It should be noted that the topic of banning interactions with digital assets was quite popular in 2021. First of all, it was due to the activism of China's leadership. In spring, officials banned the mining of cryptocurrency in certain regions of the country, and in autumn the authorities decided to ban interaction with digital assets for its citizens.

While officials have done this on a number of occasions before, this time the situation is more serious. In particular, many cryptocurrency companies have indeed stopped interacting with Chinese residents, well cryptocurrency exchanges have until the end of 2021 to do so. By the way, this particular feature could explain the recent Bitcoin collapses. According to experts, Chinese citizens are trivially forced to sell off their coins in order not to violate the law.


On the eve of the possible ban on investments in crypto was also talked about in Russia – it was reported by Reuters sources. However, as it turned out later, the possibility to invest in digital assets in the Russians will tentatively remain.

Where is crypto disliked the most?

Here’s a quote from GLRD mentioned in an article by news outlet Decrypt.

The 2018 report noted 8 jurisdictions with absolute and 15 jurisdictions with partial bans on cryptocurrencies. The new November 2021 version of the report now lists 9 jurisdictions with absolute and 42 with partial bans on digital assets.


Consequently, the number of countries that have turned their attention to the digital asset niche in one way or another has increased significantly during this time. However, only one country has made Bitcoin an official means of payment so far, and that is El Salvador.


Total and partial bans on cryptocurrencies in different countries on the world map

A total ban means that a country has made cryptocurrencies completely illegal on its territory. A partial restriction prohibits banks or other financial institutions from dealing with digital assets or offering services related to them. A partial cryptocurrency ban could also refer to restrictions on cryptocurrency exchanges operating in the country.

Among the nine countries with absolute bans are Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia. Of these, it was China's bans on all crypto activity that had the most negative impact on the crypto industry this year.

Fortunately, it’s almost impossible to ban Bitcoin entirely

Meanwhile, in Paraguay, the government is moving in exactly the opposite direction: this week, the Paraguayan Senate approved a cryptocurrency bill proposed back in July. The provisions, which define several key terms, including virtual assets and the requirement for cryptocurrency mining licences, will now be sent to the chamber of deputies for further discussion.

Senator Fernando Silva Facetti, the bill’s main proponent, said it had passed in the Paraguayan Senate after a long contentious debate. According to the senator, the law is also aimed at stimulating the growth of miners’ activities by using surplus electricity produced in the country.


We believe that ignoring or even banning cryptocurrencies on a national scale is not a good idea. Firstly, citizens will still be able to bypass exchanges and interact with digital assets if they want to. Secondly, such restrictions traditionally draw attention to a prohibited topic, which means that the effect is likely to be exactly the opposite.


Look for even more interesting things in our millionaires’ crypto-chat. There we will talk about other topics related to the blockchain and decentralisation industry.