Crypto glossary
Crypto ban
A crypto ban is a government prohibition on trading, mining, paying with or offering services in cryptocurrencies, in whole or in part.
Bans vary in scope. Some prohibit banks and payment firms from serving crypto businesses, cutting off fiat access without outlawing ownership. Others ban exchanges, initial coin offerings or mining, and a few declare all crypto transactions illegal. Governments cite capital flight, financial stability, fraud, money laundering, energy use and protection of their own currency or CBDC as reasons.
China is the most significant case. It banned ICOs and domestic exchanges in 2017, cracked down on mining in 2021, which pushed a large share of global hashrate abroad, and later that year declared crypto-related transactions illegal. India's central bank barred banks from serving crypto firms in 2018, but the Supreme Court struck the measure down in 2020. Nigeria restricted bank access in 2021 and eased it in late 2023.
Bans rarely eliminate activity. Peer-to-peer markets, VPNs and offshore exchanges keep crypto accessible, often with fewer protections for users, and some countries have reversed course in favour of licensing.
Example
After China's 2021 mining crackdown, miners shipped their machines to the US and Kazakhstan, and Bitcoin's hashrate fell sharply for several weeks before recovering.