Top 3 Countries with the Strictest Cryptocurrency Bans You Should Know
Today, millions worldwide love to travel, discover new, unique places, and allow themselves to use the money they earned in another country or bring new technologies from there.
However, not all countries are ready to keep up with progress in blockchain technologies. In 2025, many states remain cautious or even hostile toward the crypto industry, introducing strict bans and restrictions. In some countries, using cryptocurrencies or any Web3 technologies can cause difficulties and lead to serious legal consequences, including fines and criminal liability.
In this article, Coinmooner highlights three countries that regulate cryptocurrencies the most wholly and strictly ban their use within their territory. Despite the global spread of digital assets, these states continue to follow strict policies regarding blockchain, seeing it as a threat to economic stability or government control over finances. We will analyze the reasons for such bans, the primary debates around regulation, and possible risks for tourists and crypto enthusiasts.
If you plan a trip abroad and actively use cryptocurrencies, studying local laws in advance is essential to avoid unpleasant situations. In some countries, even storing digital assets may be considered illegal activity. That’s why we have prepared a detailed review of countries where cryptocurrencies are strictly prohibited, and breaking the rules can lead to serious consequences.
CHINA
The first country Coinmooner wants to discuss in this article is China. The Chinese authorities began imposing restrictions on cryptocurrencies in 2013, when the People's Bank of China (PBoC) banned banks from conducting Bitcoin transactions, citing money laundering risks. In 2017, the government banned initial coin offerings (ICOs) and shut down local cryptocurrency exchanges, forcing large platforms like Binance and Huobi to move abroad. However, Chinese citizens continued to trade cryptocurrencies through foreign exchanges and over-the-counter (OTC) platforms.
The main reasons for strict regulation are financial risks, economic stability threats, and capital control. The Chinese government was concerned that cryptocurrencies could be used for illegal transactions, tax evasion, and capital outflows. Additionally, cryptocurrency mining consumed vast amounts of electricity, which conflicted with China's goals to reduce carbon emissions. This led to a ban on mining in 2021, forcing major Chinese mining companies like Bitmain and Canaan to move their operations to Kazakhstan, the US, and other countries.
During the ban, Chinese authorities began actively investigating significant cryptocurrency cases. For example, in 2021, China’s largest OTC trading service, Huobi, was shut down, and the accounts of thousands of traders suspected of illegal transactions were frozen. In 2023, the police arrested dozens of individuals involved in a money-laundering scheme using cryptocurrencies worth over $5 billion. Furthermore, Chinese courts have repeatedly confirmed that cryptocurrencies do not have legal status as a means of payment.
After the complete ban on cryptocurrencies in 2021, many Chinese companies ceased operations. Binance and Huobi moved their activities to Singapore and other jurisdictions. OKX and Gate.io also moved their main offices outside of China. The largest mining equipment manufacturer, Bitmain, stopped selling in China and moved production to Malaysia. Despite strict measures, Chinese investors continue to participate in the crypto market through foreign platforms, VPNs, and offshore companies.
EGYPT
The following country Coinmooner wants to discuss is Egypt, which began limiting the use of cryptocurrencies in 2018 when the Central Bank of Egypt (CBE) officially banned all transactions with digital assets, including buying, selling, and mining. The authorities stated that cryptocurrencies threaten financial stability and could be used for illegal operations. In 2020, a new law on financial technologies was adopted, which included criminal liability for using cryptocurrencies without special permission. Despite the ban, Egypt's black market for cryptocurrencies grew, especially during economic instability.
The main reason for the ban was the Egyptian government's desire to control financial flows and prevent capital outflows. The Egyptian pound is subject to significant fluctuations, and many citizens started using Bitcoin to protect their savings. Additionally, the authorities were concerned that cryptocurrencies could be used to fund terrorism and launder money, mainly due to the activity of extremist groups in the Sinai Peninsula. The Central Bank also emphasized that tangible assets do not back cryptocurrencies and could lead to financial losses for investors.
There have been several criminal cases related to cryptocurrencies in the country. In 2021, Egyptian police arrested several people involved in illegal Bitcoin mining. In 2022, the authorities arrested the organizers of a large fraudulent scheme that raised millions of dollars from trusting investors, promising high returns from cryptocurrency investments. There were also cases where cryptocurrencies were used for illegal cross-border transfers, which drew additional attention from regulators.
After introducing the ban, many Egyptian cryptocurrency platforms and startups ceased operations or moved their activities abroad. Among them was Bitcoin Egypt, the first cryptocurrency exchange in the country, which planned to enter the market but was forced to close. Many Egyptian traders and miners moved to the UAE and other countries with lenient regulations. However, despite the strict measures, the demand for cryptocurrencies in Egypt remains high, and citizens continue to use P2P platforms and unofficial exchanges to work with digital assets.
The last country Coinmooner wants to talk about in today’s article is Pakistan, which started imposing restrictions on the use of cryptocurrencies in 2018 when the State Bank of Pakistan (SBP) officially banned banks and financial institutions from dealing with digital assets. This meant citizens could not legally buy or sell cryptocurrencies through bank accounts. However, the ban was not strictly enforced, and cryptocurrency trading continued through P2P platforms such as Binance and LocalBitcoins. In 2023, the Pakistani government took stronger measures, stating that cryptocurrencies would never be legalized in the country, citing financial risks and recommendations from the International Monetary Fund (IMF).
The main reasons for the ban were concerns about money laundering, terrorism financing, and the instability of the national currency. Pakistan faced a severe economic crisis, and the authorities feared that cryptocurrencies could be used for illegal capital outflows, further weakening the Pakistani rupee. The State Bank of Pakistan followed a strict currency control policy, and cryptocurrencies' decentralized nature threatened this control. In 2023, the government intensified its fight against illegal cryptocurrency operations by closing several exchange platforms.
In recent years, Pakistan has witnessed several high-profile cryptocurrency scandals. In 2021, the Federal Investigation Agency (FIA) of Pakistan froze the accounts of over 1,000 traders suspected of using cryptocurrencies for illegal financial activities. That same year, the country’s largest cryptocurrency scam was uncovered, involving an investment scheme where fraudsters stole over $100 million from investors through fake platforms posing as trusted crypto exchanges. The authorities also cooperated with Interpol to arrest suspects hiding abroad.
After tightening the bans, many cryptocurrency companies, such as Urdubit, Pakistan’s first cryptocurrency exchange, ceased their operations. Binance and other international platforms faced strict restrictions, leading to decreased trading volumes among Pakistani users. However, despite the official ban, many citizens continue to use cryptocurrency through unofficial channels, including P2P exchanges and crypto wallets, making the cryptocurrency market in Pakistan illegal but still active.
Coinmooner is confident that in the era of globalization and digital technologies, awareness of the legal aspects of cryptocurrencies can play a key role in preventing unpleasant situations. Ignorance of local laws does not free you from responsibility, and in some countries, breaking cryptocurrency-related bans can lead to fines and severe legal consequences, including criminal liability. Understanding the risks and rules set in different jurisdictions will help you travel freely without fear of finding yourself in a difficult situation.
Additionally, we want to remind you that security in the Web3 world is not just a recommendation but a necessity. The most advanced protection methods, such as multi-factor authentication, hardware wallets, and trusted decentralized platforms, will help secure your assets from fraudsters and hacker attacks. Despite its transparency and decentralization, the crypto industry remains an attractive target for criminals, and only awareness, attention, and adherence to the best security practices will help protect your finances.
Be cautious when working with digital assets, carefully check sources of information, don’t trust suspicious projects, and always remember that your security is in your hands. The cryptocurrency world is a whole of opportunities, but the risks are also significant, so an innovative approach and vigilance will be your best allies on the path to financial freedom and independence.
