto memorandum to share regulatory expertise. It is likely that Bolivia will turn into a crypto friendly country soon if not already.

3. Russia (Complex Regulatory Status)

• Ban Level: 1 (Regulatory Restrictions).

• Date of Ban: Various restrictions since 2014, stance change in 2021, regulated use allowed in 2024.

• Issuing Department: Central Bank of Russia (CBR) and Ministry of Finance.

• Reason for Ban: Initially monetary control concerns, but Russia has shifted its stance, legalizing crypto mining and permitting digital assets for international payments to counter Western sanctions.

• Future Outlook: Becoming more permissive. In 2024, President Vladimir Putin signed new laws establishing a regulated framework for cross-border crypto transactions.

• Additional Comments: Russia’s stance against Bitcoin and crypto in general is confusing at times as the Russian authorities have a love/hate relationship with Bitcoin. For one, crypto use has allowed them to circumvent sanctions but on the other, it has allowed their residents a capital flight route.

Disclaimer: This comprehensive guide covers all major countries with significant Bitcoin restrictions as of August 2025. Cryptocurrency regulations evolve rapidly, we strive to update this list as changes occur.

The Legitimate Concerns Behind Bitcoin Bans

Most Bitcoin bans stem from genuine concerns rather than simple resistance to innovation. The political conditions and economic conditions of each nation varies significantly, resulting in their differing attitudes towards Bitcoin and crypto in general. Below are some of the actual considerations that affect how each nation perceives Bitcoin.

Financial Stability: Cryptocurrencies are volatile, this heightens the risk of financial bubbles and sudden market collapses that could undermine national financial stability.

Capital Flight Prevention: Countries with strict capital controls fear that open cryptocurrency markets could facilitate massive, uncontrolled capital outflows. For nations like China with yearly limits of $50,000 for purchasing foreign currencies, Bitcoin represents a way to circumvent these controls entirely.

Monetary Sovereignty: One of the core motivations behind crypto regulation is to safeguard the central bank’s ability to control monetary policy. The abandonment of a national currency in favor of an alternative currency such as Bitcoin, poses a real threat to certain nations.

The Effectiveness of Bitcoin Bans

Despite the legitimate concerns, the effectiveness of these bans varies dramatically. We know that underground usage of crypto can continue and thrive even in banned nations. Morocco consistently ranks high in crypto adoption polls despite their complete ban in 2017, while Nigeria ranked second globally for crypto adoption in 2024, with 90% of Nigerians surveyed expressing interest in crypto investments. This means that on top of legislation, tight enforcement is also needed in order to ensure that their Bitcoin ban remains effective; however, challenges abound.

Enforcement Challenges

The decentralized nature of cryptocurrencies makes them inherently difficult to eliminate entirely. Users in banned countries typically employ several workarounds:

• VPN usage to access foreign exchanges.

• Peer-to-peer trading (P2P) through messaging apps and informal networks.

• Cross-border transfers through crypto-friendly neighboring countries.

Economic Incentive to Bypass Crypto Bans

Enforcement becomes more challenging in countries facing currency devaluation or economic instability, as the incentive to circumvent crypto bans becomes even stronger. Turkish citizens turned to cryptocurrencies during the lira’s decline, while Afghans used crypto for remittances before the Taliban ban. These economic pressures often outweigh legal risks for users, causing them to outright ignore or even seek out avenues to circumvent these bans.

Conclusion: The Future of Bitcoin Bans

Bitcoin bans represent a fascinating intersection of technology, governance, and financial philosophy. While some restrictions stem from legitimate concerns about financial stability and consumer protection, others appear to be symptoms of governments struggling to adapt to technological change.

Current market trends suggest a gradual shift from prohibition to regulation. Like how many countries moved from banning the internet to regulating it, we’re seeing similar patterns with cryptocurrency. Countries that maintain complete bans may find themselves increasingly isolated from global financial innovation.

Most bans have proven only partially effective at best. China’s efforts to ban Bitcoin mining resulted in a global hashrate redistribution and renewed interest in Bitcoin mining across the board. The decentralized nature of cryptocurrencies makes them inherently difficult to eliminate entirely.

The future likely belongs to regulatory frameworks rather than outright bans. As Morocco’s experience shows, countries can move from prohibition toward creating comprehensive legal frameworks that balance innovation with consumer protection.

For individuals and businesses in the cryptocurrency space, understanding these restrictions remains crucial for compliance and risk management. However, the overall trajectory suggests that Bitcoin bans may eventually become historical curiosities rather than permanent fixtures of the global financial landscape.

This article is for educational purposes only and is not financial advice. Always consult with qualified professionals before making any financial decisions or investments in cryptocurrency. The legal status of cryptocurrencies can change rapidly, and readers should verify current regulations in their jurisdiction before engaging in any cryptocurrency-related activities.