Bans on Bitcoin would be a major deal, and would require lots of discussion. Arguments for and against such a move would last for years. Fortunately, no one is advocating for a Bitcoin ban at the moment, and there is little risk of one happening in the near future. But if Bitcoin was to become banned, who would benefit?
Attempts to ban Bitcoin are unlikely to succeed, however, because governments cannot directly control the use of this currency. For one, such attempts would be expensive and would cause a huge collapse in the price of Bitcoin. Secondly, governments would lose huge amounts of tax revenue. These losses are already large, but are likely to increase as the Bitcoin industry grows and the price increases. Furthermore, a Bitcoin ban would require a massive shift in government legislation.
While the Central Bank’s proposals are unlikely to become law, they are a major step in the right direction. Several other agencies in Russia, including the Federal Tax Service and Finance Ministry, are already regulating the crypto-market. Among these agencies, only the Central Bank has been insistent on a complete ban. The Finance Ministry wants to regulate the flow of funds from crypto assets to traditional assets, while the Federal Security Services are interested in preventing unqualified investors from using digital currency.
In addition to the United States, countries like Algeria and Bangladesh have banned cryptocurrency transactions. Similarly, the Central Bank of Bangladesh has warned residents against providing assistance in cryptocurrency, warning of the financial and legal risks. Many countries, including Egypt, have also banned their use. This is a clear warning that cryptocurrencies are not a good investment option.
The EU and Sweden have met virtually in November 2021 to discuss the issue of a possible Bitcoin ban. However, the European Commission redacted the names of the speakers in the meeting to protect the ongoing decision-making process. As a result, the European Commission is still considering an outright ban. There is no certainty in the future of the crypto market, but it does look like there’s one way to prevent the cryptocurrency from taking over the world.
The European Parliament has rejected a Bitcoin ban, but has voted to regulate the mining of PoW cryptocurrencies. This legislation, which is part of the Digital Finance Strategy of the European Union, will still move forward in future years. It was previously amended to eliminate a controversial passage, but lawmakers have rejected this amendment.
China has also tried to ban Bitcoin. However, the supreme court ruled that the ban is unconstitutional, but legislators are planning to reinstate it in 2020. The ban would criminalize mining, possession, and trading. While it may be politically unpopular, the Chinese government has been a leading player in Bitcoin mining since its emergence.
