State regulation of digital assets remains one of the main problems in the process of scaling cryptocurrency. Governments of many countries are “afraid” of digital currencies because the decentralised system makes it impossible to control them.
For example, last summer, Chinese authorities introduced stricter measures against cryptocurrency. In particular, they demanded an end to cryptocurrency mining in all regions of the country and discussed the possibility of banning the storage of bitcoins.
Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, and Bangladesh are among other countries that have completely banned digital currency.
“Forty-two other countries, including Algeria, Bahrain, Bangladesh, and Bolivia, have partially banned the use of digital currencies by restricting banks’ ability to process cryptocurrency-related transactions or banning cryptocurrency exchanges,” Fortune wrote.
At the same time, many countries are trying to launch digital analogs of national currencies (CBDC) and come up with a system to control cryptocurrency transactions.