So, why do some countries restrict their currencies? How do cryptocurrencies fit into the restricted currencies landscape, and what’s the latest list of restricted currencies? Let’s dive in. 

 

Updated List of Restricted Currencies (2025)

 

Currency restrictions change over time, so this list reflects the latest data on restricted and non-convertible currencies.

 

Country	Currency	Code	Restriction Type
Afghanistan	Afghan afghani	AFN	Sanctions and economic instability limit convertibility
Argentina	Argentine peso	ARS	Strict forex controls to prevent devaluation
Belarus	Belarussian ruble	BYN	Sanctions and political instability
China	Chinese yuan (Renminbi)	CNY	Partially convertible, government controls the exchange
Cuba	Cuban peso	CUP	Non-convertible, only exchanged through state banks
Egypt	Egyptian pound	EGP	Government-monitored forex system
Ethiopia	Ethiopian birr	ETB	Restricted foreign exchange access
India	Indian rupee	INR	Partially convertible, export limited to ₹25,000 per traveler
Iran	Iranian rial	IRR	Highly restricted forex market
Kazakhstan	Kazakhstani tenge	KZT	Currency controls in place
Kyrgyzstan	Kyrgyzstani som	KGS	Some limitations on currency convertibility
Libya	Libyan dinar	LYD	Strict forex controls, limited international convertibility
Moldova	Moldovan leu	MDL	Limited convertibility and potential restrictions
Morocco	Moroccan dirham	MAD	Partially convertible, forex limits on residents
Myanmar	Burmese kyat	MMK	Government controls exchange rates
Nigeria	Nigerian naira	NGN	Forex restrictions due to economic instability
North Korea	North Korean won	KPW	Non-convertible, government bans foreign currency use
Pakistan	Pakistani rupee	PKR	Government-imposed forex controls
Russia	Russian ruble	RUB	International sanctions limit rub transactions
South Sudan	South Sudanese pound	SSP	Forex transactions restricted
Sri Lanka	Sri Lankan rupee	LKR	Government monitors forex reserves tightly
Tajikistan	Tajikistani somoni	TJS	Limited trading and restrictions
Tunisia	Tunisian dinar	TND	Non-convertible outside Tunisia
Turkmenistan	Turkmenistani manat	TMT	One of the most heavily controlled currencies in the world
Ukraine	Ukrainian hryvnia	UAH	Forex controls due to war-related economic instability
Uzbekistan	Uzbekistani som	UZS	Government controls forex transactions
Venezuela	Venezuelan bolívar	VES	Government sets artificial exchange rates
Vietnam	Vietnamese dong	VND	Difficult to exchange outside of Vietnam

Notes:

• Some currencies, like the Hungarian forint (HUF), Swedish krona (SEK), Danish krone (DKK), and Singapore dollar (SGD), are fully convertible and not subject to restrictions.
• Brazilian real (BRL), South African rand (ZAR), and Hong Kong dollar (HKD) are also freely traded in 2025, despite past misconceptions.

 

Restricted currencies can be classified into three categories:

 

• Non-convertible currencies – Cannot be freely exchanged outside the country (e.g., North Korean won, Cuban peso).
• Partially convertible currencies – Exchange is allowed, but with limitations (e.g., Indian rupee, Chinese yuan).
• Government-controlled forex markets – Only state-approved institutions can trade the currency (e.g., Egypt, Tunisia).

 

For example, the United Arab Emirates dirham (AED) is one of the fully convertible currencies, but rub transactions (Russian ruble, RUB) face international restrictions due to geopolitical sanctions.

 

Why Are Some Currencies Restricted?

 

Most freely traded currencies, like the Hungarian forint (HUF), Ugandan shilling (UGX), and Australian dollar (AUD), operate with minimal government interference. Their exchange rates fluctuate based on supply and demand in the international market.

In contrast, restricted currencies operate under moderate to heavy government controls for the following reasons:

 

1. Economic Stability & Inflation Control

If an economy is struggling, investors and citizens may rush to sell local currency in exchange for stronger alternatives (e.g., USD or Swiss franc). This can weaken the currency’s value and accelerate inflation.

 

Examples:

• The Turkish lira (TRY) has faced significant devaluation due to economic instability, prompting the government to intervene in forex markets to stabilize the exchange rate.
• Venezuela tightly controls forex transactions to stabilize the bolívar.
• Nigeria limits foreign exchange access to avoid sharp naira depreciation

 

2. Preventing Capital Flight

When businesses and wealthy individuals transfer large sums abroad, it drains foreign reserves and weakens the local economy. Many countries restrict foreign currency exchanges to prevent this.

 

Example: China (CNY) limits citizens to $50,000 in annual foreign exchange transactions.

 

3. Political & Sanctions-Related Restrictions

Some governments impose currency controls for political reasons, such as restricting foreign influence or controlling business activity.

 

Examples: 

• Russia (RUB) faces international trade restrictions, making rub transactions difficult in many countries.
• North Korea (KPW) completely bans foreign currency usage inside the country.

 

List of Countries and the History Behind their Currency Controls

Here are some countries with minor and moderate to heavy restrictions and a little historical background behind their currency controls.

 

Country	Reason for Restriction	History
Afghanistan	The Taliban has banned the use of foreign currency to stabilize the economy.	Since the Taliban's takeover in 2021, the Afghani has depreciated significantly due to the withdrawal of international aid, leading to a ban on foreign currencies to promote national interests.
Angola	Currency restrictions are in place to stabilize the economy and manage inflation.	Angola's economy has struggled with oil dependency and civil conflict, leading to government interventions including currency controls.
Armenia	Restrictions are aimed at stabilizing the economy and controlling inflation.	The Armenian dram was introduced after independence from the Soviet Union in 1991, with currency controls implemented due to economic instability.
Bahamas	Currency management is aimed at protecting against external economic shocks.	The Bahamas transitioned from a currency board to a central bank system in 1972, linking its currency closely with the U.S. dollar for stability.
Barbados	Currency restrictions are used to manage foreign exchange reserves effectively.	The Barbadian dollar was established in 1973, pegged to the U.S. dollar, with historical ties to British currency systems impacting its management.
Belarus	Restrictions are implemented to control inflation and maintain economic stability.	The Belarusian ruble was introduced post-Soviet Union in 1992, with ongoing government controls reflecting economic challenges and international sanctions.
Belize	Currency controls are used to stabilize the economy and manage foreign reserves.	Belize has faced economic challenges due to external debt and has implemented measures to control currency exchange since the early 2000s.
Brazil	To control inflation and protect the domestic market from external shocks.	Brazil has a history of hyperinflation, leading to various currency controls over decades, particularly during the 1980s and 1990s.
Cameroon	To manage foreign exchange reserves and control inflation effectively.	Economic challenges have led Cameroon to implement restrictions on currency trading to maintain stability since the 1990s.
Chile	To manage capital flows and protect the economy from external shocks.	Post-dictatorship economic reforms included measures to control capital outflows and stabilize the currency since the 1990s.
China	To maintain control over its monetary policy and manage foreign reserves effectively.	China's strict currency controls have been in place since its economic reforms began in the late 1970s, aimed at stabilizing its rapid growth.
Cuba	To protect the economy from external influences and manage scarcity of resources.	U.S. sanctions have led Cuba to implement strict currency controls as part of its socialist economic framework since the 1960s.
Egypt	To stabilize the economy amid inflationary pressures and external debt issues.	Egypt has faced economic challenges leading to restrictions on currency exchange as part of broader economic reforms since 2016.
Ethiopia	To control inflation and stabilize the local currency amid economic challenges.	Ethiopia's rapid growth has been accompanied by inflation, prompting government intervention in currency markets since 2018.
Fiji	To protect against external shocks and manage foreign reserves effectively.	Fiji's reliance on tourism has led to measures aimed at stabilizing its currency against global fluctuations since the early 2000s.
Georgia	To stabilize the economy post-conflict and manage inflation rates effectively.	Following independence from the Soviet Union, Georgia implemented controls to stabilize its emerging market economy since the early 2000s.
Ghana	To manage foreign exchange reserves amid economic instability effectively.	Ghana's historical reliance on cocoa exports has led to periodic restrictions on currency trading for stability since 2014.
India	To control capital outflows and manage foreign exchange reserves effectively.	India's liberalization in the 1990s was accompanied by ongoing restrictions aimed at stabilizing its economy amid global fluctuations.
Indonesia	To stabilize the economy against external shocks and inflationary pressures.	Indonesia's financial crisis in 1998 led to significant reforms including currency controls aimed at stabilization.
Iran	To counteract international sanctions and manage foreign exchange rates effectively.	Iran's economy has been heavily impacted by sanctions since 2006, leading to stringent currency controls as part of its strategy.
Iraq	To stabilize the economy post-conflict and manage inflation rates effectively.	Following years of conflict, Iraq implemented strict controls on its currency as part of broader economic recovery efforts since 2003.
Lebanon	To mitigate economic instability amid political turmoil and financial crises.	Lebanon's ongoing financial crisis since 2019 has resulted in severe restrictions on foreign exchange transactions.
Libya	To stabilize the economy amid political instability following civil unrest.	Post-revolution Libya has struggled with economic management, implementing restrictions on currencies for stability since 2011.
Malaysia	To manage capital flows and protect against external shocks effectively.	Malaysia implemented capital controls during the Asian financial crisis in 1997-98 to stabilize its economy effectively.
Mauritius	To protect against external shocks while promoting economic growth through tourism.	Mauritius has historically managed its currency carefully for stability amidst global fluctuations since independence in 1968.
Morocco	To maintain monetary stability amidst regional economic fluctuations.	Morocco's Dirham is managed closely by authorities to ensure stability against external pressures since its introduction in 1960.
Myanmar	To control inflation rates amid ongoing political changes and economic reforms.	Myanmar's transition towards a market economy has led to restrictions aimed at stabilizing its nascent financial system since 2011.
Namibia	To protect against external shocks while managing a developing economy effectively.	Namibia's reliance on mining exports necessitates careful management of its currency for stability amid global fluctuations since independence in 1990.
Nepal	To manage foreign exchange reserves amidst trade imbalances effectively.	Nepal's limited resources have prompted government measures aimed at controlling foreign exchange transactions for stability since early 2000s.
Nigeria	To protect against volatility in oil prices which significantly impacts its economy.	Nigeria's heavy reliance on oil exports has led to various restrictions aimed at stabilizing its national currency since early 2015.
North Korea	Strict government control over all aspects of the economy including currency trading.	North Korea’s isolationist policies lead to extreme restrictions on any form of foreign exchange or trade activity since mid-20th century.
Pakistan	Economic instability necessitating strict management of foreign reserves.	Pakistan faces ongoing challenges with inflation which have prompted government intervention in managing its currency supply since the 1990s.
Papua New Guinea	Economic fluctuations necessitating careful management of foreign reserves.	PNG’s reliance on natural resources leads to measures aimed at stabilizing its national currency amidst global price changes since early 2000s.
Philippines	To mitigate risks associated with capital flight during economic downturns.	The Philippines has implemented various measures over time aimed at controlling capital flows for better economic stability since late-1990s.
Russia	Sanctions have led to significant restrictions on foreign exchange transactions.	Russia’s geopolitical situation necessitates strict controls over currencies as part of broader economic strategies post-sanctions starting from 2014.
Samoa	Economic vulnerabilities necessitating careful management of foreign reserves.	Samoa’s small size makes it sensitive to external shocks, leading to measures aimed at stabilizing its national currency since early 2000s.
South Africa	Currency volatility necessitating government intervention for stabilization.	South Africa’s complex economic landscape requires ongoing management of its currency amidst global market fluctuations since late-20th century.
Sri Lanka	Economic crises leading to strict management of foreign exchange resources.	Sri Lanka’s recent financial difficulties have resulted in significant restrictions on currencies as part of recovery efforts starting from mid-2021.
Sudan	Political instability necessitating strict management of foreign reserves.	Sudan’s ongoing conflicts have led authorities to impose severe restrictions on all forms of currency trading for stability for years.
Tunisia	Economic challenges prompting government measures for stabilization.	Tunisia’s transition post-Arab Spring required ongoing management of currencies amidst significant political upheaval starting from early-2011.
Ukraine	Ongoing conflict necessitating strict management of foreign exchange resources.	Ukraine's geopolitical situation post-2014 has resulted in significant restrictions aimed at stabilizing its national finances amid war conditions starting from February 2022.
Uzbekistan	Government policies aimed at managing a transition towards a market-oriented economy.	Uzbekistan gradually relaxed some restrictions but continues managing currencies tightly due to historical context starting from mid-2017.

 

List of Currencies and Reasons Behind their Restrictions

Here are some notes on currencies with moderate to heavy restrictions in case you travel to or transact in these countries.

 

Currency Name	Restriction Reason	Implementing Country (Example)	Effective Date (Example)	Notes
Angolan kwanza (AOA)	Limited Convertibility, Economic Instability	Angola	Ongoing	Often difficult to exchange outside Angola
Armenian dram (AMD)	Moderate restrictions	Armenia	Ongoing	Can fluctuate, check current regulations
Afghan afghani (AFN)	Sanctions, Economic Instability	USA, UN	Ongoing	Heavily restricted due to the situation in Afghanistan
Argentine peso (ARS)	Currency Controls, Inflation	Argentina	Ongoing, varies	Restrictions change frequently
Bahamian dollar (BSD)	Pegged to USD, some controls	Bahamas	Ongoing	Generally stable, but may have limits on large transfers
Barbadian dollar (BBD)	Pegged to USD, some controls	Barbados	Ongoing	Similar to BSD
Belarussian ruble (BYN)	Sanctions, Limited Convertibility	EU, USA	2022 (sanctions ongoing)	Restrictions vary depending on the country
Belize dollar (BZD)	Pegged to USD, some controls	Belize	Ongoing	Generally stable, but may have limits on large transfers
Brazilian real (BRL)	Some capital controls	Brazil	Ongoing	Restrictions may apply to large investments
Burmese kyat (MMK)	Limited convertibility, political situation	Myanmar	Ongoing	Difficult to exchange, especially due to sanctions
Central African franc (XAF)	Pegged to EUR, limited convertibility	CEMAC countries	Ongoing	Can be difficult to exchange outside the region
Chilean Peso (CLP)	Generally freely convertible	Chile	N/A	Usually no major restrictions
Chinese yuan (CNY)	Capital Controls	China	Ongoing	Limits on taking CNY out of China
Cuban peso (CUP)	Limited Convertibility, Dual Currency System	Cuba	Ongoing	Separate currencies for locals and tourists
Egyptian pound (EGP)	Some restrictions, fluctuations	Egypt	Ongoing	Check current regulations before travel
Ethiopian birr (ETB)	Limited Convertibility	Ethiopia	Ongoing	Difficult to exchange outside Ethiopia
Fijian dollar (FJD)	Some controls	Fiji	Ongoing	May have limits on large transfers
Georgian lari (GEL)	Moderate restrictions	Georgia	Ongoing	Can fluctuate, check current regulations
Ghanaian cedi (GHS)	Some controls, fluctuations	Ghana	Ongoing	Check current regulations before travel
Indian rupee (INR)	Some restrictions on capital flows	India	Ongoing	Limits on carrying INR in and out of India
Indonesian rupiah (IDR)	Some controls	Indonesia	Ongoing	Limits on taking IDR out of Indonesia
Iranian rial (IRR)	Sanctions, Limited Convertibility	USA, UN	Ongoing	Heavily restricted due to sanctions
Kazakhstani tenge (KZT)	Doesn’t have major restrictions	Kazakhstan	Ongoing	May have some forex limitations. Check current regulations before travel
Kyrgyzstani som (KGS)	Doesn’t have major restrictions	Kyrgyzstan	Ongoing	May have some forex limitations.
Libyan dinar (LYD)	Conflict, limited convertibility	Libya	Ongoing	Very difficult to exchange
Malaysian ringgit (MYR)	Some controls	Malaysia	Ongoing	Limits on taking MYR out of Malaysia
Mauritian rupee (MUR)	Generally freely convertible	Mauritius	N/A	Some restrictions on large transfers
Moldovan leu (MDL)	Limited convertibility	Moldova	Ongoing	Can be difficult to exchange outside Moldova
Moroccan dirham (MAD)	Restricted convertibility	Morocco	Ongoing	Difficult to exchange outside Morocco
Namibian dollar (NAD)	Pegged to ZAR, some controls	Namibia	Ongoing	Usually stable, but may have limits on large transfers
Nepalese Rupee (NPR)	Some restrictions	Nepal	Ongoing	Limits on carrying NPR in and out of Nepal
Nigerian naira (NGN)	Multiple exchange rates, restrictions	Nigeria	Ongoing	Complex system, check current regulations
North Korean won (KPW)	Sanctions, Isolation	USA, UN, many others	Ongoing	Almost impossible to exchange outside North Korea
Pakistani rupee (PKR)	Some restrictions, fluctuations	Pakistan	Ongoing	Check current regulations before travel
Papua New Guinean kina (PGK)	Limited convertibility	Papua New Guinea	Ongoing	Can be difficult to exchange outside the country
Philippine peso (PHP)	Generally freely convertible	Philippines	N/A	Some restrictions on large transfers
Russian ruble (RUB)	Sanctions, volatility	USA, EU, others	2022 (ongoing)	Significant restrictions due to sanctions
Samoan tala (WST)	Some controls	Samoa	Ongoing	May have limits on large transfers
South African rand (ZAR)	Some controls	South Africa	Ongoing	Limits on taking ZAR out of South Africa
Sri Lankan rupee (LKR)	Restrictions due to economic crisis in 2022 have eased	Sri Lanka	2022	Restrictions have eased somewhat since late 2023
Sudanese pound (SDG)	Conflict, economic instability	Sudan	Ongoing	Very difficult to exchange
Tajikistani somoni (TJS)	Limited convertibility	Tajikistan	Ongoing	Can be difficult to exchange outside Tajikistan
Tunisian dinar (TND)	Restricted convertibility	Tunisia	Ongoing	Difficult to exchange outside Tunisia
Turkmenistani manat (TMT)	Heavy controls	Turkmenistan	Ongoing	One of the most difficult currencies to exchange
Ukrainian hryvnia (UAH)	Wartime restrictions, fluctuations	Ukraine	2022 (ongoing)	Significant restrictions due to the war
Uzbekistani som (UZS)	Some restrictions	Uzbekistan	Ongoing	Can be difficult to exchange outside the region
Venezuelan bolivar (VEF)	Hyperinflation, economic crisis	Venezuela	Ongoing	Extremely difficult to exchange due to economic collapse
Vietnamese dong (VND)	Some controls	Vietnam	Ongoing	Limits on taking VND out of Vietnam

 

Cryptocurrencies and Restricted Currencies

 

With the rise of cryptocurrencies, our discussion about restricted currencies is incomplete without addressing how these digital assets challenge traditional currency controls. Governments worldwide have attempted to regulate or ban crypto to maintain control over their financial systems. China, for instance, has gone through multiple phases of restricting and eventually banning cryptocurrency transactions, yet underground trading persists.

 

Many governments impose restrictions on cryptocurrencies to prevent capital flight, tax evasion, and financial instability. Countries like China, India, and Nigeria have taken steps to limit crypto usage, fearing that unregulated digital assets could undermine national currencies. However, banning crypto entirely has proven difficult, as decentralized networks like Bitcoin operate outside government control.

 

While Bitcoin is a globally recognized digital asset, it is unlikely to become a universal currency due to regulatory opposition, volatility, and scalability challenges. Governments with strong financial systems continue to dominate global markets, and most central banks are actively developing their own digital currencies (CBDCs) rather than adopting Bitcoin.

 

Some policymakers and politicians have personally invested in Bitcoin or supported its adoption. For example, U.S. Senators Cynthia Lummis and Ted Cruz have disclosed Bitcoin holdings, while countries like El Salvador have adopted Bitcoin as legal tender. However, Bitcoin remains an alternative asset rather than a widely accepted global currency.

 

Countries Prohibiting Cryptocurrency in 2025

 

 

As of January 2025, multiple countries have either fully banned or imposed severe restrictions on cryptocurrency activities due to concerns over economic stability, illicit financial activities, and regulatory challenges. These prohibitions vary, with some nations outright criminalizing crypto, while others restrict financial institutions from engaging in crypto-related transactions. Additionally, a few countries remain neutral, with no clear regulations in place.

Cryptocurrency Legal Status Around the World (2025 Update)

 

Below is an updated list categorizing countries based on their stance on cryptocurrency as of January 2025:

 

ILLEGAL OR BANNED

(Crypto is completely banned or heavily restricted by law.)

Country	Notes
Afghanistan	Crypto banned under Taliban rule
Algeria	Full ban on crypto transactions
Bangladesh	Crypto trading illegal due to AML concerns
Bolivia	Crypto banned to protect financial stability
Burundi	Crypto illegal, concerns over financial fraud
Cameroon	Government opposes crypto, but no formal ban
Chad	Crypto banned by financial authorities
China	Fully banned since 2021, crackdown on mining
Egypt	Crypto transactions outlawed under Islamic finance laws
Ethiopia	Crypto trading banned
Gabon	Crypto banned due to economic concerns
Iraq	Crypto trading and mining banned
Lesotho	Crypto illegal, financial instability concerns
Libya	Crypto transactions banned
North Macedonia	Crypto banned by financial regulators
Morocco	Crypto trading illegal, but regulation discussions ongoing
Myanmar	Government declared crypto illegal
Nepal	Crypto trading and mining banned
Qatar	Banks prohibited from handling crypto transactions
Republic of Congo	Crypto banned
Sierra Leone	Crypto banned
Tunisia	Crypto illegal under national financial laws

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NEUTRAL OR UNREGULATED

(Crypto is not banned, but there are no clear regulations or policies.)

Country	Notes
Côte d'Ivoire	No official stance on crypto
Democratic Republic of the Congo	No formal regulation
Equatorial Guinea	No official policy on crypto
Eritrea	No crypto laws, government silent on regulation
Eswatini (Swaziland)	No official crypto stance
Guatemala	No specific crypto laws
Guinea	No regulations exist
Guinea-Bissau	Crypto status unclear
Guyana	No official position on crypto
Haiti	No government regulations exist
Liberia	No specific crypto laws
Malawi	Crypto unregulated
Mali	No formal laws regarding crypto
Moldova	Crypto unregulated, discussions ongoing
Nicaragua	No official position on crypto
Niger	No crypto regulations
Paraguay	No government-backed regulation, but crypto is not banned
South Sudan	No official stance on crypto
Sri Lanka	No clear crypto regulations, government undecided
Tajikistan	Government does not regulate crypto
Togo	No clear regulations on crypto
Turkmenistan	Crypto unregulated, unclear policies
Uruguay	No clear crypto regulation
Yemen	Crypto usage unregulated
Zambia	No formal crypto regulation
Zimbabwe	Government undecided on crypto policy

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FULLY LEGAL & REGULATED

(Crypto trading and transactions are allowed and regulated under financial laws.)

Country	Notes
Albania	Legal and regulated
Andorra	Legal, follows EU guidelines
Argentina	Crypto legal, but restrictions on banking access
Austria	Fully legal, taxed under financial laws
Bahamas	Crypto legal, financial oversight applies
Bahrain	Crypto legal, regulated by central bank
Belarus	Legal but lightly regulated
Belgium	Legal under EU regulations
Botswana	Crypto legal, not widely regulated
Brazil	Fully legal, strong government oversight
British Virgin Islands	Crypto-friendly jurisdiction
Bulgaria	Crypto taxed, follows EU regulations
Canada	Fully legal, securities laws apply
Croatia	Legal, taxation applies
Cyprus	Fully legal, follows EU crypto laws
Czech Republic	Crypto legal, taxed as property
Denmark	Fully legal, taxation applies
Estonia	Strict licensing rules but fully legal
Finland	Legal, EU financial laws apply
France	Crypto taxed, exchanges regulated
Georgia	Fully legal, crypto mining-friendly
Germany	Crypto legal, classified as financial instruments
Gibraltar	Fully legal, strong financial laws
Hong Kong	Legal, strict licensing laws
Iceland	Fully legal, subject to financial regulations
India	Crypto taxed at 30%, RBI opposes but no ban
Ireland	Legal, subject to EU financial laws
Israel	Crypto taxed under financial laws
Italy	Legal, taxed under capital gains laws
Japan	Fully legal, regulated by FSA
Kazakhstan	Allows crypto mining, trading heavily regulated
Liechtenstein	Fully legal, strong financial oversight
Lithuania	Legal, pro-crypto environment
Luxembourg	Fully legal, regulated under financial laws
Malaysia	Fully legal, subject to regulations
Malta	Pro-crypto, strong financial oversight
Mauritius	Crypto-friendly regulations
Mexico	Legal, but banks cannot offer crypto services
Netherlands	Fully legal, EU regulations apply
Norway	Crypto legal, taxed as an asset
Philippines	Fully legal, regulated by SEC
Poland	Crypto taxed, EU financial laws apply
Portugal	Legal, tax benefits for crypto traders
Russia	Trading legal, but payments banned
Serbia	Legal, but with restrictions
Singapore	Pro-crypto, strong financial regulations
Slovakia	Recognized under EU laws, taxed
Slovenia	Crypto-friendly, taxed on realized gains
South Africa	Trading allowed, classified as a financial product
South Korea	Fully legal, strict licensing for exchanges
Spain	Fully legal, tax reporting required
Sweden	Crypto trading legal, subject to taxation
Switzerland	Crypto-friendly, strong financial regulations
Taiwan	Fully legal, evolving regulations
Thailand	Fully legal, regulated by financial laws
Ukraine	Legal, regulated under new laws
United Arab Emirates	Legal in crypto-friendly free zones
United Kingdom	Regulated by FCA
United States of America	Regulated by SEC & CFTC, taxed
Venezuela	Crypto legal, government launched Petro digital currency

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USED AS LEGAL TENDER

(Crypto is officially recognized as an official currency.)

Country	Notes
El Salvador	Bitcoin recognized as legal tender since 2021

 

Emerging Trends on Cryptocurrencies

While many countries are taking a hard stance against cryptocurrencies, some are exploring regulatory frameworks that allow for controlled use. This includes potential legislation to regulate rather than prohibit crypto activities. As global interest in digital currencies continues to grow, the landscape may evolve further, leading to new regulations or shifts in existing bans.

 

In summary, as of early 2025, the global approach to cryptocurrency remains highly varied. While some nations embrace digital currencies and blockchain technology, others continue to impose strict prohibitions based on their unique economic and regulatory environments.

 

How Do Restricted Currencies Compare to Free-Market Currencies?

 

Freely convertible currencies can be traded without restrictions. Examples include:

 

✅ US Dollar (USD)  – The world's primary reserve currency.

✅ Euro (EUR)  – Widely used in global trade and banking.

✅ British Pound (GBP)  – One of the strongest and most stable currencies.

✅ Japanese Yen (JPY)  – Used in global investments and trade.

✅ Australian Dollar (AUD) – Common in commodity and financial markets.

✅ Swiss Franc (CHF) – Known as a "safe haven" currency.

✅ Singapore Dollar (SGD) – Strong financial sector and investment currency.

 

In contrast, non-convertible or partially convertible currencies face government-imposed limits, affecting international trade and cross-border payments.

 

Trading Without Restrictions vs. Trading With Restrictions

The ability to trade a currency freely or with restrictions has a significant impact on economic stability, foreign investment, and international trade.

 

Trading Without Restrictions (Freely Convertible Currencies)

Currencies that can be bought, sold, or exchanged without government intervention are known as freely convertible or free-floating currencies.

 

Impact of Free-Market Currencies:

• Stronger Global Trade – Businesses and investors can easily exchange currencies for imports, exports, and institutional asset management.
• High Foreign Investment – Countries with free-market currencies attract more Foreign Direct Investment (FDI) and international capital.
• Stable Exchange Rates – While subject to market fluctuations, freely traded currencies tend to have more predictable exchange rates.
• Lower Transaction Costs – No government-imposed fees or restrictions when converting money.
• Stronger Reserve Status – Some freely traded currencies (e.g., USD, EUR) are held as global reserves by central banks.

 

Trading With Restrictions (Non-Convertible or Partially Convertible Currencies)

Some governments restrict how their currency can be traded internationally, either to protect their economy, control inflation, or prevent capital flight.

 

Impact of Restricted Currencies:

• Difficulties in International Trade – Businesses struggle to convert local currency for imports/exports.
• Limited Foreign Investment – Investors hesitate due to currency controls and risk of devaluation.
• Exchange Rate Manipulation – Governments may artificially set exchange rates, making trade inefficient.
• High Black Market Activity – When official rates are controlled, people often turn to unofficial (black market) exchange rates.
• Inflation & Economic Instability – Restrictions can create supply-demand imbalances, increasing inflation risks.

 

Restricted Currencies Versus Free-Market Currencies

 

Feature	Freely Convertible Currencies	Restricted Currencies
Exchange Flexibility	Can be traded anywhere without restrictions	Government controls limit trading
Foreign Investment	High investor confidence	Investors may avoid due to restrictions
Inflation Risk	Moderate; market-driven rates balance demand	High; artificial rates can trigger inflation
Use in International Trade	Common in global transactions (USD, EUR, JPY)	Limited; businesses face conversion challenges
Stability	More stable, freely floating	Often volatile due to artificial exchange rates
Black Market	Minimal unofficial trading	High black-market activity in restricted currency countries
Tourist & Travel Impact	Easy to exchange and use abroad	Must be exchanged inside the country; limited ATMs & banking options

 

Will a Closed Currency Affect Your Travel Plans?

 

Yes! If you're traveling to a country with a closed currency, you may face difficulties exchanging money, using international credit cards, or withdrawing cash from ATMs.

 

Key Challenges Include:

 

• Limited Exchange Options – You may have to exchange currency only at official exchange bureaus or banks.
• Strict Limits on Bringing Money In or Out – Some countries cap how much foreign currency you can bring in.
• Black Market Rates – In some cases, unofficial exchange rates differ significantly from bank rates.
• Credit Card Limitations – Not all international cards work in closed currency countries.

 

The Impact of Closed Currencies on Your Travel Plans

1- You Need to Plan Ahead!

If you’re traveling to a country with a closed currency, you must plan how you will access money before you arrive.

 

• Check exchange restrictions – Find out if you can exchange money before arrival.
• Know the official vs. black market rate – Some countries have multiple exchange rates.
• Find out if your credit/debit cards work – Some banks block international transactions in high-risk countries.

2- Budgeting Is Crucial

Because closed currency countries have strict financial rules, budgeting before your trip is important.

 

• Estimate your daily spending (accommodation, food, transport).
• Check how much cash you can legally bring in.
• Consider prepaid travel cards if your bank does not support transactions there.

 

How Can You Pay?

➡️ Cash (Best Option) – Withdraw local currency at authorized banks or ATMs.

➡️ Prepaid Travel Cards – Some allow you to load foreign currency and spend in local currency.

➡️ Mobile Payments – China (WeChat Pay, Alipay), India (UPI), and Nigeria have local payment apps that may require a local account.

➡️ Crypto Payments – Some countries (e.g., El Salvador and parts of Argentina) allow payments in Bitcoin.

 

Credit Cards & Digital Payments

Many countries with closed currencies restrict or do not widely accept international credit cards. They impose restrictions on virtual credit cards, as well, but some still allow limited usage.

 

Country Type	Virtual Credit Card (VCC) Acceptance	Key Reasons
Freely Convertible Currency Countries	Widely accepted	No restrictions on international transactions
Partially Convertible Currency Countries	Limited acceptance	Banks may block foreign transactions
Closed Currency Countries	Highly restricted	Capital controls prevent unrestricted use

 

Countries That Restrict Virtual Credit Cards

These countries either block VCC usage entirely or limit foreign transactions:

 

• China (CNY) – Strict capital controls; most international VCCs are blocked.
• India (INR) – Some VCCs work domestically but may be restricted for cross-border transactions.
• Argentina (ARS) – Foreign currency purchases are limited; VCCs often flagged.
• Nigeria (NGN) – Strict forex limits; many international VCCs are restricted.
• Venezuela (VES) – Severe exchange controls; foreign VCCs rarely work.
• Egypt (EGP) – VCCs often limited due to forex restrictions.
• Morocco (MAD) – International VCCs are not widely accepted due to local currency controls.
• Russia (RUB) – Many foreign VCCs no longer function due to sanctions and capital controls.

 

Why Are They Restricted?

• Capital controls prevent large-scale movement of money abroad.
• Foreign exchange reserves are protected by limiting cross-border transactions.
• Banking regulations require local banks to verify card sources to prevent fraud.

 

Countries Where Virtual Credit Cards Are Accepted (With Some Restrictions)

Partially Convertible Currencies may allow limited VCC usage:

 

• Brazil (BRL) – Some foreign VCCs work, but fees may apply.
• Turkey (TRY) – Domestic VCCs work, but international ones face restrictions.
• Thailand (THB) – Some international VCCs work, but local banks may impose limits.
• South Africa (ZAR) – Foreign VCCs work but may have cross-border limits.

 

Why Virtual Credit Cards Are Often Blocked in Closed Currency Countries

• Foreign Transaction Bans – Many closed currency countries restrict purchases in foreign currencies.
• Banking System Isolation – Countries like Russia and Venezuela are cut off from international payment networks.
• Local Currency Control – Governments prevent money from leaving the country freely.
• Sanctions & Regulations – Some countries (e.g., Russia, Iran) face financial sanctions, affecting card acceptance.

 

Travel Tips: How to Use Virtual Credit Cards in Restricted Countries

✅ Use local banks' VCCs – Some countries issue domestic virtual cards that work within their system (e.g., India’s RuPay VCCs).

✅ Check digital wallet compatibility – Some VCCs work with Apple Pay, Google Pay, or WeChat Pay even if direct transactions are blocked.

✅ Get a multi-currency travel card – Cards like Wise, Revolut, or Narvi allow spending in multiple currencies.

✅ Have backup payment options – Carry cash, physical credit/debit cards, and research local payment apps.

 

Currency restrictions exist to stabilize economies, prevent capital flight, and maintain government control over monetary policy. However, they can also make international business, tourism, and trade more challenging.

 

If you’re planning to travel, invest, or send money abroad, always check the latest currency restrictions to avoid surprises. Whether dealing with the Hungarian forint (HUF), UAE dirham (AED), or Bahrain dinar (BHD), understanding how the currency’s value is controlled will help you make informed financial decisions.

Travel Tips to Maximize Your Experience in Closed Currency Countries

✅ Exchange money at official banks or licensed exchange bureaus. Avoid street vendors offering "better" rates.

✅ Use hotel exchange services as a last resort. Rates are often unfavorable.

✅ Ask locals about digital payment apps. In places like China, mobile wallets are more common than cash.

✅ Keep all exchange receipts. Some countries require proof to convert leftover money back.

✅ Use small bills and coins. Some places do not accept large bills due to counterfeiting concerns.

How to Get Closed Currencies for Your Travels?

If a country has a closed currency, you might not be able to exchange it before you arrive. Here’s how you can obtain it:

 

• Exchange Foreign Currency Upon Arrival – Airports, banks, or currency exchanges inside the country.
• Use ATMs – Only withdraw from official bank ATMs to avoid scams.
• Exchange at Hotels (Last Resort) – Rates may be higher, but it's an option.
• Ask Locals for Advice – Some may suggest apps or safer exchange locations.
• Consider Peer-to-Peer (P2P) Exchanges – Some travelers trade currency informally but be cautious.

What Is GST (Goods and Services Tax)?

Goods and Services Tax (GST) is a value-added tax applied to most goods and services in many countries.

 

Countries with GST Include:

 

• Canada (5% GST, additional provincial taxes apply)
• Australia (10% GST)
• India (5-28% GST, depending on goods/services)
• Singapore (9% GST from 2024 onwards)
• New Zealand (15% GST)

How Does GST Affect Travelers?

• GST applies to most purchases, including restaurants, hotels, and shopping.
• Some countries offer tax refunds for tourists (e.g., Singapore, Australia, EU countries).
• Check your receipts – In some places, GST is already included in prices, while in others, it is added at checkout.

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FAQ: Closed Currencies & Restricted Markets

What Is a Closed Currency?

A closed currency is a national currency that cannot be freely traded on international markets and can only be exchanged within its home country. Governments impose restrictions to control capital flow, stabilize the economy, and prevent inflation or currency manipulation.

 

Examples of Closed Currencies:

 

• Moroccan Dirham (MAD)
• Egyptian Pound (EGP)
• Argentine Peso (ARS)
• Nigerian Naira (NGN)
• Tunisian Dinar (TND)
• Cuban Convertible Peso (CUP/CUC)

 

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Why Do Countries Restrict Currencies?

Governments restrict currencies to:

 

• Control inflation and capital flight – Prevents rapid devaluation due to excessive foreign exchange.
• Protect foreign reserves – Limits how much foreign currency leaves the country.
• Maintain economic stability – Regulates exchange rates to prevent volatility.
• Encourage local investment – Ensures that money stays within the national economy.

 

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What Is a Restricted Market?

A restricted market refers to an economic system where foreign exchange and capital movement are controlled by the government.

 

Key Characteristics of Restricted Markets:

 

• Limited foreign investment – Foreigners may need special approval to invest.
• Currency exchange restrictions – People cannot freely buy or sell foreign currency.
• Strict banking rules – Harder to transfer money internationally.

Examples of Restricted Markets:

• China – Foreign exchange tightly regulated.
• Russia – Sanctions have led to controlled financial markets.
• Argentina – Strict government control over USD purchases.
• Nigeria – Exchange rate caps and forex shortages.

 

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What Are Partially Convertible Currencies?

A partially convertible currency has some restrictions on foreign exchange but can still be traded internationally under specific conditions.

 

Examples of Partially Convertible Currencies:

 

• Chinese Yuan (CNY) – Controlled exchange rate, restricted outflows.
• Indian Rupee (INR) – Not fully exchangeable outside India.
• Russian Ruble (RUB) – Limited due to sanctions and capital controls.

 

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Which Countries Have Closed Currencies?

These countries impose strict exchange controls, making their currency non-convertible outside their borders:

 

Country	Closed Currency
Algeria	Algerian Dinar (DZD)
Argentina	Argentine Peso (ARS)
Cuba	Cuban Peso (CUP)
Egypt	Egyptian Pound (EGP)
Morocco	Moroccan Dirham (MAD)
Nigeria	Nigerian Naira (NGN)
Tunisia	Tunisian Dinar (TND)
Venezuela	Venezuelan Bolívar (VES)

 

 

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Does Egypt Have a Closed Currency?

Yes, the Egyptian Pound (EGP) is a closed currency because the Egyptian government restricts its exchange outside Egypt.

 

Why Is Egypt a Closed Currency?

• Government control over exchange rates – Limits fluctuations and prevents devaluation.
• Foreign currency shortages – Ensures foreign reserves are available for essential imports.
• Restrictions on taking EGP abroad – Tourists and businesses must exchange money within Egypt.

 

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Why Is the Moroccan Dirham (MAD) a Closed Currency?

The Moroccan Dirham (MAD) is not freely tradable outside Morocco due to:

 

• Strict capital controls – Prevents large-scale money transfers abroad.
• Limited forex market – Only exchangeable within Morocco.
• Government regulations – Ensures economic stability and controls inflation.

 

Tourists must exchange MAD back into foreign currency before leaving Morocco.

 

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Are Closed Currencies Available in the UK?

Most UK banks and currency exchange services do not sell closed currencies (e.g., EGP, MAD, ARS). Some travel agencies or special forex services may offer pre-ordered closed currency but at higher exchange rates. If you're planning to travel to Great Britain with closed currency in your pocket, it might be best to exchange at least some of it for pounds, dollars, or euros before departure.

 

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Where Can I Buy Closed Currencies in the UK?

If you need closed currencies before traveling, try the following:

 

• Specialist foreign exchange providers – Some high-street forex shops (e.g., Travelex, No1 Currency) may sell limited closed currencies.
• Online currency exchange services – Certain platforms allow ordering closed currencies for pickup.
• Airport exchange counters – Some international airports stock restricted currencies (availability varies).
• Wait until arrival – In most cases, it's better to exchange cash at official banks or ATMs in the destination country.

 

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Breaking Barriers in Cross-Border Transactions with Narvi

In a world where closed currencies, restricted markets, and evolving financial regulations shape the way money moves across borders, businesses and entrepreneurs face increasing challenges in managing international transactions. Many countries impose currency controls, high banking fees, and exchange rate limitations, making it difficult to send and receive payments freely.

 

That’s where Narvi Payments comes in—a modern, digital alternative designed to navigate financial restrictions and simplify cross-border transactions. Whether you’re operating in a country with a closed currency, expanding a business across international markets, or looking for a cost-effective way to manage foreign currency accounts, Narvi offers a seamless, compliant, and scalable banking solution.

 

How Narvi Helps You Overcome Financial Barriers

✅ Effortless Account Setup – Open your account in under 10 minutes without traditional banking complexities.

✅ Borderless Banking with a Euro IBAN – Send and receive Euro payments in over 100 countries.

✅ Lower Transaction Costs – Avoid excessive banking fees with Narvi’s transparent pricing.

✅ Reliable SWIFT Payments – Ensure fast, secure, and traceable international money transfers.

 

As currency regulations tighten and digital finance expands, Narvi provides a secure, regulated, and innovative way to navigate restricted markets. As a licensed electronic money institution under the Finnish Financial Supervisory Authority, Narvi ensures compliance, security, and financial freedom in an ever-changing global economy.

 

Navigating the World of Closed Currencies and Financial Restrictions

Understanding closed currencies, restricted markets, and cryptocurrency legality is essential for anyone involved in international travel, business, or investment. Whether you're planning a trip, expanding a business, or trading in global markets, the way currencies are controlled can have a major impact on your financial decisions.

 

For travelers, closed currencies mean planning ahead—knowing where and how to exchange money, what payment methods work, and how to avoid financial pitfalls. In some destinations, digital payments and prepaid cards offer alternatives, while in others, cash remains king.

 

For businesses and investors, restricted markets can pose challenges but also opportunities. Governments control capital flow and exchange rates to stabilize their economies, but this can lead to foreign exchange shortages, black-market rates, and investment barriers.

 

At the same time, cryptocurrency is changing the landscape, offering a potential workaround to currency controls and restricted markets. Some countries have embraced it, others have banned it, and many remain in a legal gray area.

 

As global finance evolves, so too must our approach to handling money across borders. Whether you're dealing with the Belarusian ruble, Brazilian real, or Bitcoin, the key is being informed, adaptable, and financially prepared.

 

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Originally published May 22, 2017. Updated February 14, 2025.

 

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Disclaimer

 

B2Bpay.co does not provide tax, investment, legal or accounting advice. The material on this page has been prepared for informational purposes only. It should not be relied on for financial or legal advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.