At least, in my country, selling bitcoin for cash is fine, and we can sell it in the local exchange. I still buy and sell bitcoin, and I don't have a problem with this. But I don't know with the other country, and I think some country prohibited their people from doing this. I think soon if the government can accept bitcoin, it will be great news for the people because they don't have to afraid to buy and sell bitcoin.
Bitcoin as a digital currency is freely traded in countries that have legalized it, of course exchanging cash is no problem. Unlike bitcoin owners who live in countries that ban bitcoin.
From this experience, exchanging bitcoin into cash can be done through bitcoin exchanges located in countries that legalize bitcoin to USD, then transfer to the owner's account in local currency.