Taking a look at why Crypto is banned in many countries.
The latest addition to the list of countries driving a hammer into crypto is Nigeria. The CBN ordered Nigerian banks to shut accounts and terminate facilitation of any type of crypto transactions. This followed with Binance having to suspend deposits in Nigeria.
Nigeria is yet another country that very recently joined the list. Along with the likes of Afghanistan, Bangladesh, Algeria and many more. India, too, is revising its stand on cryptocurrency.
However, it is important to note that some countries do not have a ban on cryptocurrency, but do not officially recognize them. That means, you can hold and trade crypto, without legal repercussions, but you will not be provided an legal or state level aid with it since they are classified as "unregulated".
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So why do countries impose a ban on crypto?
It seems to me that most of the bans come from the little understanding about cryptofinance the country's personnel posses.
Albeit the major reason may be how difficult it is to impose a tax on crypto holdings and earnings.
There is a "fear factor" involved with crypto. It is difficult, not impossible, to regulate and taxes can be a huge challenge.
Not to mention, the history of cryptocurrency is a solid reason to scare the governments. Silk road & dark web market were a prominent figure, back in the day, linked to cryptocurrency and their use cases.
The fact that it backs criminals, tax fraud, money laundering, etc., is a key reason to make governments hesitant to give cryptocurrency some leverage.
WannaCry was another prominent historical event in the cryptoverse that stands as a speedbump.
The security of people's money is at risk. Having a virtual wallet with a load of valuable coins inherently increase the risk of a raised cybercrime spree in the country. As more goes online, the country becomes susceptible to cybercrime targeting.
Lets throw out the sugar coating.
My stern believe is that its all a "Hi, I am a TSA agent, and you are brown. I am going through your underwear for your safety." kinda thing.
The big reason why some countries do not want to accept crypto is because it poses a threat to the well established financial institutions and banking system. Which cater to a specific group of people.
As crypto provides power to people, and is traditionally decentralized, it shakes the floor under the traditional banking system making the big boys feel a little vulnerable.
Crypto allows the people to disconnect from the regular banks and carry out their transactions independently, is that the kicker?
With most of the countries slowly inclining towards adopting crypto into their systems, it makes the disbelievers look like a guy in new balances watering the yard when it is raining.
The dark side of crypto has long been overshadowed by the good sides of it. Crypto is less risky today, to the people's investments, than it was 3 years back because of the abundantly available information. As the technology gets widespread, regulations are being designed tailored to the cryptoverse.
As long as you have a good idea what you are up against, crypto doesn't pose a threat as it used to. It is, after all, the next step of evolution to the world's currency system.
Barter > Gold > Metal coins > Paper > Plastic Money > Electronic Money > Cryptocurrency
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In the case of Nigerian, I will say the political class is only trying to meddle. We've seen this pattern in different sectors in the country where the government or its agencies kills a business only to enforce theirs. They want to control but they cannot have it and this ban will only make crypto more lucrative for many.
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I believe the same pattern follows most countries that impose a strict ban on crypto. The opportunity for giving the power to people will only diminish the monopoly they have created and put a hole in their pockets.
I do not see any other reason why.
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Great article !!! Sorry for the people of Nigeria and the other countries where cryptocurrency is prohibited. People were deprived of significant opportunities.
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YES, I agree. Crypto is the best step for most countries to develop the situation. The ban is only detoriating the situation and depriving the country from the next big tech development.
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It was in May 2020 if I am right when Supreme Court of India Overruled RBI's (Reserve Bank Of India) judgement on ban on cyrptocurrency.
It argued that though there was no formal ban on cryptocurrencies under any law in existence in India, it had consistently been warning all those dealing with virtual currencies of the risks inherent in them. (SOURCE: Economic TImes)
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I think the warning is acceptable. Crypto can be very damaging if not done right. It still isn't a reason to impose a ban.
I'd argue the stock market is more risky. FOREX is even more dangerous.
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I agree. And even though i am on crypto I don't really know how to take my money out. So gotta find a way to that too.
I was thinking that was a bit naive but then you started the real discussion, glad you made it hehe.
Some countries are taking the shortcut ban option but they are actually shooting themselves in the foot.
Others are bringing regulations and taxation big time.
Really curious and worried how far this could go. Just hope mass adoption will trigger a tsunami that no gov will be able to handle.
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gotta ease into it, amirite? ;)
I am all for taxation and regulations. Since, it will be the first step to adoption. The way crypto is designed, it will eventually be free of shackles by itself in time.
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Haha yes smart move.
Even if I hate taxation systems I have to agree that this is the way for mass adoption. At least a much better way than simple ban like we can see in some countries.
And you're correct, the way it's designed, it will bring freedom sooner or later !
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Hope you guys will be able to get crypto on your wallets and ear through Hive & tokens like LEO. I think you could try cloud mining contracts to get crypto on your hands too.
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What are some of the cloud mining contracts? I'd really like to look at some options. Sounds very feasible to a non techy like myself.
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like the whole bank system for example or the politicians aren't back criminals, or are criminals themselves...
exactly and they also want to for people to remain poor and to take advantage of them.
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The rich get richer, I guess.
We saw the same ridiculous tactics with the $gme situation. When the big guns are profiting, it is fair game. As soon as the layman catches up, all hell breaks loose.
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This is a normal thing because many Country still can't control cyber crime..
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I do not think cybercrime would be such a huge issue. Look at how many people hold crypto around the world, and how many of them fall victim to various attempts?
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I really do hope they don't put their dirty hands in Crypto here in Venezuela. I really feel for Nigerians.
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