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

Since May 2018, the Central Bank of Tunisia (BCT) has made it illegal to buy, sell, or trade any cryptocurrency. The law is clear: no exchanges, no wallets, no transactions. But here’s the truth - crypto is still moving in Tunisia. Not through banks. Not through official channels. But through hidden networks, encrypted apps, and cash handoffs in parking lots. People aren’t ignoring the law because they’re reckless. They’re doing it because they have no other choice.

Why the Ban Exists - And Why It Didn’t Work

The BCT banned crypto to protect the Tunisian dinar, prevent money laundering, and stick to Islamic finance rules that reject speculative assets. But the ban didn’t stop demand - it just drove it underground. By 2025, over 180,000 Tunisians were estimated to be actively trading crypto, according to local tech analysts. That’s nearly 1 in 70 people. And none of them are using licensed platforms - because there aren’t any.

The government thought cutting off access to crypto websites would kill the market. Instead, people started using VPNs. Not just a few - thousands. Apps like NordVPN, ExpressVPN, and ProtonVPN became everyday tools, not luxury items. Tunisians learned how to bypass firewalls, change DNS settings, and mask their IP addresses. It wasn’t hard. It was necessary.

How Trading Actually Happens

There are no crypto exchanges in Tunisia. No Binance Tunisia. No Coinbase Tunisia. But you can still trade - if you know where to look. The real market runs on peer-to-peer (P2P) platforms. Binance P2P and LocalBitcoins are the most common. Traders list offers in Tunisian dinars (TND), and buyers find them through encrypted chat apps like Telegram or Signal.

Here’s how a typical trade works: A buyer finds a seller offering 0.5 BTC for 18,000 TND. They agree on a time and place - often a quiet café in Tunis or Sousse. The buyer sends the cash in a sealed envelope. The seller confirms receipt on the P2P platform, and the crypto is released. No bank involved. No traceable digital trail. Just cash and code.

Some traders skip the meetups entirely. They use mobile money services like Ezzet or Wizz to transfer cash digitally, then convert it into crypto through P2P. Others trade with friends, family, or coworkers. The system is informal, trust-based, and deeply local.

What Cryptocurrencies Are Used

Bitcoin is still the most popular. It’s the original, the most recognizable, and the easiest to convert to cash. But Ethereum and USDT (Tether) are catching up fast. USDT is especially favored because it’s pegged to the U.S. dollar. For Tunisians dealing with inflation that hit 9.1% in 2024, holding a stablecoin is a way to protect savings. One trader in Sfax told a local journalist: “I don’t trust the dinar anymore. I trust the blockchain.”

Other coins like Solana and Polygon are gaining traction among younger traders who want to experiment with DeFi or NFTs. But they’re still niche. The core market sticks to the big three: BTC, ETH, USDT.

The Banking Blockade

Tunisian banks don’t just ignore crypto - they actively hunt for it. Every transaction that even looks like crypto is flagged. If you deposit 5,000 TND from an unknown source, your account gets frozen. If you withdraw cash right after a crypto sale, the bank calls you in for “clarification.”

There are no official ways to cash out. No licensed crypto-to-dinar ATMs. No bank partnerships. So traders have to get creative. Some use third-party money changers who operate in the black market. Others trade crypto for imported goods - phones, laptops, even luxury watches - and resell them. A few have even started bartering crypto for services: web design for Bitcoin, tutoring for Ethereum.

The result? A parallel financial system. One that runs outside the law, but inside the real economy.

Legal Risks Are Real - And Getting Worse

In 2021, a 17-year-old boy in Kairouan was arrested for running a small P2P crypto exchange out of his bedroom. He had 12 clients. He was jailed for three months. His case made national news. The government used it as a warning: “This is not a gray area. It’s a crime.”

Since then, enforcement has tightened. Banks now use AI tools to scan transaction patterns. If you buy crypto on a Friday and withdraw cash on Saturday, you’re flagged. If you use a foreign SIM card or a VPN, your internet provider may report you. In 2023, over 200 accounts were frozen for suspected crypto activity. Ten people were formally charged.

Penalties include fines up to 50,000 TND (about $16,000) and up to three years in prison. No one has been sentenced to the maximum yet - but the threat is real. Many traders now use burner phones, fake IDs, and encrypted apps to avoid detection. Some have stopped trading altogether.

The Hypocrisy of the State

Here’s the biggest contradiction: while citizens are jailed for trading Bitcoin, the Tunisian government is building its own blockchain system. Poste Tunisienne, the national postal service, is developing a blockchain-based payment platform. The Ministry of Communications is testing a blockchain voting system. And the BCT is actively researching a Central Bank Digital Currency (CBDC) - a government-controlled digital dinar.

So why is private crypto illegal, but state crypto okay? The answer is control. The government doesn’t want decentralized money. It wants digital money it can track, tax, and shut off at will. The irony is thick: Tunisians are risking jail to use open, censorship-resistant tech - while the state builds its own version of the same tech, but locked down.

Brain Drain and the Tech Exodus

The ban isn’t just hurting traders - it’s pushing talent out. Young developers, blockchain engineers, and fintech founders are leaving. Canada, Switzerland, and Georgia now have thriving Tunisian crypto communities. One startup founder from Sousse moved to Lisbon in 2023. He now runs a DeFi project with 15 Tunisian expats. “I could have built this here,” he said. “But I’d be in jail.”

Tunisia’s tech sector is losing its most innovative people. Startups that could have created jobs, attracted foreign investment, and modernized the economy are being forced to relocate. The government calls it “brain drain.” The people call it “escape.”

Change Is Coming - But When?

There are signs the ban might end. In late 2024, a parliamentary committee began drafting a bill to decriminalize crypto possession and create a licensing system for P2P platforms. The BCT has held closed-door meetings with fintech firms. Some officials are quietly admitting the ban failed.

But change moves slowly. The BCT still insists crypto is “high-risk” and “unregulated.” The Finance Ministry worries about tax losses. Religious conservatives fear it undermines Islamic finance. And the security services don’t want to lose their surveillance tools.

Still, pressure is growing. Over 40,000 Tunisians signed a petition in 2024 calling for legal recognition of crypto. Tech groups are lobbying. Even some former prosecutors now say the jail sentences are disproportionate.

The most likely path? A phased approach: first, decriminalize holding crypto. Then, allow licensed P2P platforms with strict KYC. Finally, regulate exchanges - but only if they’re based in Tunisia and comply with AML rules. That could happen by 2027. Or it could take another decade.

What This Means for You

If you’re a Tunisian citizen: you’re not alone. Thousands are doing the same thing. But the risks are real. Use discretion. Never trade through your bank. Avoid large, frequent transactions. Don’t use your real name on P2P platforms. And never store large amounts of crypto in one wallet.

If you’re outside Tunisia: don’t assume crypto is dead there. It’s thriving - just quietly. The underground market is smarter, more resilient, and more organized than the government admits. And if the ban lifts, Tunisia could become one of North Africa’s fastest-growing crypto hubs.

For now, the crypto market in Tunisia is a paradox: illegal, but unstoppable. Suppressed, but growing. Hidden, but essential. The state wants to control the future of money. But the people are already living in it.