Regulators of countries that fall into this category decided to completely prohibit turnover of cryptocurrency. Thus, legal status of cryptocurrency in such countries is as follows.
State bodies of Algeria are planning to finalize and adopt a law in 2018, and it would completely exclude any opportunities for carrying out any transactions with cryptocurrencies. Parliamentarians believe that cryptocurrencies are used primarily to conduct illegal transactions, such as financing of terrorism, purchasing property that is restricted/withdrawn from free civil circulation (drugs/weapons), and so on.
The Central bank of Bolivia imperatively prohibits transactions with any means of payment that are not issued, or are not controlled by the governments of the country.
Conducting any transactions with cryptocurrencies is illegal in Vietnam. Mining activity is banned in the country in the same way, and any deviations from previously mentioned rules are punished with extremely impressive fines. Moreover, repeated violations of above requirements can be punished with actual prison terms for perpetrators.
As early as February 2014, the Bank of Indonesia first came forward with a position stating that "bitcoin and other digital currency are not valid currency or payment instruments in Indonesia." Moreover, bans were introduced at the same time on carrying out transactions with cryptocurrencies for online stores, companies and in the sphere of banking services. The regulator also took the same position in a recent press release of January 13, 2018, again referring cryptocurrencies to unreliable assets. Moreover, this time representatives of the Bank pointed to the fact that such digital currencies are actively used for laundering money obtained through criminal means and for financing terrorism.
However, there were another measures on the part of regulator. The central bank is preparing new regulatory requirements, according to which any cryptocurrency transactions across the country can be banned.
In 2014, the Central Bank of Kyrgyzstan published a position according to which the only legal means of payment is the national currency som, and the use of cryptocurrency in own transactions is illegal.
In October 2017, the Bank of Lebanon issued an official statement, reporting that the regulator completely prohibits any and all operations with cryptocurrencies for citizens and business entities. Cryptocurrency as such was considered as a commodity with unjustifiably rising / falling value, that, accordingly, negatively affects economic stability in the state.
On November 20, the Foreign Exchange Office of Morocco, together with Al-Maghrib Bank, announced that any financial transactions with virtual currencies are a direct violation of Morocco's current legislation. They also urged individuals and legal entities to observe exchange rules in force in Morocco. On the other hand, the regulator does not refuse an opportunity to further soften its position on this issue.
In September 2017, the Bank of Namibia issued a statement on regulation of cryptocurrency, and noted that activities of cryptocurrency exchanges in the country are prohibited, and digital currencies themselves can not be a legal means of payment in the state.
The authorities of Nepal completely banned any transactions with cryptocurrencies by any persons and entities.
The Central Bank of Pakistan does not recognize and is not going to recognize cryptocurrency as a legitimate means of payment. From the regulator's point of view, cryptocurrencies are a convenient way to launder proceeds from crime and to finance terrorism, so the Central Bank made such a decision. Moreover, in order to verify compliance with AML/CFT requirements, the Federal Board of Revenue of Pakistan began to analyze transactions related to cryptocurrencies.
The government of Ecuador has banned cryptocurrency in general, and bitcoin in particular as early as 2014. Parallel to this, the Ecuadorian regulator tried to create a regulatory framework for issuing own cryptocurrency, however, neither cryptocurrency nor regulatory framework appeared. Future of cryptocurrency in Ecuador remains questionable.