Global Government Action Against Cryptocurrencies.

Cryptocurrency is a digital or virtual currency that is a medium of exchange. It is similar to real-world currency except that it doesn’t have any physical embodiment. The motive behind the creation of cryptocurrency is to allow all the users to transact money to anyone they want in seconds.

Cryptocurrency can be used for buying goods and services but uses an online ledger with cryptography to secure online transactions. It is secured by cryptography that makes it almost impossible to double-spend or counterfeit. One key point about cryptocurrency is that it doesn’t work using centralized control as a real-world currency. The prices are not set up by an individual entity & the user all around the world themselves set the price & trends for cryptocurrency.

Cryptocurrency faces criticism for several reasons that include the exchange rate volatility, use for illegal activities, and the vulnerabilities of the infrastructure in mining them. Countries have taken actions against cryptocurrency transactions and banned them within their territories. In some countries, there are legal actions taken in case of the use of Bitcoin or any other Crypto-Currency. The following are the actions taken by global governments against cryptocurrency recently:

Several countries such as the US, EU, Turkey, Ghana, Nigeria, Algeria, Egypt, Nepal, and India banned cryptocurrency trading. The chief of the EU’s central bank has condemned bitcoin as a highly speculative asset and associated it with money laundering. While, the treasury secretary of the US has said that cryptocurrency transactions are used mainly for illicit financing. The ban is due to the potential threat to the government’s directed monetary policy, bitcoin scams, and the environmental cost involved in mining bitcoin.

While Nepal banned cryptocurrency in 2018, the country has enforced laws against
cryptocurrency exchanges. It threatens to jail down and imposes fines on the people running cryptocurrency exchanges.

Cryptocurrency is legal in South Korea, but the country has banned privacy coins such as zcash (ZEC) and monero (XMR). The reasons for the ban are money laundering and cybercrime syndicates.

China has jumped into the list of countries banning crypto mining operations and ordering banks not to do business with crypto companies. The authorities have cancelled the company’s business registration, and all the financial and payments institutions are warned not to provide virtual currency-related services directly or indirectly. The country has kicked almost 90% of bitcoin miners out of the country.

The bank of International Settlements in Switzerland that is owned by the world’s central bank has warned launching a campaign against bitcoin. It has called it contrary to the public good and offering a substitute. It has hinted to launch a new challenge, declaring that cryptocurrency works against the public benefits. It means that after a big crash of bitcoin in May, the worries of bitcoin holders are not gone & the worse is yet to come.