How Citizens in Banking-Restricted Countries Access Crypto Exchanges

When your bank won’t let you send money abroad, and the government blocks crypto apps, where do you turn? For millions in countries like Nigeria, Vietnam, Bangladesh, and Iran, the answer isn’t waiting for permission-it’s building a new system from the ground up. Crypto isn’t just an investment here. It’s a lifeline. And people aren’t waiting for regulators to catch up. They’re already using it-every day-to protect their savings, pay for essentials, and send money home.

Why banks block crypto-and what that means for regular people

Countries like Nigeria, China, and Bangladesh don’t just discourage crypto. They ban it. The Central Bank of Nigeria shut down crypto transactions in 2017. In 2021, Turkey made it illegal to use Bitcoin for payments. China cracked down on mining and trading entirely, calling it a threat to financial stability. In Algeria, you can face prison for trading crypto. Bangladesh’s laws treat it as money laundering.

But here’s the twist: these bans didn’t stop people. They just forced them to get smarter.

In Nigeria, where inflation hit 33% in 2024 and the naira lost nearly half its value since 2020, people didn’t stop buying Bitcoin. They just stopped using banks to do it. Instead, they turned to peer-to-peer (P2P) platforms like Paxful and Binance P2P. In Q1 2025, Nigerian users traded over $1.8 billion in crypto through P2P-up 284% since 2022. That’s not a trend. That’s survival.

How they actually get in: the tools they use

There’s no single way. It’s a patchwork of workarounds, each with risks and trade-offs.

Virtual Private Networks (VPNs) are the first step. If your government blocks Binance or Coinbase, you use a VPN to pretend you’re in Singapore, Germany, or the U.S. NordVPN saw a 342% spike in users from Nigeria between late 2023 and late 2024. Tor browser use jumped 223% in North Korea. You don’t need to be a tech expert-just download an app, turn it on, and connect.

No-KYC exchanges are the next layer. These platforms don’t ask for your ID, passport, or selfie. Think Bisq, Hodl Hodl, and LocalBitcoins. They’re slower, less liquid, and harder to use than Binance-but they’re anonymous. Koinly found 20 exchanges in 2025 that require zero identity verification. For people under surveillance, that’s priceless.

Peer-to-Peer (P2P) trading is the most popular method. In restricted countries, 38% of all crypto transactions happen through P2P. You find someone nearby who wants to sell Bitcoin. You pay them in cash, mobile money, or bank transfer. They send you the crypto. In Vietnam, users trade through Binance P2P using middlemen who accept bank transfers-even though it’s technically illegal. One trader told me he sent 1.2 billion VND ($49,500) this way, paying a 2.5% premium. He didn’t care. He got his Bitcoin.

Gift card arbitrage is another clever trick. You buy a $100 Amazon or Steam gift card with your local currency. Then you list it on Paxful or Bitrefill for Bitcoin. Someone in the U.S. or Europe buys it with dollars, sends you crypto, and you both walk away happy. Chainalysis recorded $427 million in gift card-based crypto trades from restricted countries in 2024. It’s not perfect-it’s slow, and scammers exist-but it works when banks won’t.

Hawala networks are old-school systems that have gone digital. In the Middle East, traders use Dubai-based hawala brokers to convert naira or taka into crypto. These brokers are registered under the UAE’s Virtual Asset Regulatory Authority (VARA), so they’re legal on paper. Between July 2023 and June 2024, they moved over $30 billion in crypto for people from restricted countries. It’s informal, trusted, and hard for regulators to track.

The hidden costs: scams, delays, and frozen accounts

It’s not easy. And it’s not safe.

A 2025 survey of 1,247 users from restricted countries found that 67% had experienced at least one security incident. Twelve percent lost significant money to fake exchanges or phishing scams. Many users on Paxful complain about 72-hour delays. Others get their accounts frozen because they used a Chinese phone number or a Nigerian bank account linked to a blocked institution.

In Bangladesh, over 87 accounts were closed in January 2025 alone. That’s $412,000 in frozen assets. In China, users report being unable to withdraw from Binance because their ID was flagged-even though they used a VPN. The system isn’t foolproof. It’s messy. And it’s constantly changing.

Decentralized exchanges: the quiet revolution

While centralized platforms like Binance face pressure to ban users from restricted countries, decentralized exchanges (DEXs) like Uniswap and PancakeSwap are growing quietly. You don’t need to sign up. You don’t need to verify your identity. You just connect your wallet-like Trust Wallet or MetaMask-and trade directly on the blockchain.

In January 2025, after OKX banned users from Algeria, Bangladesh, and Nepal, Uniswap v4 saw a 187% surge in traffic from those regions. That’s not a coincidence. When big exchanges pull back, people go to the open web.

The downside? Liquidity is thin. Bisq averages just $1.2 million in daily volume. Coinbase does $14.7 billion. If you need to move $10,000 fast, a DEX might not cut it. But if you’re trading $500 at a time to buy food or pay rent? It’s perfect.

Privacy coins: the secret weapon

Some users go even further. They use Monero (XMR) or Zcash (ZEC)-coins designed to hide transaction details. Unlike Bitcoin, where every transfer is public, Monero’s blockchain is unreadable. No one can trace where the money came from or where it went.

Adoption of privacy coins jumped 317% in China and 289% in Iran since 2023. They’re still only 2.3% of the total crypto market-but for people under surveillance, that’s enough. They’re not for trading Bitcoin. They’re for moving value without leaving a trail.

The human side: learning curves and community help

Most people don’t know what a seed phrase is when they start. A World Bank survey found 78% of new users in restricted countries need help backing up their wallets. Lose your seed phrase? Lose your money. Forever.

That’s why community groups have exploded. Telegram channels like “Crypto Without Borders” have over 147,000 members. They share step-by-step guides for Iran, Nigeria, Venezuela, and more. Reddit threads show Nigerian users successfully using Chipper Cash to send money to Bybit. Facebook groups in Bangladesh warn each other about fake admins.

It’s not official. It’s not polished. But it’s real.

What’s next? The arms race continues

Governments aren’t sitting still. The U.S. is pushing rules that would force all exchanges to verify users for transactions over $300. That could block access for people using U.S.-based P2P platforms. India’s new 30% tax on crypto is pushing users to route trades through Singapore. China’s surveillance tech is getting better at detecting VPN use.

Meanwhile, innovation keeps pace. Zero-knowledge proofs-technology that lets you prove you’re allowed to trade without revealing your identity-are expected to grow 340% in restricted markets by 2026, according to Gartner. That could mean more secure, private access without needing a VPN or a middleman.

But here’s the truth: no law can stop people who have no other choice. When inflation eats your salary, when your savings vanish overnight, when you can’t send money to your family abroad-you don’t wait for permission. You find a way.

Crypto isn’t the solution to every problem. But in banking-restricted countries, it’s the only solution that works right now.