Yemeni citizens are increasingly adopting decentralized finance (DeFi) platforms due to U.S. sanctions targeting the Houthi group, classified as a terrorist organization. According to blockchain intelligence firm TRM Labs, DeFi platforms account for over 63% of Yemen's cryptocurrency web traffic, in contrast to 18% for global centralized exchanges. The ongoing civil war and sanctions have complicated access to traditional banking, prompting citizens to seek alternatives through cryptocurrencies. DeFi provides a way for individuals to bypass disruptions in local financial services, offering a needed resilience amid the conflict. Following the U.S. designation of the Houthis as a Specially Designated Global Terrorist in January 2024, a Yemen-based cryptocurrency exchange experienced a significant volume increase. TRM Labs suggests that further sanctions could catalyze a surge in crypto adoption, as traditional financial avenues become limited, making decentralized currencies a more appealing option for those unable to rely on the local banking system.

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