International Sanctions and Crypto Restrictions in Syria and Cuba in 2025

By July 2025, the U.S. government made two starkly different moves on international sanctions-one lifting decades of restrictions on Syria, the other tightening them on Cuba. These shifts didn’t just change trade rules. They rewrote the rules for cryptocurrency use, cross-border payments, and financial compliance in both countries.

Sanctions on Syria: A Complete Reversal

On July 1, 2025, the U.S. lifted its comprehensive sanctions on Syria. Executive Order 14312 revoked all six previous orders that had blocked business with the Syrian government since 2004. That meant U.S. banks could finally open correspondent accounts with Syrian financial institutions. American companies could legally export financial services, software, and even cloud infrastructure to Syria without special licenses.

The Office of Foreign Assets Control (OFAC) removed the Central Bank of Syria and dozens of other Syrian banks from the Specially Designated Nationals (SDN) List. For the first time in over 20 years, international payment processors could route transactions through Syrian banks without fear of U.S. penalties.

But it wasn’t a full open door. Targeted sanctions stayed in place for key figures: President Ahmed al-Sharaa’s inner circle, members of the Assad family, individuals tied to the captagon drug trade, and those accused of human rights abuses. If you’re doing business in Syria, you still need to screen every counterparty against the remaining SDN list. One wrong match can trigger a $1 million fine-even if you didn’t know the person was still sanctioned.

Crypto in Syria: Legal Gray Zone, Real Access

Syria has no law that says cryptocurrency is legal. It also has no law that says it’s illegal. That’s not a loophole-it’s a vacuum.

Before July 2025, major exchanges like Binance and Kraken blocked Syrian users. Their compliance teams couldn’t risk serving a country under U.S. sanctions, even if the user wasn’t connected to the regime. After the sanctions lifted, those blocks vanished. Syrians could sign up, deposit fiat via local banks, and trade Bitcoin, Ethereum, and stablecoins without restrictions.

But here’s the catch: Syrian banks still don’t offer crypto services. No licensed exchange operates inside Syria. All trading happens through foreign platforms. That means Syrians rely on peer-to-peer (P2P) networks, local payment agents, and third-party gateways to convert crypto to cash. A trader in Damascus might sell Bitcoin to a friend who pays in Syrian pounds via mobile wallet, then use that cash to buy groceries or pay rent.

Financial tech companies like Lightspark have stepped in with solutions. Their Grid Switch system lets institutions send payments to Syria using local real-time payment rails, settling in Bitcoin via the Lightning Network behind the scenes. No crypto touches the end user’s phone-but the transaction still clears faster and cheaper than traditional SWIFT.

The real risk? Banks outside Syria. Even with U.S. sanctions lifted, European and Asian banks still hesitate. They don’t trust Syria’s AML/CFT controls. A payment from Germany to a Syrian supplier might get stuck for weeks while the bank runs extra checks. Some just reject it outright.

Cuba: Tighter Than Ever

While Syria opened up, Cuba shut down.

In June 2025, President Trump signed National Security Presidential Memorandum 5 (NSPM-5), reversing Biden’s 2023 easing of Cuba sanctions. The Cuba Assets Control Regulations (CACR) were reactivated with full force. U.S. persons can no longer travel for tourism. No U.S. companies can invest in Cuban startups. No U.S. banks can process payments for Cuban goods-even if the goods are sold by a third-country company.

The crackdown hit harder than before. In July 2025, Key Holding, LLC-a Delaware logistics firm-paid $608,825 to OFAC after its Colombian subsidiary shipped 36 freight containers to Cuba. The company claimed it didn’t know the final destination. OFAC didn’t care. The CACR applies to all U.S. persons, including foreign subsidiaries. Ignorance isn’t a defense.

Crypto isn’t banned in Cuba-but it’s nearly impossible to use legally. Cuban citizens can hold crypto. But they can’t buy it with Cuban pesos through regulated channels. No Cuban bank offers crypto services. Foreign exchanges block Cuban IPs. The only way to get crypto is through P2P trades with strangers or via third-country intermediaries, often at steep premiums.

The Cuban government has no official stance on crypto. But it doesn’t need one. The U.S. sanctions do the work for them. If you’re a Cuban entrepreneur trying to raise funds from a U.S. investor, you’re blocked. If you want to pay a developer in Ukraine with Bitcoin, your bank in Mexico might freeze your account.

Why the Difference?

The U.S. didn’t lift sanctions on Syria because it trusted the government. It did so because the Assad regime changed tactics. After years of civil war, the regime cracked down on the captagon trade, dissolved the al-Nusrah Front (HTS), and began cooperating with U.S. counterterrorism efforts. The Trump administration called it a “strategic realignment.”

Cuba? Nothing changed. The government still suppresses dissent. It still sends troops to support Russia in Ukraine. It still blocks internet access during protests. The U.S. didn’t see any reason to ease pressure.

It’s not about democracy. It’s about leverage. Syria offered something the U.S. wanted: a partner in counterterrorism. Cuba offered nothing but resistance.

What This Means for Crypto Users

If you’re in Syria: You now have access to global crypto markets. But you’re still on your own. No regulation. No consumer protection. No insurance. If a P2P buyer vanishes with your Bitcoin, you have no recourse.

If you’re in Cuba: Crypto is technically possible, but practically blocked. The only people using it are those with connections outside the country, often at great personal risk. A Cuban doctor trading Bitcoin to pay for medicine is not a crypto pioneer-she’s a survivor.

For businesses: Syria is a high-risk, high-reward opportunity. The market is untapped. The infrastructure is weak. But the legal path is now open-if you do your due diligence. Cuba? Avoid it. The penalties aren’t worth the potential return.

Compliance Is Still King

Even with sanctions lifted, compliance isn’t optional. U.S. financial institutions must still screen all transactions against the remaining SDN list. They must report suspicious activity. They must keep records for five years.

A single mistake can cost millions. In 2025, a New York-based fintech firm paid $2.3 million in fines after it processed a $12,000 crypto transfer to a Syrian business that turned out to be owned by a sanctioned individual. The company said it used an automated screening tool. OFAC said the tool was outdated. The tool hadn’t been updated since June 2024.

The lesson? Don’t rely on software alone. Manual review matters. Sanctions lists change daily. If you’re working with Syria, you need real-time screening, not quarterly updates.

What’s Next?

The U.S. is doubling down on crypto enforcement. In August 2025, OFAC announced a new Crypto Sanctions Compliance Framework. It requires all U.S.-based exchanges to implement geofencing, IP blocking, and wallet tagging for sanctioned jurisdictions-even if the country isn’t under full sanctions.

Syria’s crypto scene will grow. But it won’t be smooth. It’ll be messy, informal, and risky. Cuba’s will stay frozen.

The bigger picture? Sanctions aren’t just about punishment anymore. They’re tools of geopolitical strategy. And crypto? It’s becoming the new battlefield.