Some Strategies Adopted by Users to Bypass Government Crypto Ban
1. Use of Virtual Private Network (VPN)
Virtual Private Network (VPN) is used for anonymous online browsing. This is attained by routing the encrypted activities of the users. Other users will not be able to know or have access to the users' information. VPN allows its users to pick the country of their choice while browsing. Since some VPNs are free to use, a crypto user can easily access their exchange account or private wallets with them. Through this, the government will not be able to receive information concerning them. Using VPNs is one of the most effective strategies to bypass crypto ban.
2. Peer-to-Peer Transactions
Most top Cryptocurrency exchanges like Binance, Mexc, Kucoin, LBank, Crypto.com, Gate.io, and others have established peer-to-peer transactions. This is known in the crypto space as P2P trades. P2P allows users in a given country to trade on their cryptocurrency assets and the local fiat. The exchange acts as an escrow service provider in settling transactions and disputes that might arise. Users can now receive funds in exchange for their cryptocurrencies as a normal bank deposit.
3. Purchase of Personal Goods
At present, there is a rise in the adoption of cryptocurrencies around the world. Statistics have shown that there are over 15,000 merchants that accept Bitcoin as a medium of exchange. In this list are top Fortune 500 companies like Overstock, AT&T, Microsoft, Amazon, and others. Cryptocurrency users can pay with coins and tokens and then receive the imported goods to their address.
The purchased goods can be used personally or sold to receive cash. This gives them the opportunity to save or earn extra income from their crypto than buying the goods from their local market.
4. Relocation to Countries That Allow Crypto Trade
This is one of the strategies used by big crypto investors to bypass crypto ban imposed by governments. Some cryptocurrencies have given their investors huge returns. Irrespective of the present market downtrend, Shiba Inu (SHIB) investors have received a return on investment (ROI) of 95878 times in the past 21 months. This means that each $1 investment has a present return of $95878 according to CoinMarketCap.
An investor with an initial investment of $10 on SHIB will be worth $958780 presently. It will be risky for such an investor to attempt using the bank to withdraw since the account could be frozen. Hence, migration to crypto-friendly countries will enable them to withdraw and then send it to their local account.
5. Sell to Friends Abroad in Exchange for Fiat
To save the cost of getting travel documents, visa, and flight ticket, trusted friends abroad can be used as proxies to sell in exchange for fiat. Caution should be taken when using this option. The friend is trusted to avoid defrauding of the user.
Also, the jurisdiction of the friend should be considered. This is because some jurisdictions tax cryptocurrencies. The friend might be required to pay tax on such withdrawal since it will be taken as earnings. It is, therefore, necessary to check before adopting this strategy.
6. Use of Local Exchanges
Irrespective of the ban in some countries, some local cryptocurrency exchanges still trade on them. Their users are required to get verified before trading with them. Also, some of the local exchanges have international offices. Once the international office has confirmed the receipt of the crypto deposit, they inform their local office to transfer the local currency equivalent.
7. Payment for International Purchase
Some countries are experiencing an inadequate supply of the United States Dollar that is needed to meet their import demands. This has made local importers look for other means of sourcing fiat to meet their international business transactions. With the help of local crypto users who are willing to sell their coins, they can buy from them at a moderate price and then send them to their foreign business partner.
Conclusion
Cryptocurrency has come to stay since its transactions are mostly anonymous. With the strategies mentioned above, can try to bypass the crypto ban. However, considering the massive potential of cryptocurrencies, it'd be wise for governments across the world to legalize them. Hence, the government could partner with both local and international bodies in making laws and policies that would make its use safe.