Underground Crypto Trading in Tunisia: How It Works Despite the Ban

On paper, cryptocurrency is illegal in Tunisia. Since May 2018, the Central Bank of Tunisia (BCT) has banned all crypto transactions-buying, selling, exchanging, even holding digital coins can land you in legal trouble. But if you walk through the streets of Tunis, Sousse, or Gabès, you’ll find hundreds of young people quietly trading Bitcoin, Ethereum, and USDT on their phones, using VPNs to hide their activity from government monitors. The ban didn’t stop crypto. It just pushed it underground.

How Tunisians Bypass the Crypto Ban

There are no licensed crypto exchanges in Tunisia. No Binance, no Coinbase, no local platforms. But that hasn’t stopped people from trading. Instead, they use peer-to-peer (P2P) platforms like Binance P2P and LocalBitcoins. These platforms connect buyers and sellers directly. No central server. No bank involvement. Just two people, one digital coin, and a cash exchange.

To access these sites, Tunisians rely on VPNs. The government blocks crypto-related websites, but a good VPN bypasses those restrictions easily. Most traders use free or low-cost services like Windscribe or ProtonVPN. Some even set up their own private servers. Once connected, they log into P2P platforms, search for sellers offering USDT in Tunisian Dinars (TND), and arrange a meeting.

Cash is king here. Because Tunisian banks automatically freeze any account linked to crypto activity, traders can’t deposit or withdraw money through traditional channels. So they meet in cafés, parks, or even parking lots. One person hands over cash. The other sends crypto instantly. No receipts. No bank records. Just a quick scan of a QR code and a handshake.

Bitcoin and Ethereum are popular, but USDT-Tether-is the real workhorse. It’s stable, pegged to the U.S. dollar, and easy to move across borders. For Tunisians facing inflation and currency devaluation, USDT acts like a digital savings account. A 2023 survey by a local tech group found that 68% of underground traders held USDT as their primary asset, not because they believed in crypto speculation, but because it was the only way to preserve value.

The Legal Risks Are Real

The government doesn’t joke about this. In 2021, a 17-year-old boy was arrested for running a small crypto exchange from his bedroom. He had only 12 customers, mostly friends. He spent six months in jail before being released without charges. But the message was clear: even small-scale trading is seen as a crime.

Banks now have automated systems that flag transactions linked to crypto. If you send money to a known P2P trader’s account, your account gets frozen. The bank calls you in for questioning. You’re asked to prove the money came from a legal source-like a salary or business income. If you can’t, you risk losing access to your own money for months.

The law doesn’t just punish traders. It punishes anyone who helps them. If you’re a shop owner who accepts crypto payments-even as a favor-you could be charged with money laundering. The legal framework treats crypto like a weapon of financial crime, not a technology.

And yet, enforcement is inconsistent. In some cases, police ignore it. In others, they raid homes based on anonymous tips. The lack of clear guidelines means traders live in constant uncertainty. One day, your account is fine. The next, it’s frozen. No warning. No explanation.

Why the Government Can’t Stop It

The BCT claims the ban is about protecting citizens from fraud and financial instability. But there’s a deeper reason: Islamic finance rules. Tunisia’s banking system follows Sharia principles, which prohibit interest-based transactions. Many crypto traders use lending platforms that pay interest on holdings-something the state sees as religiously forbidden.

But the ban has backfired. Instead of reducing crypto use, it created a black market that’s harder to control. Traders are smarter now. They know how to avoid detection. They use burner phones, encrypted messaging apps like Signal, and cash-only deals. They don’t leave digital footprints.

Even more ironic? The government is building its own blockchain system. Poste Tunisienne, the national postal service, is testing blockchain-based payment solutions for remittances and public services. The Central Bank is researching a Central Bank Digital Currency (CBDC). So while citizens are jailed for trading Bitcoin, the state is quietly developing its own version of digital money.

This contradiction isn’t lost on Tunisians. Many ask: If the government can build a digital currency, why is it illegal for us to use Bitcoin?

The Brain Drain Effect

The crypto ban isn’t just hurting individuals-it’s hurting Tunisia’s economy. Every year, dozens of young tech entrepreneurs leave. They move to Canada, Switzerland, Portugal, or Georgia, where crypto is legal and supported. These aren’t just traders. They’re developers, blockchain engineers, fintech founders.

One startup founder, Amine, built a DeFi platform for Tunisian farmers to get microloans using crypto collateral. He got a grant from a European tech fund. But when he tried to open a bank account in Tunisia to receive the funds, his application was denied. He moved to Lisbon last year. His company now employs 12 people-all outside Tunisia.

The World Bank estimates that over 2,000 tech professionals have left Tunisia since 2019 because of the crypto ban. That’s not just lost talent. It’s lost innovation. Lost investment. Lost tax revenue.

Some stay and adapt. Instead of trading crypto, they build blockchain tools for agriculture, logistics, or public records-areas that don’t trigger the ban. One group in Sfax created a blockchain-based system to track olive oil supply chains. It’s legal. It’s useful. And it’s growing.

Change Is Coming-But When?

There are signs the government is reconsidering. In early 2025, a parliamentary committee drafted a bill to decriminalize cryptocurrency possession and create a licensing system for P2P platforms. The draft would allow regulated exchanges, require KYC checks, and impose taxes on profits.

The Central Bank has signaled openness. It’s held meetings with fintech startups. It’s exploring partnerships with international regulators. But progress is slow. The conservative wing of the government still sees crypto as a threat to financial order. The religious establishment still opposes interest-based systems.

For now, the underground market keeps growing. Estimates suggest over 150,000 Tunisians actively trade crypto. That’s nearly 1.5% of the population. And it’s mostly under 35.

The question isn’t whether crypto will return to Tunisia. It’s when. And whether the government will be ready to regulate it-or just keep chasing ghosts in the digital shadows.

What Traders Need to Know Right Now

If you’re trading crypto in Tunisia, here’s what you need to remember:

• Never link your bank account to crypto transactions. Use cash only.
• Use a reliable VPN. Free ones can leak your IP. Stick to ProtonVPN, Windscribe, or Mullvad.
• Stick to USDT. It’s the most stable and easiest to trade for cash.
• Meet in public places. Never trade at home. Record the transaction with a voice note-just in case.
• Don’t use your real name on P2P platforms. Use a pseudonym.
• Keep records of cash deals. If your account is frozen, you’ll need proof it wasn’t crypto-related.

Frequently Asked Questions

What’s Next for Crypto in Tunisia?

The underground market isn’t going away. It’s getting better. More people are learning how to trade safely. More young coders are building tools to help others avoid detection. And more traders are realizing they’re not just breaking rules-they’re building an alternative financial system.

The government may eventually realize that banning technology doesn’t stop it. It just makes it harder to control. The real question isn’t whether Tunisia will allow crypto. It’s whether it will choose to regulate it-or keep losing its brightest minds to other countries.