Early Cryptocurrency Restrictions: How Governments Tried to Stop Crypto Before It Took Off

When early cryptocurrency restrictions, government attempts to block or control digital currencies before they became mainstream first appeared, most thought they’d kill crypto before it grew. But they didn’t. Instead, they forced users to get creative—using P2P networks, offshore exchanges, and cash trades to keep going. These restrictions weren’t just laws on paper; they were real barriers that shaped how crypto evolved in places like South Korea, Tunisia, Saudi Arabia, and Ecuador.

Take crypto regulations, official government rules that define how digital assets can be bought, sold, or used. Countries like Tunisia banned crypto entirely in 2018, with prison terms for violators. Meanwhile, South Korea cracked down on KYC failures, slapping Upbit with potential $34 billion fines for not verifying half a million users. These weren’t random actions—they were responses to real problems: money laundering, tax evasion, and unregulated trading. But here’s the twist: the more governments tried to shut crypto down, the more users found ways around it. In Saudi Arabia, over four million people use global exchanges and crypto ATMs despite no legal recognition. In Ecuador, people trade Bitcoin and USDT in cash just to protect their savings from inflation—not because they’re criminals, but because the banks aren’t working for them.

crypto exchange shutdowns, the collapse or closure of platforms due to regulatory pressure, hacks, or lack of compliance became common as the industry grew. Lykke Exchange vanished after a $19.5 million hack. Bitsdaq disappeared in 2025 with no explanation. EtherMuim and Rokes Commons? Total scams built to look real. These weren’t just failures—they were warnings. When exchanges didn’t follow rules, they got crushed. But the ones that survived? They adapted. They built KYC systems, partnered with regulators, or moved to crypto-friendly jurisdictions. And that’s what you’ll see across these posts: not just bans and crackdowns, but how real people, real platforms, and real markets pushed back.

What ties all these stories together? The same pattern: restriction leads to innovation. When one door shuts, users find another—whether it’s a DeFi exchange on Polygon, a P2P trade in Riyadh, or a token swap that turns BNX into FORM. You won’t find fluff here. Just facts about what happened, why it mattered, and how it changed the game. Below, you’ll find real reviews, real failures, and real workarounds from the early days of crypto’s battle with control. This isn’t history—it’s the blueprint for how crypto survives when the system tries to stop it.