Underground Crypto Trading in Tunisia: How It Works and Why It’s Growing

When the Central Bank of Tunisia banned all cryptocurrency transactions in May 2018, most people assumed it would kill crypto dead. Instead, it sparked a quiet revolution. Today, thousands of Tunisians trade Bitcoin, Ethereum, and USDT every day-using VPNs, cash meetups, and international P2P platforms-all while risking arrest. This isn’t some fringe activity. It’s a fully functioning underground economy, born from frustration, tech-savviness, and the simple need to access global finance.

How the Ban Backfired

The Central Bank of Tunisia (BCT) didn’t just discourage crypto-it made it illegal. Any buying, selling, or holding of digital currencies became a criminal offense. Banks were ordered to freeze accounts linked to crypto transactions. Exchanges were blocked. Even searching for crypto websites could trigger red flags. But here’s the twist: the ban didn’t stop trading. It just pushed it underground.

People didn’t give up. They got smarter. They started using Virtual Private Networks (VPNs) to bypass government firewalls that block Binance, KuCoin, and OKX. They switched to peer-to-peer (P2P) trading, where buyers and sellers connect directly without a central exchange. No bank account needed. No government oversight. Just two people, a VPN, and a WhatsApp group.

Bitcoin became the most popular choice-not because it’s flashy, but because it’s easy to move across borders. USDT (Tether) is a close second. It’s stable, so traders use it to avoid Bitcoin’s wild price swings while still bypassing the Tunisian Dinar’s inflation. Ethereum is growing fast too, especially among younger traders who want to experiment with DeFi and NFTs.

The Tools of the Trade

You won’t find a licensed crypto exchange in Tunisia. None. Not one. So traders rely entirely on international platforms that don’t require local registration. Binance P2P is the most used. LocalBitcoins still has a small but loyal user base. Others like MEXC, Gate.io, and Nexo are common too. These platforms let you trade directly with someone in another country using bank transfers, cash deposits, or even mobile money.

But here’s the catch: Tunisian banks block any transaction that looks even remotely like crypto. If you deposit money from a P2P trade, your account gets frozen. Sometimes for weeks. Sometimes permanently. So traders developed workarounds. Some use cash couriers-people who physically carry money between buyers and sellers in public places like cafés or parks. Others deposit cash into third-party accounts, often held by friends or family abroad. A few even use hawala-style informal networks, where money moves through trusted intermediaries without ever touching a bank.

The most common method? Buying USDT from a trader in Turkey or Egypt, then selling it locally for Tunisian Dinars in cash. It’s slow. It’s risky. But it works.

Legal Risks Are Real

In 2021, a 17-year-old boy was jailed for running a small crypto exchange from his bedroom. He wasn’t laundering money. He wasn’t scamming people. He just helped friends buy Bitcoin. He spent six months in jail. That case made headlines. It scared a lot of people. But it didn’t stop the trade.

The government monitors bank transactions closely. If you send money to a known crypto wallet address-even accidentally-you could get flagged. Banks use automated systems that look for patterns: rapid deposits and withdrawals, transfers to foreign exchanges, frequent small transactions. Once flagged, you’re not just risking your account-you’re risking your freedom.

There’s no official public record of how many people have been arrested, but court documents and human rights reports confirm dozens of cases since 2018. Most involve young men under 30. Many are students or recent graduates. They’re not criminals. They’re just trying to protect their savings from inflation or send money to family abroad.

Why the Government Can’t Stop It

Here’s the irony: while citizens are being prosecuted, the government is quietly building its own blockchain system. Poste Tunisienne, the national postal service, is developing a blockchain-based payment platform. The Central Bank is researching a Central Bank Digital Currency (CBDC). Tech startups in Tunis and Sfax are working on blockchain applications for supply chains and digital IDs.

The state wants blockchain technology. It just doesn’t want decentralized crypto. That contradiction is glaring. It’s like banning smartphones but letting people use the internet on landlines.

The truth? Enforcement is patchy. Police don’t have the resources to track every crypto transaction. Many officers don’t even understand how Bitcoin works. So while the law is strict, the reality is messy. Some traders operate openly in online forums. Others meet in person with no fear. The underground market is too big, too decentralized, and too well-connected to shut down.

Who’s Leaving-and Who’s Staying

One of the biggest costs of the ban isn’t jail time. It’s brain drain. Tech talent is leaving. Entrepreneurs who built crypto-related apps in Tunisia are moving to Canada, Switzerland, and Georgia. They take their skills, their ideas, and their future tax contributions with them.

Those who stay? They adapt. Some focus on blockchain tech that doesn’t involve crypto-like tracking agricultural supply chains or securing voting systems. Others become crypto educators, teaching others how to use VPNs safely or how to avoid bank detection. A few even run small training programs for women in rural areas, helping them use crypto to sell handmade goods internationally.

It’s not glamorous. But it’s survival.

Change Is Coming-But When?

There are signs the government is reconsidering. In late 2024, a parliamentary committee began drafting a bill to decriminalize personal crypto ownership. The proposed law would allow individuals to hold and trade crypto under a licensing framework, similar to what Rwanda and Nigeria have done. It would also create a path for local exchanges to operate legally-if they meet strict AML and KYC rules.

The Central Bank of Tunisia has signaled openness to fintech innovation. It’s already issued licenses to digital payment providers. It’s testing a CBDC. These aren’t small steps. They suggest the government realizes prohibition isn’t working.

But change moves slowly. There’s still strong resistance from conservative factions who see crypto as un-Islamic. Others fear losing control over the financial system. So while the draft bill is under review, enforcement continues. No one knows if the law will change in six months-or six years.

What This Means for You

If you’re in Tunisia and you’re trading crypto, you’re part of a quiet but powerful movement. You’re not just buying Bitcoin. You’re pushing back against an outdated system. You’re using technology to reclaim financial freedom.

But you’re also taking a risk. Always use a reliable VPN. Never link your real identity to trades. Use cash when possible. Keep records offline. And never, ever tell your bank.

If you’re outside Tunisia and you’re thinking of helping someone trade crypto there? Don’t send money directly. Don’t use your bank. Use P2P platforms with escrow protection. And understand the legal dangers they face.

This isn’t about speculation. It’s about access. It’s about dignity. It’s about a generation refusing to be locked out of the global economy.