Answer · confidence: partial
Which countries totally banned bitcoin, and which let people buy and keep it?
Research question: Which countries have banned bitcoin trading outright, and which have made it legal to buy and hold?
The records show that Afghanistan banned trading in cryptocurrencies under the Taliban 3, and Nigeria's Central Bank prohibited dealing in cryptocurrencies and facilitating payments for crypto exchanges 4. In contrast, El Salvador made bitcoin legal tender 10, and Uzbekistan legalized crypto trading and mining 9. Additionally, the Philippines and Denmark allow cryptocurrency use and trade under a restrictive approach 5, while Kyrgyzstan permits bitcoin to be bought, sold, and traded as a commodity 6. The most recent specific fact provided is from August 2022 3.
Checked 2026-10-13. Only documented and supported facts are used.
Dig deeper on this questionSources
[1] supported
Some countries have imposed rigorous restrictions or banned the use or trade of cryptocurrency, though the document does not name them.
"Certain countries have imposed rigorous restrictions or banned the usage or trade of cryptocurrency."Comparative Review of the Regulatory Framework of Cryptocurrency in Selected Jurisdictions (2022)
[2] supported
Some national jurisdictions have responded to cryptocurrencies with legislative prohibitions or restrictions, while others have signaled approval of their transactional and functional aspects.
"with some signaling approval of the general transactional and functional aspects of cryptocurrencies, while others responding with legislative prohibitions or restrictions."Assessing the Differences in Bitcoin & Other Cryptocurrency Legality Across National Jurisdictions (2017)
[3] supported
The Taliban banned trading in cryptocurrencies in Afghanistan.
"In August 2022, the Taliban banned trading in cryptocurrencies."Legality of cryptocurrency by country or territory
[4] supported
Nigeria's Central Bank (CBN) sent a letter to banks and other financial institutions stating that dealing in cryptocurrencies and facilitating payments for crypto exchanges are prohibited.
"Then the wind was seemingly knocked out of the sail of the exchange of cryptocurrency when the Central Bank of Nigeria(CBN), addressed a letter recently to banks and other financial institutions, stating that dealing in cryptocurrencies and facilitating payment for exchanges are prohibited."The Prohibition of Cryptocurrency Transactions by the Central Bank of Nigeria (2022)
[5] supported
The Philippines and Denmark allow cryptocurrency to be used and/or traded, but under a restrictive and cautious approach.
"The Philippines and Denmark are relatively forward-looking in their endeavour to regulate cryptocurrency by allowing its utilization and/or trade but with a restrictive and cautious approach."Comparative Review of the Regulatory Framework of Cryptocurrency in Selected Jurisdictions (2022)
[6] supported
Kyrgyzstan treats bitcoin as a commodity, so it may be legally mined, bought, sold and traded on a local commodity exchange.
"Bitcoin is considered a commodity, [ 63 ] not a security or currency under the laws of the Kyrgyz Republic and may be legally mined, bought, sold and traded on a local commodity exchange."Legality of cryptocurrency by country or territory
[7] supported
Before the central bank's prohibition, Nigeria's securities regulator had classified cryptocurrencies as securities, which was seen as a possible step toward a regulatory system.
"A glimmer of hope came when the Securities and Exchange Commission (SEC) of Nigeria, classified cryptocurrencies as securities, hence, suggestive of the end of a somewhat long-awaited likely regulatory system."The Prohibition of Cryptocurrency Transactions by the Central Bank of Nigeria (2022)
[8] supported
Gibraltar, Malta, Switzerland, Singapore, and certain US states have enacted proactive, enabling, industry-specific cryptocurrency laws.
"Countries such as Gibraltar, Malta, Switzerland, Singapore, and certain states in the United States have enacted proactive, enabling, and industry-specific laws to regulate cryptocurrency."Comparative Review of the Regulatory Framework of Cryptocurrency in Selected Jurisdictions (2022)
[9] supported
Uzbekistan legalized crypto trading, made it tax-free, and legalized mining through a decree.
"On 2 September 2018, a decree legalizing crypto trading — also making it tax-free — and mining in the country came into force, making Uzbekistan a crypto-friendly state."Legality of cryptocurrency by country or territory
[10] supported
El Salvador made bitcoin legal tender through the Bitcoin Law.
"Bitcoin was made legal tender in the country through the Bitcoin Law"Legality of cryptocurrency by country or territory
[11] supported
El Salvador became the first country in the world to legalize Bitcoin as legal tender on September 7, 2021.
"El Salvador se convirtió en el primer país del mundo en legalizar el Bitcoin como moneda legal, desde el 7 de septiembre de 2021."Legalidad del bitcoin
[12] supported
The Salvadoran Congress approved a bill on June 8, 2021, to make Bitcoin legal tender in the country.
"El martes 8 de junio de 2021, el congreso salvadoreño aprobó el proyecto de ley para que el Bitcoin sea moneda legal en el país."Legalidad del bitcoin
[13] supported
The European Court of Justice declared in 2015 that the buying and selling of bitcoins is exempt from VAT, equating its trade to other currency markets.
"El 22 de octubre de 2015, el Tribunal de Justicia de la Unión Europea (TJUE), declaró la compraventa de bitcoins exenta del pago de IVA, equiparando así su comercio al de otros mercados de divisas."Legalidad del bitcoin
[14] supported
In the United States, a federal judge ruled in 2013 that bitcoins are a currency or form of money subject to the court's jurisdiction.
"El 6 de agosto de 2013, el juez federal Amos Mazzant, del Distrito Oriental de Texas del Quinto Circuito, dictaminó que los bitcoins eran «una moneda o una forma de dinero» y como tales estaban sujetos a la jurisdicción del juzgado."Legalidad del bitcoin