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How OFAC Sanctions Relief Affects Syrian Crypto Users in 2025

How OFAC Sanctions Relief Affects Syrian Crypto Users in 2025

Michael James 4 October 2025 20 Comments

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For years, anyone trying to trade Bitcoin, Ethereum, or any digital asset from Syria faced a wall of U.S. restrictions. In 2025 that wall cracked open, and the rules that once forced Syrian traders into offshore workarounds have been rewritten. This article walks through what changed, how the new framework works, and what every Syrian crypto user and platform should watch out for.

Key Takeaways

Executive Order 14312 (June302025) revoked six decades‑old sanctions orders, effectively ending the comprehensive Syrian Sanctions Regulations.
General License 25, issued May282025, now offers blanket authorization for most crypto transactions that were previously prohibited.
Targeted sanctions remain on over 100 regime‑linked individuals and entities, so robust screening is still a must.
The new PAARSS program (formerly SySR) reshapes how compliance teams classify Syrian crypto activity.
Export‑control relief (BIS License Exception SPP) paves the way for mining hardware and blockchain tech to enter Syria.

Background: From Full Blockade to Targeted Relief

Since 2004 the United States imposed a sweeping set of prohibitions on financial dealings with Syria. OFAC the Office of Foreign Assets Control, tasked with enforcing U.S. sanctions, governed those rules through the Syrian Sanctions Regulations (SySR). The effect on digital assets was crystal clear: any transaction that involved a U.S. person, exchange, or wallet provider and a Syrian counterpart was illegal, with penalties up to $20million or twice the transaction value.

That blanket approach forced Syrian crypto enthusiasts to rely on peer‑to‑peer swaps, offshore mixers, or peer‑run exchanges that operated in legal gray zones. The barrier wasn’t just financial-it also blocked access to hardware, development tools, and legitimate KYC services.

Timeline of the 2025 Sanctions Relief

May232025 - General License 25 issued, granting initial permission for certain crypto transactions.
June302025 - President signs Executive Order 14312, revoking six prior executive orders (E.O.13338, 13399, 13460, 13572, 13573, 13582).
July12025 - The national emergency underlying those orders terminates; the sanctions framework officially ends.
August262025 - OFAC publishes a final rule removing SySR from the CFR, completing the regulatory cleanup.
September22025 - BIS implements License Exception SPP, allowing export of all EAR99 items, including mining rigs.
September242025 - OFAC rebrands the program to PAARSS Promoting Accountability for Assad and Regional Stabilization Sanctions Regulations, signaling a shift to targeted accountability.

Each step reduced uncertainty, but also introduced a new compliance puzzle for exchanges and users alike.

Young Syrian trader works at laptop with exchange screen, mining rig crates, and floating compliance checklist.

What Changed for Syrian crypto users

Under the old regime, any interaction with a U.S.‑based service was a direct violation. After the reforms, the landscape looks like this:

Legal pathway: General License 25 authorizes standard buy‑sell‑trade activity on U.S. exchanges, provided the user is not on the remaining SDN list.
Delisting impact: OFAC removed 518 individuals and entities from the SDN list, instantly opening their wallets to global platforms.
Hardware access: BIS’s License Exception SPP makes it legal to import mining equipment without a specific license, encouraging local mining operations.
Financial services: FinCEN’s June42025 guidance encourages a risk‑based approach, meaning U.S. banks can now process crypto‑related payments for Syrian customers after appropriate screening.

In short, Syrian traders can now sign up for Coinbase, Binance US, or Kraken, complete KYC, and move funds without fearing an automatic freeze-provided they pass the targeted sanctions screens.

Compliance Challenges for Crypto Platforms

Even with the broad relief, platforms cannot go "set‑and‑forget". The targeted sanctions list still includes senior regime officials, human‑rights violators, Captagon traffickers, and links to ISIS/Al‑Qa’ida. This creates two main compliance hurdles:

Screening precision: Platforms must integrate up‑to‑date OFAC SDN data and apply name‑matching algorithms that can differentiate a common Syrian name from a sanctioned individual. False positives can block legitimate users; false negatives can trigger hefty penalties.
Transaction monitoring: FinCEN’s risk‑based guidance calls for heightened scrutiny of large or unusual crypto flows originating from Syria, especially if they involve high‑risk counterparties.

Smaller exchanges often lack the resources for sophisticated screening software. Many are now turning to third‑party compliance providers that offer real‑time OFAC checks, automated SAR (Suspicious Activity Report) generation, and built‑in KYC modules tuned for Syrian ID documents.

Opportunities and Risks in the New Environment

With the legal door opened, a wave of entrepreneurial activity is expected:

Pre‑2025 vs Post‑2025 Crypto Landscape for Syria
Aspect	Before July2025	After August2025
Legal status of crypto transactions with U.S. entities	Prohibited - risk of civil/criminal penalties	Authorized under General License25 (except for listed individuals)
Access to mining hardware	License required, often denied	Allowed under BIS License ExceptionSPP (EAR99)
Banking for crypto‑related payments	Blocked by U.S. banks	FinCEN risk‑based approach permits processing after screening
SDN exposure	Over 600 Syrian entities blocked	518 removed, 100+ still sanctioned

These changes also bring new risks. The influx of capital could attract fraudsters seeking to exploit less‑experienced users. Moreover, the lingering targeted sanctions mean that any accidental transaction with a prohibited individual can still result in a $20million civil fine.

Three Syrian friends on a rooftop at sunset hold phones showing crypto logos, hopeful skyline behind.

Future Outlook: What’s Next for Syrian Crypto Regulation?

OFAC has signaled that PAARSS will receive further interpretive guidance. Potential developments include:

Additional general licenses covering decentralized finance (DeFi) protocols.
Clear definitions of “beneficial ownership” for Syrian entities to simplify KYC.
Possible expansion of BIS exemptions to cover software‑as‑a‑service (SaaS) blockchain platforms.

Stakeholders should keep an eye on the Federal Register and OFAC’s monthly updates. For users, staying compliant means regularly refreshing wallet addresses, confirming that their exchange’s screening tools are up‑to‑date, and avoiding any counterparties linked to the remaining SDN list.

Quick Compliance Checklist for Platforms Serving Syrian Users

Integrate the latest OFAC SDN data feed (update at least daily).
Apply General License25 logic: allow standard crypto transactions unless a match is found on the targeted list.
Implement FinCEN‑aligned risk scoring for large transfers (>$10,000 or equivalent).
Document all screening decisions and retain records for the statutory 5‑year period.
Train AML staff on the nuances of PAARSS and the new BIS License Exception SPP.

Frequently Asked Questions

Can I now buy Bitcoin on a U.S. exchange as a Syrian resident?

Yes, provided you are not on the current OFAC SDN list and the exchange has applied General License25. You will need to complete the platform’s KYC process, which now accepts Syrian national IDs and passports.

Do the sanctions relief measures affect non‑U.S. crypto platforms?

Directly, no. The OFAC rules apply to U.S. persons and entities. However, many non‑U.S. platforms choose to comply with U.S. standards because they rely on U.S. banking or have U.S. investors, so they often adopt the same screening practices.

What happens if I accidentally transact with a sanctioned individual?

The transaction could be frozen, and you may face civil penalties up to $20million or twice the transaction value. Promptly reporting the incident to OFAC and cooperating with any investigation can mitigate the penalty.

Is mining equipment now easy to import into Syria?

Yes. Under BIS License ExceptionSPP, EAR99 items-including most ASIC miners-can be shipped without a specific license, as long as the end‑use is not prohibited.

Will there be more general licenses for DeFi in the future?

OFAC has hinted at expanding PAARSS guidance to cover DeFi protocols, but no formal license has been issued yet. Keep an eye on the Federal Register for updates.

Next Steps for Syrian Crypto Enthusiasts

1. Verify your personal status against the latest OFAC SDN list (available on the OFAC website).
2. Choose a U.S. exchange that publicly states compliance with General License25.
3. Complete KYC using a government‑issued ID and a proof‑of‑address document.
4. Start with small test transactions to confirm that funds move without a freeze.
5. Stay subscribed to OFAC and BIS newsletters so you get notice of any new restrictions.

By following these steps and keeping compliance front‑and‑center, Syrian crypto users can finally tap into the global digital‑asset market without the legal grayness that defined the past decade.