For more than two decades, Syrian citizens were effectively locked out of the global financial system. If you tried to send money abroad or access international banking services, you hit a wall of U.S. sanctions that made almost every transaction illegal for American entities to touch. Cryptocurrency was supposed to be the escape hatch-a borderless digital asset class that didn't care about your passport. But even here, the shadow of OFAC is the Office of Foreign Assets Control, a division of the U.S. Department of the Treasury responsible for administering and enforcing economic and trade sanctions loomed large. Exchanges feared penalties, so they blocked Syrian IP addresses and rejected any KYC documents from Damascus.
That reality shifted dramatically in mid-2025. The comprehensive sanctions regime that had governed Syria since 2004 was dismantled, replaced by a targeted approach that opens the door for ordinary Syrians to use crypto again. But it’s not a free-for-all. New rules, new names, and lingering restrictions mean the landscape is complex. Here is what you need to know about how these changes impact Syrian crypto users today.
The End of Comprehensive Sanctions
To understand the change, you have to look at what was removed. For years, the Syrian Sanctions Regulations (SySR) are a set of U.S. federal regulations that prohibited most financial transactions between U.S. persons and Syrian entities acted as a blanket ban. Under these rules, any interaction with a Syrian national could trigger severe penalties, including fines up to $20 million or twice the value of the transaction. This fear caused major cryptocurrency exchanges like Binance, Coinbase, and Kraken to de-risk entirely, cutting off access for all users from Syria.
On June 30, 2025, President Trump issued Executive Order 14312, titled "Providing for the Revocation of Syria Sanctions." This order revoked six foundational executive orders dating back to 2004. By July 1, 2025, the national emergency underlying those sanctions was terminated. Then, on August 26, 2025, OFAC published a final rule removing the SySR from the Code of Federal Regulations entirely.
What does this mean for you? It means the automatic, blanket prohibition is gone. A Syrian citizen living in Aleppo or Damascus is no longer automatically barred from opening an account on a U.S.-compliant exchange simply because of their nationality. The legal barrier that forced users into underground channels or offshore workarounds has been lifted.
New Rules: Enter PAARSS
If you think the removal of sanctions means zero regulation, you’d be wrong. The U.S. government didn’t abandon oversight; it refined it. On September 24, 2025, OFAC rebranded the remaining program. The old "Syrian Sanctions Regulations" are now known as the Promoting Accountability for Assad and Regional Stabilization Sanctions Regulations (PAARSS) are the updated U.S. sanctions framework targeting specific individuals and entities linked to the Assad regime, human rights abuses, and terrorism.
This name change signals a shift from broad economic isolation to precision targeting. The goal is accountability, not total exclusion. Under PAARSS, sanctions remain in place for:
- Over 100 individuals and entities affiliated with the Bashar al-Assad regime.
- Human rights abusers.
- Captagon traffickers.
- Persons linked to Syria's past proliferation activities.
- Affiliates of ISIS and Al-Qa'ida.
- Iran and its proxies operating in the region.
For the average crypto user who is just trying to save value or send remittances, this is good news. You are likely not on any of these lists. However, if you are associated with any of these groups, your assets remain frozen, and interacting with you is still illegal for U.S. persons.
Who Got Delisted?
One of the most significant practical changes was the mass delisting action taken by OFAC. The agency removed 518 individuals and entities from the List of Specially Designated Nationals and Blocked Persons (SDN List) who had been sanctioned under the old SySR.
The SDN List is the primary tool used by cryptocurrency platforms to screen users. If your name appeared there, you were banned. With 518 names removed, a substantial number of Syrian business owners, professionals, and private citizens are now clear to transact. This delisting eliminates the legal barriers that previously prevented them from accessing decentralized finance protocols or centralized exchanges that maintain strict U.S. compliance.
| Feature | Pre-July 2025 (Old SySR) | Post-August 2025 (PAARSS) |
|---|---|---|
| Scope | Comprehensive: All Syrian nationals/entities | Targeted: Specific bad actors only |
| Crypto Access | Blocked by major exchanges due to risk | Permitted for non-sanctioned individuals |
| Legal Basis | National Emergency (since 2004) | Accountability & Stabilization Focus |
| Penalties | Up to $20M fine or criminal prosecution | Same penalties for violating targeted bans |
| General Licenses | Limited humanitarian exceptions | GL 24 & GL 25 authorize broader conduct |
How General Licenses Enable Transactions
You might wonder how exactly a Syrian user can now interact with a U.S.-based service provider without breaking the law. The answer lies in General Licenses. Specifically, OFAC General License 25 is a regulatory authorization issued on May 28, 2025, providing blanket authorization for transactions otherwise prohibited by the Syrian Sanctions Regulations plays a crucial role.
Issued on May 28, 2025, General License 25 provides blanket authorization for transactions that would otherwise be prohibited. This creates a legal pathway for Syrian crypto users to engage with U.S.-based cryptocurrency exchanges, wallet providers, and other digital asset services. Alongside General License 24, these licenses ensure that even if other sanctions programs (like Global Terrorism Sanctions) technically apply, the specific relief for Syria overrides them for eligible parties.
Additionally, the Bureau of Industry and Security (BIS) introduced the License Exception Syria Peace and Prosperity (SPP) on August 28, 2025. This allows the export of EAR99 items-essentially standard commercial goods-to Syria. While this sounds technical, it matters for crypto because it facilitates the transfer of mining equipment, blockchain infrastructure hardware, and related technology. If you’re looking to build a local mining rig or set up a node, importing the necessary hardware is now much easier.
Challenges for Crypto Platforms
While the legal doors are open, the operational reality is tricky. Cryptocurrency platforms operate on automated screening systems. They don’t want to accidentally process a transaction for an Assad regime affiliate or a Captagon trafficker. The penalty for missing one bad actor is catastrophic for their business license.
This creates a "over-compliance" risk. Many platforms may initially hesitate to onboard Syrian users because their internal algorithms aren’t yet tuned to distinguish between the 518 delisted individuals and the remaining sanctioned entities. Smaller exchanges, lacking sophisticated risk assessment tools, might continue to block Syrian IPs out of caution, even though it’s legally permissible to serve non-sanctioned Syrians.
However, FinCEN guidance from June 4, 2025, encourages U.S. institutions to take a risk-based approach rather than a blanket ban. This should pressure exchanges to update their Know Your Customer (KYC) protocols. Instead of rejecting all Syrian passports, they will need to cross-reference applicants against the updated SDN List and the specific criteria of PAARSS.
What Should Syrian Crypto Users Do?
If you are a Syrian citizen interested in using cryptocurrency, here are the practical steps to navigate this new environment:
- Check the SDN List: Ensure you or your business are not on the current List of Specially Designated Nationals. The delisting of 518 entities helps, but verify your status.
- Avoid Sanctioned Entities: Do not transact with anyone or any entity listed under PAARSS. This includes known affiliates of the Assad regime, Iran-linked groups, or terrorist organizations.
- Choose Compliant Exchanges: Look for platforms that explicitly state they accept Syrian residents. Major global exchanges may still lag in updating their UI, but many regional or decentralized options are faster to adapt.
- Keep Records: Maintain clear records of your transactions. In a targeted sanctions regime, being able to prove your legitimacy and lack of connection to bad actors is your best defense.
- Monitor Regulatory Updates: OFAC has indicated plans to supplement 31 C.F.R. Part 569 with more comprehensive regulations under PAARSS. Keep an eye on new general licenses or interpretive guidance that could further ease restrictions.
The Bigger Picture
The shift from comprehensive sanctions to the PAARSS framework positions Syria as a test case for modern sanctions policy in the digital age. It recognizes that broad-based economic isolation hurts civilians and pushes them toward informal, unregulated economies. By allowing financial inclusion for ordinary people while targeting specific bad actors, the U.S. aims to promote stability and accountability.
For the crypto community, this is a validation of the technology’s potential to bridge gaps in traditional finance. As long as you stay clear of the designated bad actors, the blockchain doesn’t discriminate. The barriers were political, not technological-and those political barriers have just lowered significantly.
Can I use USDT or Bitcoin as a Syrian citizen now?
Yes, provided you are not on the SDN List and do not have ties to sanctioned entities like the Assad regime or terrorist groups. The removal of the comprehensive Syrian Sanctions Regulations (SySR) means that holding or trading cryptocurrencies like Bitcoin or USDT is no longer automatically prohibited for all Syrians. However, you must use exchanges that comply with the new PAARSS regulations and perform proper screening.
What is PAARSS and why does it matter?
PAARSS stands for Promoting Accountability for Assad and Regional Stabilization Sanctions Regulations. It replaced the old comprehensive sanctions regime in September 2025. It matters because it shifts the focus from banning all Syrian financial activity to targeting only specific individuals and entities involved in human rights abuses, terrorism, or regime corruption. This allows ordinary citizens to access financial services, including crypto.
Are all Syrian banks allowed to connect to crypto exchanges?
Not necessarily. While the broad sanctions are lifted, specific banks or financial institutions affiliated with sanctioned individuals or the regime may still be blocked. You should check if your bank appears on the SDN List. Additionally, some international payment processors may still impose their own internal restrictions despite the regulatory changes.
Will Binance or Coinbase accept Syrian users immediately?
It varies. While legally permitted under General License 25, major exchanges often move slowly due to internal compliance risks. Some may continue to block Syrian IP addresses or reject Syrian ID documents until they update their screening algorithms. You may find better immediate access through decentralized exchanges (DEXs) or regional platforms that have adapted faster to the new PAARSS framework.
Can I import crypto mining equipment into Syria?
Yes, thanks to the BIS License Exception Syria Peace and Prosperity (SPP). Effective September 2, 2025, this exception authorizes the export of EAR99 items to Syria. This includes standard commercial goods like cryptocurrency mining rigs and blockchain hardware, which previously required difficult-to-obtain specific licenses.
What happens if I accidentally transact with a sanctioned person?
Accidental violations can still carry penalties, but OFAC considers voluntary self-disclosure and mitigation efforts. If you believe you’ve engaged in a prohibited transaction, you should freeze the funds and consult with a legal expert specializing in sanctions law. The key is to demonstrate that you took reasonable steps to screen counterparties and did not intend to violate PAARSS.
