If it's officially illegal in the country it applies to everyone. You can have coins with you, but you can't trade, register a business that uses cryptocurrencies and such.
You probably wouldn't be able to legally have cryptocurrency in that country if not for its little feature. You don't have it with you when you enter the country, you only have a proof of ownership. You control it but you don't physically take it from place to place so it's impossible to ban it.