Cryptocurrencies have steadily made their way to the headlines in recent years. The idea behind owning digital assets, decentralized in nature, has appealed to several investors globally. But of course, a lack of central administration within these assets has led to concerns, perhaps unjustified, such as the infamous cryptocurrency ban in countries such as China.
The imposition of such bans can also lead to substantial fluctuations in cryptocurrency prices.
Currently, only ten countries have either deemed crypto as ‘illegal’ or placed heavy restrictions on them as of this writing. It’s intriguing, nonetheless, to know if cryptocurrencies can be genuinely ‘banned’ from any country. Or are they something that our world leaders will have to give into sooner or later?
Why Do Countries Ban Crypto?
Being one of the most generic questions in every investor’s mind, the reasoning behind banning crypto is a topic of much debate.
Decentralization, volatility, and scams are some of the main reasons for governments to ban crypto.
We should also note that governments are rather strict regarding their nation’s currency or financial institutions (such as banks) being potentially replaced by anonymous digital currencies.
Governments that aren’t too enthusiastic about crypto and their utility, mainly place a ban or stringent regulations on trading them. In countries such as India, cryptocurrencies are legal but may be regulated by the central government in the future.
Can crypto be banned from any country?
Over to the real question, can cryptocurrencies like Bitcoin be banned from countries?
The answer is dependable.
Depending on the country, authorities can apply the whole ‘cryptocurrency ban’ idea to their respective nations.
As of now, countries like China and Egypt have entirely red-flagged these digital assets in their regions.
That means citizens cannot engage in buying/selling, transactions or utilization of crypto assets. What’s interesting, however, is the fact that countries such as Egypt, where a cryptocurrency ban is in order, have citizens who still hold crypto.
VPN is the main bridge between them and crypto, of course.
If we refer to banning crypto as ensuring no one can buy/sell (or even access crypto), then — no, there’s not a single country that can genuinely ban crypto. This is evident since anyone with a software-defined radio (SDR) dongle and antenna can access the Bitcoin blockchain through the Blockstream satellite in private.
Another scenario that we can witness is, crypto being entrenched into a country’s economy, ruling out the possibility of being banned. The U.S is a good example of this.
As of now, the United States cannot practically impose an immediate ban on crypto since American companies are billions deep into Bitcoin. An immediate ban would not be short of a tragic economic loss for the country.
Marshall Heyner, CEO of Metal, a payment platform, stated that Bitcoin is too deep-rooted within the financial system of the United States to be banned.
Crypto is the next step towards financial freedom
Blockchain technology’s most famous application is cryptocurrency. In a span of a few years, crypto has taken over the world with its promising solutions.
Another strong driving force for it is providing a better alternative to traditional financial infrastructures present today. Currently, most of these digital coins are competing with large financial institutions by identifying their loopholes.
Previously, people had no choice but to be affiliated with a bank to perform transactions. Today, about 1.7 Billion of the world’s population remains unbanked. That’s around a quarter of the entire globe with no back accounts.
Blockchain facilitates transactions (via crypto) to occur anonymously without requiring a third party or intermediate bank services. This is a revolutionary feature for people to transfer or receive assets with powerful security layers seamlessly.
In short, cryptocurrencies are the medium of facilitating transactions along with giving critical applications like Dapps and IoT solutions.
These features even extend to providing blockchain diplomas and credential verifications to firms.
Giottus as a Crypto Exchange
Giottus is India’s most trusted and forefront crypto exchange. With the best security protocols, ease of use, and fast transactions, and KYC, Giottus is home to every Indian investor looking to buy crypto.
To conclude, a cryptocurrency ban cannot be imposed worldwide. The entire procedure is not only tricky but also partially impractical today due to the reasons mentioned above.
Hence, what one can expect in the future is regulation on crypto trades. In addition, top cryptocurrencies like Bitcoin have robust foundations that increase their utility and purpose of usage. Blockchain technology certainly is the latest innovation that is being widely adopted by leading sectors and companies globally.