Key Takeaway
- Some countries have fully banned Bitcoin mining, citing concerns like energy consumption, financial instability, illicit finance, and threats to national currencies.
- Enforcement methods vary but often include monitoring electricity usage, restricting mining hardware imports, tracking internet activity, and encouraging public reporting.
- Despite strict laws, underground mining and informal crypto activity persist in many of these countries, driven by economic hardship, tech-savvy users, and unregulated demand.
- The global regulatory landscape remains fragmented, and while bans aim to curb crypto activity, they often shift mining operations to neighboring regions or push them further underground.
Bitcoin has become a polarizing force on the global stage. While some hail it as the ultimate tool for financial freedom and a decentralized alternative to fiat systems, others condemn it as a threat to national economic stability, or criticise its famous energy consumption.
With such contrasting opinions, the regulatory landscape is predictably fragmented. In response to these concerns, many nations have taken firm action by outlawing Bitcoin mining altogether.
In this article, we’ll explore eight countries that have directly banned Bitcoin mining, why they did it, and what the future holds.
8 Countries With Bitcoin Mining Bans
Although many countries regulate crypto, these eight have taken the further step of banning Bitcoin mining altogether.
1. China
China was once the undisputed epicenter of global Bitcoin mining, contributing more than 65% of the network’s total hash rate at its peak. The country’s dominance stemmed from a combination of three factors: cheap electricity, particularly from hydro and coal-powered plants in regions like Sichuan and Inner Mongolia, readily available mining hardware, and a robust manufacturing supply chain. For years, Chinese mining farms operated at an industrial scale, fueling the Bitcoin ecosystem and driving innovation in mining.
However, in 2021, the Chinese government imposed a sweeping ban on all crypto mining activities. Authorities cited concerns over excessive energy consumption, financial risks, and illegal fundraising linked to crypto projects.
The ban was particularly significant due to China’s heavy reliance on coal-powered energy, which contradicted the country’s long-term carbon neutrality goals. As a result, many miners fled to more crypto-friendly countries like Kazakhstan and the United States.
Despite the ban, reports suggest that underground mining operations persist in rural provinces, indicating a thriving black market. Enforcement remains a game of cat and mouse, with periodic government crackdowns.
Looking at statistics, China still has some major mining pools that hold a huge share of the global hashrate. For example, China still holds 20% of the total BTC hash rate.
2. Bangladesh
In Bangladesh, the government enforced a prohibition on all forms of cryptocurrency activity, including trading and mining. The reasoning behind this decision cites concerns over money laundering, fraud, and the destabilization of the national financial system.
Bangladesh’s central bank has issued multiple warnings about crypto’s risks and declared that anyone found engaging in such activities could face criminal prosecution under anti-money laundering laws. Due to the lack of access to affordable electricity and high surveillance levels, underground mining is minimal. Despite the official ban, citizens are still able to access crypto services through various methods. In recent years, the country has seen an increase in money laundering and Ponzi schemes.
3. Algeria
Algeria has taken one of the most uncompromising stances against cryptocurrencies on the African continent. In 2018, the Algerian government formally outlawed the possession, purchase, sale, and use of all cryptocurrencies, including Bitcoin. This blanket ban extends to mining activities, effectively cutting off any legal pathway for individuals or businesses to engage with digital assets. The prohibition was codified in the nation’s Financial Law, which explicitly prohibits the use of crypto as a means of payment or transaction.
The logic centers around protecting the Algerian dinar, maintaining state control over financial flows, and curbing illicit transactions. Algeria’s authoritarian political structure and tight control over the internet make enforcement relatively straightforward. Furthermore, mining equipment is difficult to import, and few local initiatives attempt to bypass these restrictions.
Despite these barriers, there is evidence that underground interest in crypto persists. Tech-savvy Algerians occasionally turn to VPNs and peer-to-peer platforms to bypass restrictions and acquire cryptocurrencies discreetly.
4. Nepal
Nepal has consistently maintained a strict anti-crypto policy, treating digital currencies as a threat to its financial ecosystem. In September 2021, the Nepal Rastra Bank (NRB), the country’s central bank, reinforced its position by issuing a formal notice declaring all cryptocurrency-related activities, trading, mining, and promoting crypto investments illegal under the Foreign Exchange Act. The NRB emphasized that individuals and entities involved in such activities could face legal consequences.
The government’s primary concern revolves around the unregulated nature of cryptocurrencies, particularly their potential to facilitate remittance evasion and unmonitored capital flight. Nepal’s economy is heavily dependent on remittances from citizens working abroad, which account for a significant portion of the nation’s GDP. Cryptocurrencies, being decentralized and difficult to trace, pose a challenge to the state’s control over foreign exchange flows and monetary stability. Officials fear that if left unchecked, crypto could undermine the formal financial system and reduce reliance on official banking channels.
Authorities have also conducted raids and arrested individuals for running mining operations and trading cryptocurrencies. Crypto activity continues to surface, particularly in remote regions near the Indian border, where enforcement is weaker and cross-border smuggling of mining rigs is easier.
5. Morocco
Morocco banned cryptocurrency trading and mining in 2017. The decision was based on fears surrounding terrorism financing, fraud, and monetary instability. The country’s Foreign Exchange Office and central bank warned citizens that transactions involving crypto would be penalized. Despite the ban, Morocco has consistently ranked among the top African countries in crypto adoption.
In a significant policy shift, the Moroccan government announced in November 2024 that it was drafting new legislation to regulate cryptocurrency rather than ban it outright. Bank Al-Maghrib confirmed that a comprehensive legal framework is in development, aimed at providing clarity around the use, taxation, and compliance aspects of crypto assets. The draft legislation is expected to cover exchanges, wallets, Know Your Customer (KYC) requirements, and anti-money laundering (AML) standards.
This evolving stance marks a major transformation in the country’s approach. It reflects a growing recognition that outright bans may be less effective than structured regulation in addressing risks while allowing innovation. Furthermore, the central bank has hinted at future explorations into launching a central bank digital currency (CBDC), aligning Morocco with a global trend in sovereign digital currencies.
In theory, if implemented, a Moroccan CBDC could coexist with regulated cryptocurrencies, offering citizens a government-backed alternative for digital payments and remittances. As of mid-2025, the new law is still under review, but the shift in tone from prohibition to regulation is a clear signal of Morocco’s intent to embrace fintech advancements.
6. Tunisia
Tunisia has adopted a firm anti-crypto stance, banning Bitcoin and all other cryptocurrencies, which effectively includes a prohibition on mining operations. The Central Bank of Tunisia has issued multiple statements warning citizens against the use of digital currencies, citing concerns about financial stability, monetary sovereignty, and the potential for cryptocurrencies to be used in illicit activities such as money laundering, terrorism financing, and others.
Government officials have emphasized that decentralized digital assets pose a threat to the Tunisian dinar by enabling untraceable cross-border transactions and bypassing the formal banking system.
Interestingly, Tunisia was once viewed as a potential leader in blockchain innovation within the North African region. In 2015, the country made headlines as one of the first to explore blockchain-based solutions for its national digital currency system through a pilot project with Monetas. However, that early optimism faded in the years following the Arab Spring, as political instability, economic struggles, and a rise in regulatory conservatism led the government to prioritize financial control over innovation.
Today, public awareness of crypto in Tunisia remains low, and engagement with blockchain technology is largely confined to small tech circles or academic institutions. Mining is especially rare due to high electricity costs relative to average income, a limited supply of mining hardware, and the risk of government crackdowns.
While neighboring countries like Morocco have seen a rise in underground crypto activity despite similar bans, Tunisia’s crypto scene is far less developed.
7. Iraq
Iraq has cracked down on cryptocurrencies, particularly concerning mining. The central bank issued a directive banning the use of crypto in 2017. A year later, in 2018, Iraq’s cautious approach toward digital assets was reinforced. The Kurdistan Regional Government’s Supreme Fatwa Board issued a ruling against OneCoin.
Security concerns play a significant role. The government fears that crypto could be used for funding terrorism or evading sanctions. While Iraq suffers from frequent power shortages, mining is mostly unviable in urban areas.
Although official restrictions are still in place, informal crypto trading persists due to ambiguous enforcement at the individual level. The government continues to enforce tight regulations, prohibiting financial institutions from processing any cryptocurrency-related transactions.
8. Egypt
Egypt officially banned cryptocurrencies in 2018, following a decree issued by Dar al-Ifta, the country’s highest Islamic legal authority. The religious order deemed cryptocurrency use haram (forbidden) under Islamic law, citing its speculative nature, potential for fraud, and association with money laundering. Furthermore, the Central Bank of Egypt reinforced this stance by prohibiting banks and financial institutions from engaging in crypto-related transactions. This effectively outlawed both trading and mining within the country.
Authorities have maintained that cryptocurrencies pose a direct threat to Egypt’s financial and economic stability. By circumventing the central banking system, crypto can enable unregulated capital flight, facilitate tax evasion, and undermine the Egyptian pound. These concerns are especially pressing in a country grappling with inflation, foreign debt, and a large informal economy.
Despite these restrictions, Egypt has seen a quiet but persistent interest in digital assets. High youth unemployment, rising living costs, and limited access to traditional financial services have pushed some Egyptians, particularly tech-savvy individuals, to explore cryptocurrencies as an alternative income stream.
However, the risks are considerable. The legal framework treats crypto involvement as a serious offense, with the potential for imprisonment and heavy fines. As a result, most crypto activity remains underground, and those who participate tend to do so with extreme caution.
How Can Countries Enforce Bitcoin Mining Bans?
Enforcing a Bitcoin mining ban is more complex than it may seem. While passing legislation is relatively easy, ensuring compliance requires substantial infrastructure and resources.
One of the most common methods involves tracking energy usage. Since Bitcoin mining consumes enormous amounts of electricity, authorities often monitor unusual spikes in energy consumption. In countries with state-owned utilities, identifying potential mining operations becomes easier.
Furthermore, governments may impose import restrictions on mining hardware. Customs agencies can seize rigs like ASICs (Application-Specific Integrated Circuits) or GPUs (Graphics Processing Units) at borders. In many cases, crypto miners must smuggle equipment or build rigs from parts sourced locally.
Internet surveillance is another tactic. Mining pools typically connect to the Bitcoin network online, and governments with advanced monitoring systems can track IP addresses. Blocking or throttling traffic to these addresses can reduce mining efficiency or shut operations down completely.
Some countries also encourage public reporting. By incentivizing citizens to report suspicious activity, authorities can extend their reach without relying solely on law enforcement. In tightly controlled societies like China and Algeria, these methods are particularly effective.
Despite these measures, enforcing a total ban is rarely foolproof. Many miners adapt by using VPNs, operating in remote areas, or turning to stranded energy sources. As a result, black markets for mining continue to flourish in many regions, even under strict bans.
Closing Thoughts
The question of whether crypto mining is illegal depends entirely on the location. As seen from the examples above, some countries have implemented strict policies banning the practice. The most common concerns involve environmental harm, financial instability, or political risk as justification.
However, history has shown that banning Bitcoin mining doesn’t necessarily stop it. In fact, it often pushes the activity into neighboring countries or underground networks, which are harder to monitor and regulate. This dynamic is likely to continue as governments wrestle with how to handle the growth of decentralized technologies.
