Key Takeaways
Cryptocurrency has reshaped financial systems, offering new opportunities for individuals and businesses worldwide.
Its decentralized structure challenges traditional finance, providing an alternative that prioritizes financial autonomy.
Crypto also carries a deep ideological foundation rooted in decentralization, privacy, and international transactions. However, not all governments embrace this shift. Several countries still ban cryptocurrency, citing risks tied to economic stability, illicit activities, and market volatility.
This article examines ten nations where crypto remains prohibited in 2025, exploring the reasons behind these bans and the potential future of regulation in these countries.
China has enforced strict cryptocurrency restrictions since 2017, banning exchanges and later cracking down on mining and financial institutions handling crypto transactions.
Authorities cite risks to financial stability, fraud, and capital flight as key reasons for the ban. Underground trading remains active despite restrictions, with China ranking 20th in the 2024 Chainalysis Global Crypto Adoption Index.
At the same time, the country advocates central bank digital currency (CBDC) initiatives through its digital yuan pilot programs.
Cryptocurrency regulation in Egypt remains restrictive but not entirely prohibitive. The Central Bank of Egypt (CBE) has reinforced warnings and restrictions, yet some exchanges continue to operate, reflecting a complex regulatory landscape.
Financial and economic concerns drive the CBE’s stance:
Religious interpretations also influence Egypt’s position. Some Islamic scholars classify cryptocurrencies as haram (forbidden) due to their speculative nature. However, this remains a non-binding opinion, leaving individuals free to decide.
Despite restrictions, crypto interest persists, with many users turning to peer-to-peer transactions. This highlights the difficulty of regulating decentralized digital currencies.
Egypt’s regulatory approach continues to evolve as authorities weigh financial risks against potential benefits. Keeping track of updates is essential as policies may shift in the future.
Algeria bans cryptocurrency, citing risks to financial security and economic stability. The government prohibits ownership and transactions and warns about money laundering, terrorist financing, and threats to the regulated financial system. Despite strict enforcement, crypto adoption persists through unofficial channels.
Like Algeria, Bangladesh enforces a strict ban on cryptocurrency, citing risks to financial stability and monetary policies. The Bangladesh Bank first declared digital assets illegal in 2017, warning about illicit activities.
Authorities later reinforced restrictions, making violations punishable by fines and imprisonment. Despite the crackdown, crypto adoption continues, with Bangladesh ranking 35th in the 2024 Global Crypto Adoption Index.
Nepal has taken a strict stance against cryptocurrency, declaring it illegal and threatening financial stability. The Nepal Rastra Bank prohibits trading and use, citing fraud risks. Authorities actively crack down on crypto-related operations, including arrests of traders and unauthorized exchange operators.
Afghanistan banned cryptocurrency again in 2022 under Taliban rule. Again, the reason was financial instability and fraud concerns. Authorities shut down exchanges in Herat and arrested several operators, making crypto transactions highly risky. Before the ban, digital assets were a financial lifeline for many Afghans, used for remittances and wealth preservation amid economic turmoil.
Despite strict enforcement, some individuals continue using crypto discreetly, seeking alternatives to the struggling banking system. The decentralized nature of digital currencies makes complete eradication difficult, but users face legal threats.
The Taliban remains firm in restricting crypto, prioritizing financial control, and adhering to Islamic finance principles. The future of digital assets in Afghanistan is uncertain, with the potential for even harsher crackdowns or policy shifts depending on enforcement challenges and global regulations.
Morocco banned cryptocurrency transactions due to concerns about financial crimes and economic stability in 2017. Despite this prohibition, the country has seen significant underground adoption, consistently ranking among Africa’s top nations for peer-to-peer Bitcoin trading.
Moroccan authorities recognize the persistent use of digital assets and are shifting their stance. The central bank, Bank Al-Maghrib, has drafted a law to regulate crypto assets and is currently adopting it.
This move aims to balance innovation with financial stability and consumer protection. Additionally, the central bank is exploring the potential of a central bank digital currency (CBDC) to enhance financial inclusion.
Cryptocurrency’s decentralized nature challenges traditional financial systems, leading to conflicting regulations worldwide.
Some countries embrace digital assets, while others impose strict restrictions, creating a legal grey area. In these jurisdictions, enforcement is inconsistent, and users operate in uncertainty. Official bans often clash with underground adoption, making the future of crypto unclear.
For these reasons—along with recent policy changes and unique regulatory approaches—Bolivia, Iraq, and Russia deserve spots 8, 9, and 10. These countries either enforce or have enforced strict controls but have not eliminated cryptocurrency use, making them notable cases in the evolving global regulatory landscape.
Since 2014, Bolivia’s central bank prohibited using, trading, and owning digital assets, citing risks to monetary stability and illicit activities. However, in June 2024, it reversed its stance, allowing financial institutions to process crypto transactions through approved electronic channels.
Regional trends favoring regulation over prohibition drive this policy shift. Bolivia no longer counts as a strictly controlled or banned crypto market since authorities now allow regulated digital asset activity.
In 2017, Iraq’s central bank banned cryptocurrency transactions, citing financial crime risks, volatility, and consumer protection concerns. Banks, financial institutions, and payment service providers are prohibited from handling digital assets, making crypto inaccessible through official channels.
In 2018, the Kurdistan Regional Government’s Supreme Fatwa Board ruled against OneCoin, reinforcing Iraq’s cautious stance on digital assets.
Despite restrictions, informal crypto trading continues, as enforcement against individuals remains unclear. The government maintains strict controls, preventing financial institutions from facilitating crypto transactions.
In 2022, the Central Bank of Russia (CBR) proposed a complete ban on cryptocurrency transactions and mining, but the government rejected it, opting for regulation instead. Russia has shifted its stance on cryptocurrency, legalizing crypto mining—with some regional restrictions—and permitting digital assets for international payments to counter Western sanctions and diversify its financial system.
In 2024, President Vladimir Putin signed new laws, with provisions taking effect between September and November
The legislation establishes a regulated framework for cross-border crypto transactions, allowing businesses to use digital assets in trade while banning domestic crypto payments. The CBR oversees these transactions, ensuring state control over approved exchanges.
Additionally, plans for state-backed crypto exchanges in Moscow and St. Petersburg are underway, along with discussions on BRICS-based stablecoins and alternative payment mechanisms. These moves reflect a broader strategy to reduce reliance on the U.S. dollar, navigate sanctions, and integrate alternative financial systems into its economy.
Cryptocurrency bans continue to reflect geopolitical, economic, and financial concerns, with governments either enforcing strict controls or gradually shifting toward regulation. While some nations like Russia and Bolivia are adopting controlled crypto use, others like China, Egypt, and Algeria remain firm in their restrictions.
However, underground adoption persists in almost all banned jurisdictions, proving that decentralized digital assets are challenging to regulate completely.
The global approach to cryptocurrency remains fragmented, and future regulations will likely depend on financial stability, technological advancements, and international adoption and pressure. Countries will either integrate crypto into their economies through regulation or attempt to enforce stricter bans with limited success.
Staying informed about regulatory changes is crucial for crypto users, as bans and restrictions can shift rapidly in response to economic and political developments.
The effectiveness of bans varies. While they can limit access through official channels, the decentralized nature of crypto makes complete eradication difficult. Underground trading often persists. Yes, Bolivia is a notable example. They previously banned crypto but now allow regulated transactions through financial institutions. In some countries, religious interpretations, particularly within Islamic finance, influence the stance on crypto. Some scholars consider it ‘haram’ due to its speculative nature. How effective are cryptocurrency bans?
Have any countries reversed their stance on cryptocurrency bans?
How do religious beliefs influence cryptocurrency regulation in some countries?