Global Crypto Clampdown: 2 Billion Users Face Restrictions, P2P Exchanges Offer Hope
March 27, 2025
Bitcoin transactions are inherently borderless, yet purchasing applications often face geographic restrictions that limit access for millions of potential users.
According to Chainalysis, over 60 countries impose significant restrictions on crypto purchasing apps, affecting nearly 2 billion users worldwide.
Crypto applications typically detect user locations through methods such as IP address tracking, payment method verification, and Know Your Customer (KYC) requirements.
Regions with moderate restrictions include the United States, Brazil, and Australia, while heavily restricted areas encompass China, Russia, India, and parts of the Middle East.
Local regulations, such as New York's BitLicense and China's crypto ban, frequently compel apps to block access to certain regions entirely.
Some applications choose to avoid high-risk markets where compliance costs outweigh potential profits, resulting in limited options for users in smaller countries.
Peer-to-peer (P2P) exchanges offer a practical solution for bypassing geographic restrictions by directly connecting buyers and sellers, often with fewer limitations than traditional exchanges.
Alternative payment methods, including gift cards and prepaid cards, can enable users to make purchases without disclosing their location, although these methods may carry legal implications.
Residents of the European Union, Singapore, Switzerland, and Canada generally enjoy the easiest access to Bitcoin, thanks to favorable regulations and multiple purchasing options.
Once Bitcoin is acquired, sending it internationally is straightforward, as blockchain transactions are not subject to geographic restrictions and account for about 60% of all Bitcoin transfers by value.
To navigate geographic restrictions safely, security measures such as two-factor authentication and hardware wallets are essential for protecting Bitcoin.
In areas where apps are restricted, Bitcoin ATMs provide physical access, although they often impose high transaction fees ranging from 7% to 12%.
Summary based on 1 source
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FilmInk • Mar 27, 2025
Geographic Restrictions in Crypto Purchasing Apps: How to Buy and Send Bitcoin Anywhere