When talking about cryptocurrency prohibition, the practice of banning or heavily restricting crypto activities in a jurisdiction. Also known as crypto bans, it shows up when governments decide that digital assets pose too much risk to their financial system.
This rule set encompasses regulatory compliance, the process of meeting legal standards for crypto businesses and users. In places with strict prohibition, you’ll see a hard push for KYC, Know‑Your‑Customer checks that verify a person’s identity before they can trade. The idea is simple: if you can’t prove who you are, the authorities won’t let you touch crypto. At the same time, FBAR, the Foreign Bank Account Report requirement for U.S. taxpayers often influences prohibition policies because holding crypto on foreign exchanges can trigger hefty penalties.
First, exchange platforms get hit hard. Whether it’s a DEX like Lifinity or a regulated venue like INX, a prohibition forces them to shut down services in the targeted country or redesign their product to meet local rules. Second, token projects such as U2U Network or GameZone must rethink token distribution if a major market bans their coin. Third, everyday investors see their wallets freeze, their tax reporting get more complicated, and their ability to move assets across borders shrink. All of these ripple effects stem from the core policy that cryptocurrency prohibition requires strict compliance checks and often drives higher monitoring costs for businesses.
Understanding these dynamics helps you avoid costly mistakes. Below you’ll find a curated set of articles that break down exchange reviews, compliance guides, and real‑world case studies, giving you the tools to navigate a world where crypto rules can change overnight.
Kuwait has banned all cryptocurrency activities, including mining, trading, and payments, with strict enforcement and criminal penalties. The Central Bank of Kuwait leads a multi-agency crackdown to protect its financial system and power grid.
Egypt's Central Bank bans crypto under Law No. 194/2020, detailing enforcement, risks, and the selective use of blockchain for government projects.