It will not be advisable to make transactions in bitcoin within a country where cryptocurrency transactions are illegal by the law. But Imagine this scenario that someone has been using their bitcoins for transaction secretly successfully, and then one day decides to use the bitcoin that they have to make payment for something like a property to the owner of the property, If there is this kind of problem for instance where the owner of the property decides to claim that they did not receive any money in bitcoin, and the case is taken to a law court, what do you think the outcome of the case will be?
If proofs of payment are provided but in cryptocurrency, do you think the court will consider it even though transactions are tagged illegal with it? or will the case be thrown out and the owner of the property with the false claim of not receiving the money be allowed to go freely?
You should never enter into a Bitcoin transaction agreement with any party in a country that does not accept Bitcoin, i.e. where it would be considered a criminal offence.
If you want to do a business deal with a party, you must do the transaction in the local currency of that country, otherwise, if the transaction is done through Bitcoin, and if a party denies the transaction, then both parties will be punished in the legal trouble.
Business people with large transactions will definitely not make silly deals. property sellers can ask buyers to exchange their Bitcoins for the agreed currency and valid in their country. that's what will probably happen.
But if the agreement has been made and the transaction is successful for both parties, what evidence will actually strengthen the case brought to court for legal proceedings? of course, because something is illegal, both of them will not make written evidence of the sale and purchase transaction using Bitcoin as a means of payment. they will make proof of payment using legal currency.
Am sure that both parties wouldn't want to get arrested in a country where Bitcoin is banned and people get arrested for having or trading cryptocurrency or have apps for such crypto business.
Am sure that such kind of Bitcoin transaction that is even supposed to be a secret deal, will first receive confirmation of being credited the said amount of Bitcoin before the document of property is handed over.
There is so much formality these days mostly as it revolves around real estate business and documents such as C of O has to be an inclusive evidence as proof of ownership while the receipt of payment has to be made and documented as well for future reference.
In short, am sure that only wise and knowledgeable persons can make a deal like this and not have a dispute, because both parties has got their end to deal with.