How Citizens in Banking-Restricted Countries Access Crypto Exchanges

When your bank won’t let you send money abroad, when your government blocks crypto apps, and when your local currency is falling fast - what do you do? For millions of people in countries like Nigeria, Vietnam, Bangladesh, and Iran, the answer isn’t waiting for permission. It’s finding a way. And that way is cryptocurrency.

Why banks won’t help - and what that forces people to do

In Nigeria, the Central Bank banned banks from handling crypto transactions in 2021. In Bangladesh, trading crypto is illegal under money laundering laws. In China, all crypto exchanges are shut down, and financial institutions can’t touch digital assets. In Vietnam, you can be fined over $8,000 just for buying Bitcoin. These aren’t theoretical rules. They’re enforced with arrests, frozen accounts, and blocked websites.

But here’s the thing: people still trade. In 2024, Nigeria ranked fourth globally in crypto adoption, even though its central bank tried to stop it. Vietnam had over 5 million crypto users. Iran and North Korea saw massive spikes in Tor browser use. Why? Because crypto isn’t just an investment - it’s a lifeline. For people dealing with inflation, capital controls, or political instability, crypto is how they preserve value, send money home, or even buy food.

The tools they use: VPNs, P2P, and no-KYC exchanges

Most people don’t log into Binance or Coinbase directly. Those platforms block users from restricted countries. So they use alternatives.

First, VPNs. NordVPN reported a 342% jump in users from Nigeria between 2023 and 2024. ExpressVPN and Surfshark are just as popular. These tools hide your location, making it look like you’re in the U.S., Germany, or Singapore - places where crypto is legal. But it’s not foolproof. Governments in China and Iran sometimes block known VPN servers. Users have to keep switching providers, which costs money and time.

Next, peer-to-peer (P2P) platforms. This is where most of the action happens. On Paxful and LocalBitcoins, you don’t need a bank account. You buy Bitcoin by paying someone in cash, via mobile money, or even by sending gift cards. A Nigerian user might buy $500 in Bitcoin by transferring airtime credit to a seller on Paxful. A Vietnamese trader might pay a middleman in local currency through a bank transfer - and get Bitcoin in return. Paxful alone had 1.2 million active users from restricted countries in early 2025.

Then there are no-KYC decentralized exchanges like Uniswap, PancakeSwap, and Bisq. These platforms don’t ask for your ID, passport, or selfie. You connect your wallet - like Trust Wallet or MetaMask - and trade directly on the blockchain. But there’s a catch: low liquidity. Bisq averages just $1.2 million in daily trades. Coinbase does $14.7 billion. That means if you want to move $10,000, you might have to wait hours or pay a big premium.

Gift cards, hawala, and digital workarounds

Some users bypass banks entirely by turning everyday items into crypto. Gift cards are huge. You buy a $100 Amazon or iTunes card with naira, dong, or taka - then list it on Paxful or Bitrefill. Someone else buys it with Bitcoin. You get crypto. They get a gift card. Chainalysis found $427 million in gift card-based crypto trades from restricted countries in 2024.

In the Middle East and parts of Africa, people use hawala - an old-school, informal money transfer system. Instead of sending cash, you give money to a local agent. They call their counterpart in Dubai, where crypto exchanges are legal under VARA regulations. The counterpart sends Bitcoin to your wallet. No bank involved. Over $30 billion flowed through these networks in 2023-2024.

In Latin America, apps like Bitcoin Beach Wallet let users trade Bitcoin directly from their phones. No ID. No bank. But transactions take 10 minutes to confirm - not seconds like with PayPal. Still, for people without access to traditional finance, it’s better than nothing.

The hidden costs: scams, delays, and frozen accounts

It’s not all smooth sailing.

A 2025 survey of 1,247 users from restricted countries found that 63% used a VPN, but 47% had their service cut off during government internet shutdowns. In Bangladesh, over 87 accounts were frozen in January 2025 alone - locking up $412,000 in crypto. On Trustpilot, Chinese users give Paxful a 2.1/5 rating, complaining about 72-hour delays and account bans when they use a Chinese phone number.

Scams are rampant. Because no-KYC exchanges don’t verify users, fraudsters create fake trading pairs, impersonate sellers, or drain wallets with phishing links. Professor David Yermack from NYU found that 67% of users in restricted countries have suffered at least one security incident. Twelve percent lost significant money.

Even when you do everything right, support is nearly nonexistent. Only 37% of no-KYC exchanges offer multilingual customer service. If you’re stuck with a frozen wallet and speak only Vietnamese or Farsi, you’re on your own. Average response time for non-English queries? 58 hours.

How to get started - if you’re in a restricted country

If you’re reading this because you’re in a country where crypto is blocked, here’s what actually works, based on real user guides from Iran, Nigeria, and Vietnam:

1. Download a reliable VPN - NordVPN or ExpressVPN cost around $12/month. Test it before you start.
2. Create a non-custodial wallet - Trust Wallet or MetaMask. Write down your 12-word recovery phrase. On paper. Not on your phone.
3. Buy your first crypto through P2P. Use Paxful or Binance P2P. Look for sellers with high ratings and fast payment methods like mobile money or bank transfer.
4. Transfer that crypto to a decentralized exchange like Uniswap or PancakeSwap. Trade it for other coins if needed.
5. Withdraw to a privacy wallet if you want anonymity. Monero (XMR) or Zcash (ZEC) are better for hiding transactions, but they’re harder to buy and less liquid.
6. Set up recurring access. Maybe you buy gift cards monthly. Or find a trusted P2P trader you can use again.
7. Join a local community. Telegram channels like “Crypto Without Borders” have 147,000 members and country-specific guides.

Most people take 3 to 5 weeks to get this system working reliably. And it’s not easy. You need to learn how to manage seed phrases, spot scams, and navigate changing regulations.

The bigger picture: crypto as resistance

This isn’t just about trading. It’s about survival.

In Nigeria, where inflation hit 33% in 2024, people use crypto to protect their savings. In Venezuela, Bitcoin is used to pay for medicine. In Iran, families send remittances through crypto to avoid currency controls. The Chainalysis Global Adoption Index shows that despite bans, crypto use keeps growing in these places.

Even regulators are catching on. In January 2025, OKX blocked users from Algeria, Bangladesh, and Nepal. But instead of stopping crypto use, it pushed people toward decentralized platforms. Uniswap v4 saw an 187% spike in users from those countries.

The U.S. is now pushing rules that would require KYC on all transactions over $300 - a move that could break the P2P model many rely on. But history shows that when governments try to shut down access, people find new ways.

The future won’t be about banning crypto. It’ll be about who controls the tools to use it. And right now, the users in restricted countries are winning that battle - one P2P trade, one VPN, one gift card at a time.