Why some countries banned cryptocurrency?

This year crypto market has fallen at the bottom due to the legality of cryptocurrency. Though there are some other reason, but it is one of the top reason of this crash. Al least 11 countries have banned bitcoin. This year when South Korean announced that they will ban cryptocurrency, bitcoin price was dropped 15%. But why some countries banned cryptocurrency. There are some reason that countries banned bitcoin.

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Security is one of the top reason of banning cryptocurrency. From a bitcoin transaction it is not possible to track it's sender or receiver. So there is a possibility of using bitcoin for illegal purpose like buying and selling drugs, weapon etc. It allow hackers to pay and stay anonymous. Also money laundering is happening due to anonymity feature of bitcoin.

In banking system all of transaction requires some fees, even for holding some money in their bank. One of the main reason people use bank is that their transaction is smooth. But after the financial crisis of 2008 customer lost their faith on bank. Using blockchain technology transaction is possible in every second 24 hours a day and all of the transaction is visible in the network. For those facilities bank can loose control of the money and government can loose taxes, for this reason some countries banned cryptocurrency.

It is important that banning cryptocurrency will not stop it's flow. Banning will create more black market. Thanks for visiting my blog.