OFAC Sanctions and Crypto: What You Need to Know About Compliance and Risk
When you hear OFAC sanctions, U.S. government restrictions that block transactions with individuals, companies, or countries deemed threats to national security. Also known as Office of Foreign Assets Control restrictions, these rules don’t just apply to banks—they directly affect crypto users, exchanges, and DeFi protocols around the world. If a crypto platform is listed under OFAC sanctions, it can’t process transactions with U.S. persons, and any wallet tied to a sanctioned address may be frozen or flagged by exchanges like Coinbase or Kraken. This isn’t theoretical—exchanges like Thodex and Flybit faced collapse partly because they ignored compliance, and now regulators are watching closely.
OFAC sanctions crypto compliance, the practice of verifying users and transactions to avoid violating government restrictions has become non-negotiable for any exchange operating globally. Platforms like ISX in Iceland and CEO-led exchanges in 2025 are winning because they build compliance into their core—not as an afterthought. That’s why Binance and Kraken now verify identities, block flagged IPs, and cut off users in sanctioned regions. Meanwhile, unregulated markets in Nigeria, Bangladesh, and Bolivia still see heavy crypto use, but users there face real risk: if your wallet interacts with a sanctioned address—even unknowingly—your funds could vanish overnight.
DeFi platforms aren’t immune either. Parallel Finance and TombSwap faded not just because of poor code, but because they didn’t account for regulatory pressure. When OFAC adds a token or protocol to its list, liquidity dries up fast. Developers can’t fix it. Exchanges delist it. Users panic. Even something as simple as a token name that sounds like a sanctioned country (like USTREAM or HUSL) can trigger red flags. That’s why the most successful crypto projects today don’t just chase hype—they track cryptocurrency regulation, the evolving legal frameworks that govern how digital assets can be used, traded, and stored in real time.
What you’ll find below isn’t just a list of exchange reviews. It’s a map of what happens when regulation meets crypto. You’ll see how countries like Bolivia and Nigeria shifted from bans to oversight, how users bypass restrictions, and which platforms got shut down because they ignored the rules. Whether you’re trading on Solana, Algorand, or Arbitrum, understanding sanctioned crypto exchanges, platforms that have been officially blocked by OFAC or other regulators for non-compliance could save your portfolio. These aren’t abstract policies—they’re the reason some wallets work and others don’t. Read on to know where the real risks lie—and how to stay clear of them.
- By Eva van den Bergh
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- 4 Dec 2025
OFAC Sanctions and Iranian Crypto Access to Exchanges: How Restrictions Block and Bypass Digital Asset Flows
OFAC sanctions have blocked Iranian access to major crypto exchanges, but users adapt through peer-to-peer trading, decentralized platforms, and privacy coins. A cat-and-mouse game continues as sanctions evolve and evasion tactics grow more sophisticated.