While cryptocurrency has transformed global finance, offering decentralization and new investment opportunities, not every nation exactly lays a red carpet for crypto. As a matter of fact, some governments view crypto as a threat to financial stability, a tool for illicit activities, and a challenge to monetary control. Let’s count down the least crypto-friendly countries around the world in 2026.
What constitutes being non-crypto friendly?
When I compiled this list of least crypto-friendly countries in 2026, I looked at places that stand out for their rigid policies, those that either outright ban crypto or impose severe restrictions and taxes. In some cases, the countries are theoretically crypto-friendly, but there are no rules that protect crypto holders, who have no recourse when there is a security threat.
So let’s begin.
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China: The Pioneer of Comprehensive Crypto Bans
China consistently leads the list of restrictive regimes with the least crypto-friendly jurisdictions with sweeping prohibitions. In other words, China screams a resounding “NO” to crypto and persons holding crypto, unless, of course, you’re getting on their CBDC program.
Since 2017, authorities have progressively tightened the screws. First they put a ban on cryptocurrency exchanges, then proceeded to put a full prohibition on trading, mining, and other crypto transactions by 2021.
Violations to the rules, can lead to serious punishments Needless to say, despite the fact, underground trading persists among some determined users.
The People’s Bank regularly cites financial instability, energy consumption from mining, volatility, and links to illegal activities as their reasons for carpet banning crypto.
Funnily enough though, China promotes its own digital yuan instead, which shows that they prefer centralized control and not decentralized assets. All these rules and regulations make China one of the clearest examples of one of the least crypto-friendly environment.
Bolivia: Long-Standing NO to Digital Assets
Bolivia is another country that has had a strong anti-crypto position since 2014. The Bolivian Central Bank calls cryptocurrencies illegal, saying they cause monetary instability and potential fraud.
Similar to China, crypto trading or commercialization of crypto remained banned up until a few months ago.
However, due to sweeping inflation and a frustrating financial crisis, Bolivians have now clung to crypto for their dear life. This is despite Bolivian officials seeing crypto as a potential avenue for capital outflows rather than innovation.
Nevertheless, despite the country preparing to open its financial system to cryptocurrencies and stablecoins to modernize its economy, Bolivia still remains far behind other Latin American countries when it comes to crypto adoption.
Algeria: Strict Ban Driven by Financial Security Concerns
Algeria joined the ranks of the least crypto-friendly countries in 2018, outlawing the purchase, sale, use, and holding of cryptocurrencies. The Algerian government keeps emphasizing threats to financial security, money laundering, and economic stability as reasons for not embracing crypto.
Banks and institutions are strictly banned from doing any crypto transactions or dealings. This does not mean that informal trading does not happen; only participants face significant legal risks.
Bangladesh: Zero Tolerance for Crypto Activities
Bangladesh is another country where the central bank has enforced a blanket ban on crypto since 2017. Of course they cite financial instability, volatility, and illicit uses as original reasons for saying no.
Bangladesh has officially declared cryptocurrency trading and mining illegal, and even possessing cryptocurrency can lead to legal consequences.
Despite global trends toward regulation, Bangladesh choses not to evolve making it to our list of least crypto-friendly countries.
Egypt: Heavy Restrictions with Religious and Economic Background
Egypt’s Central Bank has imposed strict limitations on crypto since 2018, including on trading and mining.
While not always a total written ban, operations remain highly restricted, often because they clash with Islamic finance principles and sharia law. By 2026, this fatwa from Al-Azhar University reinforces the policy, with additional concerns about economic volatility in a country still recovering from past crises.
Egypt’s strict enforcement includes raids on crypto operations and warnings from the Egyptian Banking Institute.
But as you would imagine, some exchanges operate in gray areas in Egypt, and tech-savvy Egyptians use VPNs to access international platforms. However, official policy discourages engagement.
Afghanistan: Renewed Bans After Taliban Takes Over
When the Taliban took over in 2022, Afghanistan reimposed a complete cryptocurrency ban, shutting down exchanges and arresting operators. Crypto once served practical purposes like remittances, but current restrictions make it highly risky. Taliban officials cite financial instability and fraud risks in an already fragile economy, because apparently that’s the only thing draining their economy.
Nevertheless, these policies reinforce Afghanistan’s spot on lists of the least crypto-friendly countries.
Morocco: Prohibition Amid Drafts for Potential Change
Morocco banned crypto transactions in 2017 over concerns about financial crimes and stability. The central bank has since drafted legislation that could signal future regulation, but as of now, ownership and trading remain prohibited.
Like any country, unofficial activity continues, yet the official ban keeps Morocco in the least crypto-friendly category for the time being.
France: Lack of Security-Focused Regulations in a European Context
France takes a different path from outright bans.
Crypto is very much legal under the Markets in Crypto-Assets (MiCA) framework and earlier PACTE laws in France, with licensed providers required for services.
Authorities emphasize anti-money laundering, cybersecurity, and investor protection, sometimes leading to warnings about illicit uses like terrorism financing. While not banned, the heavy compliance burden and focus on security make France relatively cautious compared to more permissive European peers.
That said, the biggest threat in France is the growing crime rates, with these crimes mostly aimed at crypto holders. Crypto holders regularly come under wrench attacks and have been held for ransom and often have no legal recourse against the perpetrators.
As you can see, the global crypto landscape evolves rapidly, with some countries easing restrictions while others double down, earning them the label of least crypto-friendly.
For anyone navigating digital assets, understanding local rules is essential; policies can shift, and what seems restricted today might change tomorrow.
Concluding Thoughts
While places like El Salvador embrace Bitcoin as legal tender, these nations that we discussed above opt for prohibition to safeguard their economies. However, critics argue that such bans drive activity underground, potentially increasing the very risks governments aim to avoid.
Having said that, crypto is an ever-evolving space. Who’s to say these names will stay on the list?
