Despite bans on domestic cryptocurrency transactions in countries like China, Indonesia, Russia, and Turkey, using crypto payments abroad may remain lawful thanks to jurisdictional nuances in cross-border law. Legal experts maintain that prohibitions typically apply to in-country activities rather than foreign purchases by citizens.
A recent case involves Georgia’s Tripzy travel platform, which now accepts USDT payments from international clients. These include visitors from Russia and Turkey, where crypto payments are barred locally. Observers point out that a transaction conducted outside the citizen’s country may not fall under domestic prohibition especially when it occurs through a non-local entity.
Turkish lawyer Meric Paldimoglu clarifies that since Turkish payment bans target local payment infrastructure, global transactions remain permissible. Similarly, Russian law restricts domestic merchant crypto payments but does not criminalize using crypto when abroad. As a result, Russian tourists in Georgia can legally transact using cryptocurrencies.
Regulators may still scrutinize these setups, especially if they enable sanctions circumvention or money laundering. The Financial Action Task Force and EU regulators could demand stricter cross-border transparency if such practices proliferate. Travel-focused industries using crypto must therefore balance legality with compliance expectations.
This dynamic illustrates a growing trend in regulatory arbitrage where firms host services in crypto-friendly regions while serving citizens from restrictive jurisdictions. The implications are significant: global merchants could grow international crypto sales via regional licensing, even if some customers face domestic bans.
In conclusion, while crypto payments may be disallowed at home, using them abroad often remains legal. Yet businesses facilitating cross-border crypto must stay prepared for evolving global regulation and heightened AML scrutiny.
