Cryptocurrency Sanctions: What They Are, Who Gets Hit, and How It Changes Crypto

When the U.S. government slaps a cryptocurrency sanctions, official restrictions placed on crypto projects, wallets, or services for violating financial laws. Also known as crypto compliance actions, these moves aren’t just warnings—they freeze assets, block access, and force exchanges to cut ties. It’s not about stopping innovation. It’s about control. And it’s changed the crypto landscape forever.

One of the biggest targets was Tornado Cash, a privacy-focused Ethereum mixer that anonymized transactions by pooling funds from multiple users. Also known as crypto mixer, it was sanctioned by the OFAC sanctions, U.S. Treasury’s Office of Foreign Assets Control, which enforces economic and trade sanctions. Also known as financial sanctions, it was the first time a decentralized smart contract got blacklisted. Even though a court later lifted the sanctions on the tool itself, the developers are still being prosecuted. That’s the new reality: code isn’t immune to law.

That same logic spilled over to privacy coins, cryptocurrencies designed to hide transaction details like sender, receiver, and amount. Also known as anonymous coins, coins like Monero and Zcash are being quietly removed from major exchanges—not because they’re illegal, but because they make compliance hard. Exchanges don’t want to risk fines. So they drop them. That’s why you won’t find Monero on Coinbase or Binance US. And if you’re holding one, you’re stuck with limited ways to trade or cash out.

Cryptocurrency sanctions aren’t random. They follow a pattern: go after tools that obscure ownership, then target platforms that enable them. That’s why exchanges like CashTelex—no reviews, no license, no transparency—get flagged before they even launch. And why projects like APENFT or BSC AMP get drowned in fake airdrop rumors: scammers exploit confusion around regulation to trick users into giving up keys or paying fees for non-existent tokens.

The result? Crypto isn’t just decentralized anymore. It’s fragmented. Some chains stay open. Others are walled off. Some wallets work. Others are frozen. And the people caught in the middle? Regular users who just wanted to trade, earn, or protect their money. You don’t need to be a criminal to get caught in a sanction. You just need to use the wrong tool.

What you’ll find below isn’t a list of banned coins or shady platforms. It’s a collection of real stories—how Tornado Cash’s fall changed privacy, why Algeria banned crypto entirely, how German exchanges now need licenses, and why some stablecoins like XUSD are only legal in certain countries. These aren’t abstract rules. They’re live events that affect your wallet, your choices, and your freedom to move value.