Crypto regulation continues to evolve dramatically across the globe, with some nations embracing digital currencies while others implement complete bans on Bitcoin and similar assets. Despite cryptocurrency’s growing mainstream adoption, numerous countries have established strict prohibitions, citing concerns about financial stability, consumer protection, and illicit activities
For investors and enthusiasts wondering “is crypto legal in US, UK, Pakistan” and other nations, the answer varies significantly by jurisdiction. While countries like El Salvador have adopted Bitcoin as legal tender, others have taken the opposite approach. The crypto regulation 2025 landscape reveals several nations maintaining comprehensive bans, effectively criminalizing the possession, trading, and mining of cryptocurrencies. Furthermore, these regulatory positions aren’t static—they’re constantly shifting as governments reassess digital assets’ role in their financial systems.
This article examines the countries with the most stringent anti-cryptocurrency measures in place, exploring their legal frameworks, enforcement mechanisms, and the reasoning behind their prohibitive stances.
China: The most comprehensive Bitcoin ban
China stands as the poster child for stringent crypto regulation, implementing what many consider the world’s most comprehensive Bitcoin ban. Initially targeting specific crypto activities, the Chinese government has progressively tightened restrictions until reaching a complete prohibition.
Ban on trading, mining, and exchanges
The Chinese government began its crackdown in 2017 by banning initial coin offerings (ICOs) and ordering the closure of domestic cryptocurrency exchanges [1]. However, this was merely the opening salvo. The decisive blow came in September 2021 when the People’s Bank of China (PBOC) declared all cryptocurrency transactions illegal, effectively prohibiting digital tokens such as Bitcoin [2].
This sweeping ban encompasses multiple activities including:
- Exchanging legal tender for virtual currencies or vice versa
- Trading between different cryptocurrencies
- Providing information and pricing services
- Issuing tokens to raise funds
- Trading virtual currency derivatives [3]
By May 2025, the PBOC expanded these restrictions further with a comprehensive ban on all cryptocurrency activities, including individual ownership, with the decree taking effect June 1, 2025 [4]. The Chinese government cited concerns about financial stability, energy consumption, and money laundering risks as primary motivations [5].
Crackdown on foreign platforms
China’s regulatory reach extends beyond its borders. Notably, the government explicitly banned overseas virtual currency exchanges from providing services to mainland residents via the internet [2]. Nevertheless, despite these strict prohibitions, underground crypto activity persists.
Between July 2022 and June 2023, the Chinese crypto market recorded an estimated $86.40 billion in raw transaction volume, surpassing Hong Kong’s $64.00 billion [6]. Many Chinese investors continue accessing foreign platforms like Binance and OKX through VPNs or over-the-counter channels, using payment platforms such as Alipay and WeChat Pay to convert yuan into stablecoins [6][7].
Impact on global mining operations
Before the crackdown, China dominated Bitcoin mining globally. In September 2019, China accounted for 75% of the world’s Bitcoin energy use [2]. The subsequent ban triggered a massive exodus of mining operations.
By April 2021, China’s share had fallen to 46% [2], and after the June 2021 mining ban, the decline accelerated dramatically. This shift redistributed mining power worldwide, with many operators relocating to Kazakhstan, where mining operations briefly consumed 7% of the country’s energy [5].
Subsequently, the United States emerged as the new Bitcoin mining superpower, accounting for over 40% of the world’s Bitcoin hashrate by 2023 [5]. This geographical diversification represents a significant transformation in Bitcoin’s operational structure, reducing China’s once-dominant influence on the cryptocurrency’s infrastructure.
Algeria: Total prohibition of crypto use
Among North African nations, Algeria enforces one of the strictest cryptocurrency prohibitions globally, maintaining a comprehensive ban on all digital currencies. Since 2018, the Algerian government has taken an uncompromising stance against Bitcoin and other cryptocurrencies, placing it among the handful of countries with absolute crypto bans.
Legal framework and penalties
The foundation of Algeria’s crypto prohibition stems from Article 117 of the Finance Law for 2018 (Law No. 17-11), which explicitly forbids the purchase, sale, use, and possession of virtual currencies [8]. This legislation, which came into effect on January 1, 2018, classifies virtual currencies as digital assets and declares them illegal financial instruments [9].
Unlike countries with partial restrictions, Algeria’s ban encompasses all cryptocurrency activities without exception, including:
- Trading and exchanging digital assets
- Mining operations (personal or commercial)
- Cryptocurrency payments and transfers
- Possession of wallets (local or foreign)
- NFTs and other digital collectibles
The penalties for violating these prohibitions are severe, with offenders facing substantial fines, asset confiscation, and potential criminal prosecution [10]. Even using cryptocurrency wallets abroad can result in legal consequences if traced back to Algerian citizens [9].
Government stance on digital currencies
The Algerian government maintains this hardline position primarily due to concerns about financial security, economic stability, and the potential for money laundering and terrorist financing [11]. Consequently, authorities actively monitor both traditional banking channels and peer-to-peer platforms for signs of cryptocurrency transactions [10].
As part of enforcement efforts, Algerian banks systematically block any transfer transactions related to cryptocurrencies, effectively cutting off citizens from legal avenues to engage with digital assets [9]. Additionally, the Direction Générale des Impôts (DGI), responsible for tax administration, has established no framework for digital assets specifically due to their illegal status [10].
By 2025, Algeria shows no signs of softening its stance. The government has put forth no formal legislative proposals to amend or rescind the crypto ban [10]. This rigid position has effectively isolated Algeria from regional fintech developments as neighboring North African countries begin exploring more progressive approaches to digital finance [9].
At the same time, the prohibition has created unintended consequences. The ban has driven cryptocurrency activity underground, with some Algerians reportedly still trading through peer-to-peer platforms and holding digital assets despite the risks [9]. Furthermore, the restrictions have prompted an exodus of blockchain talent as professionals seek opportunities in more crypto-friendly jurisdictions [12].
For Algerian citizens and businesses, the message remains clear – all cryptocurrency activity is prohibited, with no exceptions or legal pathways available under current regulations.
Morocco: Strict enforcement against crypto
Morocco implemented one of North Africa’s most stringent cryptocurrency bans in 2017, maintaining a hardline stance even as underground usage continues. Following a declaration by the Foreign Exchange Office, cryptocurrencies became an explicitly prohibited means of payment, with authorities citing concerns over monetary sovereignty and financial stability.
Ban on transactions and holding
In November 2017, Morocco’s Foreign Exchange Office, alongside the central bank (Bank Al-Maghrib), issued a decree outlawing all cryptocurrency transactions [13]. This comprehensive prohibition specifies that:
- Only payment methods officially approved by the central bank are legal
- Transactions must occur exclusively through authorized intermediaries
- All cryptocurrency-related activities violate foreign exchange regulations
- Violations are subject to substantial penalties and fines [13]
The enforcement of these restrictions has been notably severe. In a high-profile case, a 21-year-old French citizen received an 18-month prison sentence plus a €3.4 million fine for purchasing a Ferrari with Bitcoin worth €400,000 [14]. The individual was charged with “fraud” and “payment with foreign currency on Moroccan territory,” illustrating Morocco’s zero-tolerance approach [14].
Warnings from financial authorities
Although 2.4% of Morocco’s population continues to own and trade cryptocurrencies—the highest rate in North Africa—financial regulators have consistently reinforced their prohibitive stance [15]. In April 2022, a joint statement from Morocco’s Central Bank, Foreign Exchange Authority, and Capital Market Authority urged citizens to comply with existing regulations [16].
The authorities emphasized several key concerns:
- High volatility and lack of consumer protections
- Potential use in money laundering and criminal financing
- Threats to economic stability and the local currency
- Risk of foreign exchange outflows through virtual currency trades [16]
Interestingly, Morocco appears to be reconsidering its position. By late 2024, Bank Al-Maghrib announced preparation of a draft law to regulate cryptocurrencies, acknowledging that despite the ban, “the public continues to use them underground, circumventing restrictions” [17]. This potential regulatory shift suggests Morocco may be moving toward controlled legalization rather than prohibition, possibly including a 15-30% capital gains tax structure for 2025 [18].
Bangladesh: Harsh penalties for crypto activity
In South Asia, Bangladesh maintains one of the region’s strictest approaches to digital assets, officially declaring cryptocurrencies illegal through its existing financial regulations. Since 2017, Bangladesh Bank has actively warned citizens against trading in cryptocurrencies, citing potential violations of multiple laws [19].
Anti-money laundering laws applied to crypto
Bangladesh’s crypto regulation framework hinges primarily on three key pieces of legislation: the Foreign Exchange Regulation Act of 1947, the Anti-Terrorism Act of 2009, and the Money Laundering Prevention Act of 2012. These laws, though not explicitly created for digital currencies, provide the legal basis for the country’s prohibition [19][20].
The Bangladesh Bank has made it clear that online transactions with unnamed or pseudonymous individuals through cryptocurrencies may violate these regulations [19]. Essentially, the government considers Bitcoin and other cryptocurrencies unauthorized payment methods that fail to conform to the country’s legal financial framework.
Penalties for violating these laws can be severe:
- Imprisonment up to 7 years for money laundering offenses [21]
- Fines of up to BDT 10 million (approximately $92,000) [21]
- Additional administrative penalties including restrictions or revocation of business licenses [21]
Enforcement actions and arrests
Bangladeshi authorities have conducted numerous raids resulting in high-profile arrests throughout the country. In 2023, the Detective Branch arrested three individuals in Bogura for cryptocurrency trading, with investigations revealing transactions worth Tk 12.78 crore (approximately $1.17 million) over three years [6].
Moreover, the Rapid Action Battalion (RAB) has been particularly active in enforcement. In one case, they arrested four individuals including Hamim Prince Khan, identified as the mastermind behind a cryptocurrency trading operation. Investigators discovered that Hamim’s virtual wallets had processed transactions worth Tk 15 million in just one and a half months [22].
Other notable cases include the arrest of two individuals in Keraniganj who allegedly conducted over 42,712 successful cryptocurrency transactions worth approximately Tk 18-20 crore through various crypto platforms [23]. Offenders are typically charged under the Digital Security Act, Anti-Money Laundering Act, or foreign exchange regulations.
Interestingly, Bangladesh Bank informed the Criminal Investigation Department that merely owning cryptocurrency is not itself punishable, but using it for money laundering, terrorist financing, or violating foreign exchange regulations constitutes a prosecutable offense [24].
Nepal: Zero tolerance policy on Bitcoin
Nestled in the Himalayas, Nepal maintains an adamant stance against cryptocurrencies, enforcing one of the most comprehensive bans in Asia. The Nepal Rastra Bank (NRB), the country’s central bank, officially outlawed Bitcoin and all virtual currencies in 2017, establishing a legal framework that leaves no room for digital asset activities within its borders.
Complete ban on use and mining
Nepal’s prohibition began on August 13, 2017, when the NRB issued a notice declaring “all transactions related to or regarding bitcoins are illegal” [25]. This ban derives its authority from multiple laws, including Section 12 of the Foreign Exchange (Regulation) Act of 1962 and the Nepal Rastra Bank Act of 2002 [26].
Throughout 2021-2022, the government expanded and reinforced these restrictions through multiple notices. On January 23, 2022, the NRB consolidated its position by declaring that “all kinds of activities related to Virtual Currency and Cryptocurrency are illegal in Nepal” [26]. This comprehensive prohibition extends to:
- Trading, investing, and transacting in cryptocurrencies
- Mining operations of any scale
- Taking membership in crypto platforms
- Ownership, transfer, and mining of NFTs and stablecoins
- Decentralized Finance (DeFi) participation
Penalties for violations are severe. Offenders face fines up to three times the transaction amount, with the foreign exchange involved being confiscated [26]. For transactions exceeding ten million rupees (approximately $76,000), additional imprisonment for up to three years may be imposed [26]. Failure to pay fines can result in up to four years imprisonment [26].
Recent government statements
Presently, enforcement efforts have intensified. The Nepalese Telecommunications Authority warned internet service providers on January 8, 2023, to block “websites, apps, or online networks” related to cryptocurrency or face legal consequences [2].
Meanwhile, the Financial Intelligence Unit has identified growing crypto-related fraud in the country and proposed stricter regulations alongside transaction monitoring [4]. Accordingly, Nepalese police have arrested at least seven individuals for allegedly engaging in Bitcoin trading activities [4].
Effectively, the government remains committed to its zero-tolerance approach, even as debates emerge about Nepal’s hydropower resources potentially offering advantages for sustainable mining [27]. Currently, no cryptocurrency exchanges operate legally in Nepal, with the country maintaining its position as one of the strictest crypto regulation environments globally in 2025 [28].
Bolivia: Long-standing ban on digital currencies
For nearly a decade, Bolivia represented a rare case in Latin America as one of the region’s most stringent crypto opponents. Yet, in a remarkable policy reversal, the country has recently pivoted from prohibition toward regulated acceptance, creating an instructive case study in evolving crypto regulation.
Central Bank resolutions
Bolivia’s cryptocurrency prohibition began in 2014 when the Banco Central de Bolivia (BCB) explicitly prohibited the use of any digital asset not issued by the Bolivian government [29]. This decisive stance aimed at:
- Protecting the national currency (Boliviano) from depreciation
- Preventing illicit financial activities, including money laundering
- Maintaining control over monetary policy
Throughout the years, the central bank repeatedly reinforced these restrictions. In 2020, Board Resolution N°144/2020 reaffirmed that cryptocurrencies were not permitted for transactions, trading, or investments [29]. Subsequently, in 2022, the BCB explicitly prohibited the banking sector from facilitating any cryptocurrency transactions, effectively preventing financial institutions from supporting crypto-related activities [29].
The landscape changed dramatically in June 2024 when the BCB officially lifted its cryptocurrency ban through Board Resolution N°082/2024 [30]. This historic reversal authorized financial institutions to conduct cryptocurrency transactions through regulated channels, though cryptocurrencies still aren’t recognized as legal tender [31]. Following this regulatory shift, transaction volumes quickly reached USD 430.00 million across more than 10,000 individual operations [32].
Public awareness campaigns
Alongside regulatory changes, the Bolivian government launched comprehensive educational initiatives. Under its Economic and Financial Education Plan, the central bank created awareness programs to inform the general public about potential risks associated with cryptocurrencies [33].
These campaigns focused primarily on:
- Teaching people about cryptocurrency basics and operational mechanisms
- Warning about potential scams and fraudulent schemes
- Explaining risk management strategies for responsible digital asset use [34]
Currently, the government is developing a “comprehensive regulatory framework for financial technology companies” that aligns with international standards set by the Financial Action Task Force of Latin America (GAFILAT) [32]. This balanced approach represents a significant departure from Bolivia’s previous hardline stance, effectively ending what was once considered among Latin America’s most comprehensive cryptocurrency prohibitions.
Egypt: Religious and legal opposition to Bitcoin
Egypt presents a unique case in the crypto regulation landscape, combining both religious edicts and strict legal prohibitions. The North African nation’s opposition to cryptocurrencies stems from a distinctive blend of Islamic religious rulings and comprehensive banking laws, creating one of the most inhospitable environments for digital assets globally.
Fatwas and legal bans
In December 2017, Egypt’s Grand Mufti Shawky Ibrahim Allam issued a fatwa (religious decree) declaring cryptocurrencies haram (forbidden under Islamic law) [35]. This religious ruling specifically targeted Bitcoin and similar digital currencies, deeming them incompatible with Islamic principles. The fatwa emphasized several concerns, including that cryptocurrencies promote “fraudulence, lack of knowledge, and cheating” [36].
First thing to remember, the Grand Mufti’s declaration went beyond general warnings, asserting that cryptocurrencies negatively impact “the economy in general as well as market equilibrium” [35]. His ruling specifically described crypto as resembling gambling due to dramatic price volatility and warned that it could undermine state-issued currency [35].
The Fatwa House reinforced this position, stating that “Bitcoin is a laundering of forbidden money” and that crypto trading results in “loss of rights and legal violations” [37]. Important to realize, this religious prohibition preceded and likely influenced subsequent legal bans.
In 2020, Egypt codified its opposition through Law No. 194/2020 (the Central Bank and Banking System Law), which explicitly prohibits issuing, trading, or promoting cryptocurrencies without prior approval from the Central Bank of Egypt [38].
Central Bank enforcement
The Central Bank of Egypt (CBE) has issued multiple warnings against cryptocurrency since 2018 [39]. Indeed, these warnings have grown more forceful over time, with recent statements emphasizing that “no license has ever been issued” for crypto activities [40].
In September 2022, the CBE renewed its warnings, citing concerns about “high fluctuations, significant price volatility” and crypto’s potential use in “financial crimes and electronic piracy” [5]. The bank emphasized that cryptocurrencies lack the “official governmental guarantee” that protects users of state-issued currencies [5].
Penalties for violations are severe, including imprisonment and fines ranging from EGP 1 million (approximately $51,334) to EGP 10 million (approximately $513,337) [41]. The CBE explicitly stated that Egyptian monetary dealings are limited exclusively to official currencies approved by the central bank [41].
As of 2025, Egypt maintains its comprehensive prohibition on all cryptocurrency activities, with no signs of regulatory relaxation on the horizon [42].
Conclusion
The global cryptocurrency regulatory landscape reveals significant contrasts between jurisdictions maintaining hardline bans and those evolving toward measured acceptance. China stands as the frontrunner in comprehensive prohibition, effectively criminalizing all aspects of cryptocurrency activity while driving mining operations to relocate worldwide. Similarly, Algeria, Nepal, and Bangladesh enforce total bans with severe penalties, including substantial fines and potential imprisonment for violators.
Despite strict prohibitions, underground crypto markets continue to thrive across these nations. Morocco exemplifies this paradox, maintaining harsh enforcement while acknowledging that 2.4% of its population still engages with digital assets. This recognition has prompted Moroccan authorities to consider a regulatory framework rather than maintaining outright prohibition.
Bolivia’s dramatic policy shift offers perhaps the most compelling evidence that crypto regulation remains fluid. After nearly a decade of stringent prohibition, Bolivian authorities pivoted toward regulated acceptance in 2024, resulting in hundreds of millions in transaction volume within months.
Egypt represents a unique case where religious declarations intertwine with legal frameworks, creating dual barriers against cryptocurrency adoption through both Islamic fatwas and banking laws with substantial penalties.
Undoubtedly, these regulatory positions will continue evolving as governments reassess digital assets’ role in their financial systems. Crypto enthusiasts and investors must therefore remain vigilant about jurisdictional differences when navigating this complex regulatory environment. The coming years will likely witness additional nations reconsidering their prohibitive stances as cryptocurrency adoption grows worldwide and regulatory frameworks mature, though certain countries may maintain their bans due to financial stability concerns, consumer protection issues, or political factors.
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