A crypto owner which lives in a country with a crypto ban, has to convert his coins which he want to sell into something which is legal to sell, like gold.
The conversion part is actually one of the main problems... How can you be sure that you're not going to walk straight into a trap when you're about to sell it in exchange for gold or something else?
- In other words, it's easier said than done, and I didn't even include the other issues [e.g. tracking possibilities and etc...]!When you convert your cryptos into gold, the person who is taking your cryptos does not know who you are or about your legal situation. Maybe the exchange (platform where you have setup the deal) knows it, but they are countless offshore exchanges out there who does not even have any KYCs in place.
In general:
The conversion of Gold <->Crypto and vice versa is common due the crypto-investor can hedge out the risks cryptos can have over some period of time. It's faster and more convenient than finding buyers through an exchange who have to pay for their new coins by bank transfer/check etc.