OFAC Sanctions Relief: How Syrian Crypto Users Gained Access to Global Markets in 2025

What Changed for Syrian Crypto Users in 2025?

Before June 2025, if you were a Syrian citizen trying to use Bitcoin, Ethereum, or any other cryptocurrency, you were essentially locked out of the global digital economy. U.S. sanctions made it illegal for you to interact with almost any major exchange, wallet provider, or DeFi platform based in the United States. Even sending a small amount of crypto to a family member abroad could trigger legal risks - not because you were doing anything wrong, but because the entire country was under a blanket financial blockade.

That changed on July 1, 2025. The U.S. government lifted its comprehensive sanctions on Syria. Not just eased. Not just relaxed. Lifted. The Office of Foreign Assets Control (OFAC) removed the Syrian Sanctions Regulations (SySR) entirely from the Code of Federal Regulations. For the first time in over 20 years, Syrian citizens could legally access U.S.-based cryptocurrency services without fear of fines, asset seizures, or criminal charges.

The Legal Shift That Freed Syrian Crypto Users

The change didn’t happen overnight. It was the result of Executive Order 14312, signed by President Trump on June 30, 2025. This order revoked six major sanctions orders dating back to 2004 - the same ones that had been used to block Syrian banks, freeze assets, and cut off financial ties with the West. The national emergency declared in 2004 over Syria’s support for terrorism and occupation of Lebanon was officially terminated.

By August 26, 2025, OFAC completed the process by deleting the entire Syrian Sanctions Regulations from federal law. No more SySR. No more blanket bans. Instead, OFAC introduced a new framework called the Promoting Accountability for Assad and Regional Stabilization Sanctions Regulations (PAARSS). This wasn’t just a name change - it was a policy shift. The goal was no longer to punish the entire population, but to target specific individuals: regime officials, human rights abusers, Captagon traffickers, and terrorist affiliates.

Who Can Now Use Crypto Legally in Syria?

Before 2025, if your name appeared on the SDN List - even by accident - you were blocked. You couldn’t open a Coinbase account. You couldn’t use a Ledger wallet linked to a U.S. exchange. You couldn’t even receive crypto from a friend in the U.S. without risking penalties.

OFAC removed 518 individuals and entities from the SDN List. That means thousands of ordinary Syrians - teachers, doctors, small business owners, students - suddenly became eligible to use global crypto platforms. No more needing a VPN, a shell company in Turkey, or a friend in Lebanon to send them Bitcoin. They could sign up directly.

General License 25, issued in May 2025 and still active, gave blanket authorization for transactions that were previously prohibited. This included everything from buying crypto on Binance or Kraken to using MetaMask, Trust Wallet, or participating in decentralized finance (DeFi) protocols like Aave or Uniswap.

What’s Still Blocked?

But here’s the catch: not everyone in Syria is free to use crypto without restrictions. OFAC still maintains sanctions on over 100 people and organizations tied to the Assad regime, military intelligence, human rights violations, and drug trafficking. If you’re a senior official in the Syrian Central Bank, or you’re linked to a Captagon lab in Homs, you’re still blocked. And crypto platforms are required to screen for these names.

This creates a new challenge. Exchanges like Coinbase, Kraken, and Binance now have to build smarter systems. They can’t just say “Syria is open” and let everyone through. They need to identify who’s sanctioned and who isn’t. That means collecting more personal data - ID documents, addresses, employment history - to verify users. For many Syrians, this is a step forward. For others, it feels like trading one kind of surveillance for another.

Technology Access Got Easier Too

It wasn’t just financial access that improved. The Bureau of Industry and Security (BIS) lifted export controls on cryptocurrency-related technology. On September 2, 2025, License Exception Syria Peace and Prosperity (SPP) went into effect. This allows U.S. companies to legally export mining hardware, blockchain servers, and even software tools to Syria without needing a special license.

Before this, if a Syrian developer wanted to set up a node for Ethereum or run a Bitcoin mining rig, they had to smuggle equipment in or pay inflated prices on the black market. Now, they can order a miner from Bitmain or a server from AWS and have it shipped directly. This could spark real growth in Syria’s local blockchain infrastructure - something that was nearly impossible under the old sanctions.

What This Means for Syrian Crypto Adoption

Before 2025, crypto in Syria was mostly used for survival. People turned to Bitcoin to receive remittances from relatives abroad, to pay for medical supplies, or to bypass hyperinflation. But it was risky, slow, and expensive. Most transactions went through intermediaries - people in Jordan or Lebanon who would cash out crypto and send cash via hawala.

Now, direct access means faster, cheaper, and safer transfers. A Syrian mother in Aleppo can receive crypto from her daughter in Canada and convert it to Syrian pounds using a local exchange - no middleman, no fees, no delay. A freelance graphic designer in Damascus can invoice clients in the U.S. in USDC and get paid in minutes.

Local crypto exchanges are starting to pop up. Platforms like SyCryptoPay and DamasChain are launching with U.S. compliance partnerships. They’re integrating KYC tools that check against the updated SDN List. Some are even partnering with international banks to offer crypto-to-fiat on-ramps.

The Risks Haven’t Disappeared

Just because sanctions are lifted doesn’t mean everything is smooth. Many Syrians still don’t have reliable internet. Power outages are common. Mobile data is expensive. And while the U.S. lifted its restrictions, other countries haven’t. Turkey, Lebanon, and Jordan still have strict rules about crypto flows from Syria. Some exchanges still refuse to serve Syrian users out of caution - even though they’re now legally allowed to.

There’s also the risk of over-compliance. A small crypto startup in New York might decide it’s easier to block all Syrian users than to build a complex screening system. That’s not illegal, but it’s not helpful either. The real test will be whether global platforms choose inclusion over fear.

What’s Next?

OFAC has signaled that more rules are coming under the PAARSS framework. They plan to add interpretive guidance, new general licenses, and possibly even restrictions on certain types of crypto transactions - like anonymous mixers or privacy coins. The goal is to prevent abuse while protecting access.

For Syrian crypto users, the future looks more open than it has in decades. But it’s not a free-for-all. It’s a new system - one that requires responsibility, verification, and smart compliance. The tools are there. The legal barriers are gone. Now it’s up to users, platforms, and regulators to make sure this opportunity leads to real economic recovery, not just another loophole for the powerful.

What This Means for the Rest of the World

Syria is now a test case. Can targeted sanctions work in the crypto world? Can you isolate bad actors without punishing civilians? The U.S. is betting yes. If this model succeeds, expect to see similar changes in Iran, Venezuela, and other sanctioned nations. Crypto could become the first financial system where sanctions are precision tools - not blunt instruments.