Many countries have clear rules that allow people and businesses to use cryptocurrency. But some governments still see crypto as a threat to their economy or financial system. In the countries below, crypto is banned or heavily restricted. That means owning, trading, or using Bitcoin and other digital coins can be very risky, and in some cases illegal.
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/1. China
China has one of the strongest anti-crypto policies in the world. Since 2021, the government has banned crypto trading, mining, and exchange services for residents. Officials say private cryptocurrencies can harm financial stability and are risky for citizens. China continues to test its own digital currency (the digital yuan) but has closed down local crypto exchanges and services.
Even though crypto is banned, many people in China still trade through peer-to-peer platforms and VPNs. The government closely monitors internet traffic to restrict access to overseas crypto services, and banks are not allowed to support crypto businesses. This makes it very hard for ordinary users to legally buy or sell digital assets.
/2. Algeria
Algeria took a very strict stance on cryptocurrency as early as 2018. The law prohibits buying, selling, using, or holding any crypto assets, including Bitcoin and Ethereum. The government says this is necessary to protect the financial system and prevent fraud and money laundering.
Because of this complete ban, people in Algeria cannot legally use crypto for trade or investment. Banks and financial institutions are also barred from dealing with digital assets. Even though some underground trading might still happen, there is no legal protection for anyone involved in crypto.
/3. Bangladesh
Bangladesh also bans all cryptocurrency activity. The central bank has said that digital assets are illegal and warns people not to trade or use them. The government links crypto to money laundering, terrorism financing, and other financial crimes, and those caught can face fines or prison.
Despite the ban, Bangladeshis still trade crypto on informal peer-to-peer markets. But because the law is strict and the central bank does not support crypto, people do so at their own risk. There is no legal framework to protect users or exchanges, and penalties are serious.
/4. Egypt
In Egypt, crypto is strongly restricted and practically illegal. The Central Bank of Egypt does not allow banks or financial institutions to deal in cryptocurrency. Some Islamic authorities have also issued religious rulings saying Bitcoin transactions are haram (forbidden under Islamic law), adding cultural pressure against crypto use.
Even though some informal trading still happens, legal crypto services are not permitted. Banks and payment providers cannot offer crypto wallets or exchange services to customers. Because the financial authorities treat crypto as risky and unsupported, everyday use is effectively banned, even if some individuals still trade in private.
/5. Morocco
Morocco banned cryptocurrency transactions and trading way back in 2017. The central bank said digital money violated foreign exchange rules and could help with fraud or money crimes. Because of this, using or exchanging crypto openly is illegal.
Despite the ban, Morocco has one of the highest rates of peer-to-peer crypto trading in Africa, indicating strong demand even when it is illegal. Authorities have threatened fines or penalties, and the central bank has warned that all crypto transactions are forbidden unless new laws are passed.
/6. Nepal
Nepal treats all crypto activity as illegal. The Nepal Rastra Bank has banned buying, selling, mining, and owning crypto assets, and authorities have shut down exchanges and cracked down on traders. The government says cryptocurrencies pose financial stability risks and can lead to fraud.
Because of this total ban, anyone caught trading or holding crypto without permission can face serious punishment. There is no legal system to protect crypto users, and the government actively enforces these rules to prevent digital asset use.
/7. Afghanistan
Under Taliban rule, Afghanistan has banned cryptocurrency use and trading. Authorities closed crypto exchanges in cities like Herat and arrested operators when the ban was enforced in 2022. The government cites financial instability and fraud as reasons for the strict rules.
This ban has made it very difficult for Afghans to use crypto for cross-border payments or savings, even though digital assets were once used informally to move money in and out of the country. With no official framework, digital asset use remains risky and illegal.
Conclusion
In these countries, cryptocurrency is either illegal or highly restricted under strict laws. Governments often ban crypto to prevent financial instability, fraud, or money laundering, and to keep control over the national currency. People in these nations risk legal trouble, fines, or worse if they trade or use crypto openly.
Because laws can change quickly, anyone interested in crypto needs to check the latest local regulations before using crypto in these places. But as of 2025, the countries above remain some of the toughest environments for digital assets in the world.
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