Can someone be punished or sent to jail just by holding bitcoin in banned country?
What will happen in case of trading bitcoin in country where bitcoin is banned?
A ban is a formal or informal prohibition of something. If your country banned the use of crypto currencies, then you can't make any transactions or exchanges using cryptos in that country. If you are trying to overcome the law illegally, you have to suffer for that. There may be chance for getting punished or prisoned.