According to TRM Labs, over 63% of Yemen’s crypto-related web traffic is directed at DeFi platforms — far outpacing centralized exchanges, which account for only 18%.

With Banks Inaccessible, DeFi Fills the Gap

The ongoing civil war in Yemen, compounded by limited financial literacy and deteriorating infrastructure, has made access to banking services almost impossible for many citizens.

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TRM Labs reports:

“For those using crypto in Yemen, DeFi provides a degree of financial resilience when local banks are inaccessible or non-operational.”

DeFi Dominates Crypto Activity

• 63% of crypto-related traffic in Yemen is DeFi-based
• 18% comes from centralized global exchanges

Some also turn to peer-to-peer crypto transactions to move money across borders or facilitate remittances.

Sanctions Fueling Crypto Growth

The US Treasury’s renewed sanctions on the Houthis — including a January 2024 reclassification as Specially Designated Global Terrorists — appear to be a key driver in crypto adoption.

Following this action, a Yemen-based crypto exchange saw a 270% surge in transaction volume. Later, another 223% spike occurred after additional political developments.

TRM Labs notes:

“As traditional financial channels are blocked, cryptocurrencies offer a decentralized alternative — harder to trace and control.”

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The post Yemenis Turn to DeFi as US Sanctions Limit Access to Banks appeared first on Coin Engineer.