Countries where cryptocurrencies are forbidden

Cryptocurrencies have developed from a technological experiment into a fully formed financial asset integrated into the global economy. Today, we use them not only for payments but also as a tactical tool for businesses and investors.

Despite their extensive adoption, the legal status of cryptocurrencies is inconsistent across jurisdictions. Some countries continue to impose full or partial restrictions on the circulation, storage, and mining of digital assets.

The motivation behind these restrictions is systemic. In some cases, it is connected with cultural or religious norms that forbid high-risk or anonymous financial transactions. In others, such measures form part of a deliberate policy aimed at protecting national monetary systems, controlling capital flows, and combating the shadow economy. Regulators in developed countries often consider decentralized assets as a threat to financial stability and the sovereignty of monetary policy.

Thus, legal status of cryptocurrency in such countries is as follows.

Who Needs to Be Aware of Crypto Restrictions

Financial companies, exchanges, and payment service providers. This information is essential for assessing regulatory risks, developing compliance policies, and restricting service availability in accordance with local regulations.
Businesses accepting cryptocurrency payments. Understanding prohibited jurisdictions helps structure payment options, exclude restricted countries, and reduce the risk of violating local laws.
Developers and owners of applications with crypto functionality. Knowledge of restricted jurisdictions allows for informed decisions regarding market distribution and access limitations.

Countries Where Cryptocurrencies Are Forbidden

China

Cryptocurrency trading and exchange activities are restricted. Regulators have officially confirmed that digital currencies are illegal in the country.
Bangladesh

Cryptocurrency transactions are subject to an official ban.
Algeria

The use, purchase, and issuance of cryptocurrencies are restricted at the legislative level.
Egypt

Cryptocurrency trading is forbidden. Banking operations involving digital assets are also restricted without special authorization.
Nepal

Cryptocurrencies are forbidden by law.
Afghanistan

Crypto-related activities have been restricted since 2021 following the change of government.
Cryptocurrency activity is partially restricted in Bolivia, Iraq, Morocco, Tunisia, Pakistan, and Qatar

In these jurisdictions, operations are either formally restricted or exist in a regulatory grey zone, often accompanied by strict banking restrictions and limitations on payment services.

How We Can Help

We provide:

Consulting on crypto-related business structuring, including assessment of a product’s legal status, analysis of applicable regulations, and development of a regulatory engagement strategy.
Legal and compliance risk mitigation, covering jurisdiction selection, corporate structure, nature of services, and use of digital assets.
Project planning support, including roadmap development, legal architecture design, identification of permissible markets, and documentation preparation.
Company incorporation and licensing, including corporate structuring, preparation of documentation packages, obtaining required approvals, crypto licenses, and related regulatory authorizations.

With in-depth knowledge of international law and extensive experience across multiple jurisdictions, Law&Trust ensures the security and regulatory sustainability of your business.

F.A.Q.

Is cryptocurrency ownership a criminal offense in all countries where it is forbidden?

No. In some jurisdictions, any crypto-related activity, including possession, is punishable. In others, only transactions or service provision are forbidden, while private ownership is not criminalized. The scope of restrictions depends entirely on the specific jurisdiction.

Can I launch a crypto project if users from forbidden countries may access the service?

Businesses are required to take reasonable measures to prevent access from restricted regions. Common tools include geoblocking, IP checks, KYC/AML filters, and registration restrictions. Failure to implement such measures may result in regulatory claims from the relevant authorities.

If cryptocurrencies are forbidden, does this mean it is impossible to operate a non-transactional business, such as IT development?

Establishing an IT company is generally possible. However, any activity involving crypto technologies, smart contracts, payments, or exchange services will be restricted. Jurisdictions with crypto bans are not suitable for projects that include crypto-related functionality.

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