Is Cryptocurrency Banned? A Global Overview of Crypto Regulation

What are Crypto Assets?

Crypto Assets (Cryptocurrency) are a type of decentralized digital currency built using encryption technology, with representative projects including Bitcoin, Ethereum, and others. It does not rely on central banks for issuance and is commonly used in payment, investment, and transfer scenarios.

Why do different countries have varying attitudes towards Crypto Assets?

Regulatory policies in various countries are based on economic, political, security, and tax considerations. For example, some countries are concerned that Crypto Assets may be used for money laundering or illegal financing, while others view them as innovative financial technology and actively develop related industries.

Does China prohibit Crypto Assets?

China’s stance on Crypto Assets is very clear: all Crypto Assets trading and mining activities are prohibited. Since the People’s Bank of China, in conjunction with multiple departments, issued the “Notice on Further Preventing and Handling Risks of Virtual Currency Trading Speculation” in 2021, domestic platforms have been shut down, and mining farms have been eliminated.

However, it is important to note that owning Crypto Assets is not illegal in itself, and blockchain technology as the underlying architecture is still encouraged to develop.

The regulatory situation of Crypto Assets in the United States

The United States has not banned Crypto Assets, but the regulations are extremely strict. The U.S. Securities and Exchange Commission (SEC) argues that most crypto tokens fall under securities and need to be issued in compliance. Exchanges such as Coinbase and Kraken are facing ongoing compliance pressures.

At the same time, the United States allows individuals to purchase, hold, and trade crypto assets, and an increasing number of institutions are participating in the Web3 and DeFi fields.

The policy attitudes of Japan, South Korea, and Singapore

• Japan is one of the first countries to issue regulations for Crypto Assets trading, requiring exchanges to register with the Financial Services Agency and comply with anti-money laundering regulations.
• In recent years, South Korea has strengthened regulations but has not prohibited them; investors must use real-name accounts for transactions.
• Singapore is known for its openness, managing licensing for encryption platforms through the Monetary Authority of Singapore (MAS), emphasizing user protection and anti-money laundering compliance.

Regulatory environment of European countries

The EU passed the Markets in Crypto Assets Regulation (MiCA) in 2023, aiming to establish a unified regulatory framework for the crypto industry. Countries like Germany and France allow the legal trading and custody services of digital assets, and investors can legally hold and trade them as long as they meet KYC requirements.

Which countries explicitly prohibit Crypto Assets?

The following countries explicitly prohibit or restrict the circulation and use of Crypto Assets:

• China
• Algeria
• Morocco
• Afghanistan
• Bangladesh
• Iraq
• Egypt (with religious restrictions)

These countries often adopt a strict stance against Crypto Assets due to political or financial system stability factors.

Summary: Regulation is not an outright ban.

“Are Crypto Assets banned?” does not apply to the global context. In most countries, Crypto Assets are subject to certain regulations but are not banned. Investors should choose compliant platforms and methods to participate in the crypto economy according to the laws of their own countries.