Consequences Of Using Crypto In Countries Where Cryptocurrencies Are Banned?

[Good-Guy]

Cryptocurrency is one of the most traded digital asset right now. I know there are a few other kinds of digital assets such as digital gold that are also being traded in the global online market, but the fact of the matter is that cryptocurrency trading remains on top. I have noticed that there are many countries that have banned cryptocurrency trading, but it seems that the ban has not affected the trading activities in such countries. For example, Nigeria is one of the countries where the government actually tried to stop people from trading by banning the digital asset altogether and instructed the Nigeria's central bank to stop dealing in cryptocurrencies.

However, according to many news sources, this ban had no effect at all on the traders and the coin traders are still carrying out the trades. I know that traders would not be able to transfer the money directly, but there are still several ways to withdraw cryptocurrencies without even using your local or central bank. I am not sure about the consequences of trading cryptocurrencies in a country where trading is banned. I personally think that it is safe to trade in a country where cryptocurrency is banned until or unless you openly declare that you are trading in cryptocurrencies. What is your opinions or advice?

 

[moonchild]

There are no any obvious consequences, if you can keep what you do low-key, masking your crypto transactions with other descriptions.

In Nigeria here crypto was banned in 2021, because the government suspected that some selected few are using it for money laundering because of the anonymousity of Crypto, I think it's not a fair policy because most people here in Nigeria use crypto as a means of survival.

This policy forced many crypto start ups to leave the country.

Progressive governments like El Salvador have already adopted bitcoin and in my opinion any struggling government should forward to adopt cryptocurrency because it's the future and it's very obvious.

 

[sajeev1478]

Yes, you are correct. Any form of crypto trading can attract large penalties and even imprisonment in countries where it is banned. If you have some thing which you will like to sell, then perhaps if you have some friend outside of your nation where crypto is ok to trade, then you can send him that and then request him to sell and transfer the money to you....this maybe little cumbersome and may not be free...but this works, considering taxation for both him and you.

 

[Good-Guy]

Yes, you are correct. Any form of crypto trading can attract large penalties and even imprisonment in countries where it is banned. If you have some thing which you will like to sell, then perhaps if you have some friend outside of your nation where crypto is ok to trade, then you can send him that and then request him to sell and transfer the money to you....this maybe little cumbersome and may not be free...but this works, considering taxation for both him and you.

Well, I am sure that utilization of cryptocurrency and even transacting money could lead to punishments and I think it is unfair for the governments to punish people just for using cryptocurrencies. I have read that the Indian government would imprison a person just for using or trading in cryptocurrency. A person could get behind bars for up to one and half year in India. There are similar kind of penalties in other countries, but is there any way you would be hunted down if the government traces your IP address and found that you dealt in cryptocurrencies? What do you think?

 

[Huricanenate]

Just wait it out. If you live in a country that bans crypto, just wait it out - soon all countries will accept it.

 

[sincerem]

Thanks to P2P services, it has really helped us to ignore the massive effect of Nigerian partial crypto ban. The ban isn't a decision made to sanction all crypto relayed transactions in the country. It is simply one that prevents the local commercial banks from accepting crypto payment in exchange of Naira denominated fiat currency. Now are simply using P2P trading method to deal with merchant s who offer us Naira which is our local fiat currency and we offer our crypto to them. At this time it is very easier like before too, I don't see much difference like that. With the P2P kind of trading we are simply exchanging for higher return than when moving funds directly to the bank. I am simply comfortable with the current system, I simply don't want further crypto ban in the country, it will be a damaging one for the citizens crypto endeavors.

 

[Sotherefore]

But the government of Nigeria was not really stopping people from engaging in cryptocurrency because if they actually did that everybody wouldn't even engage in cryptocurrency because they could have banned all cryptocurrency exchanges from operating within the specs of Nigeria and Also cryptocurrency wallets.

Well the only thing the Nigerian government was trying to do was that it was only dissociating the financial institution from participating in cryptocurrency because they consider it to be un official . Probably because of criminal activities in the online space a lot of scammers are using cryptocurrency because it is decentralized and encrypted therefore making it difficult to be tracked.

Countries that has imposed a strict and complete ban on cryptocurrency and as such as you are not permitted to buy or trade cryptocurrency Because you could easily get into problem with the government because whenever a country bans cryptocurrency and it's operation the security of the country will turn against it seeing it as an illegal act and you could easily be arrested if you are found to be participating in cryptocurrency.

Even if you can avoid being banned it will still be very difficult for you to have the freedom to invest and trade fully.

 

[Kingsley]

I was still very new in the crypto system and i was still trying to master the nitty gritty of the system. I came into the crypto currencies market when there was a major boom, it was the season of the bullish trend and I was so excited every penny I invest was turning to gold within a short of time. So I was just consumed with the joy that the market had brought me then. I had heared about crypto currencies trading before but i never knew that it could be that fast so I was really consumed with somuch joy. I knew how the forex market actually operated but the crypto market was showing such hope and I had invest somuch on litecoin as it was my favoured coin as at the time it was somewhere around $69 as at the time and it grew so rapidly. Then all the joy came to a sudden halt when I learnt my government was going to place a ban on the crypto currencies trading activities, I was shocked and wondered what the effects would be. Later I realised that it only affected our withdrawals and deposits . I switched to p2p.