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US Citizens Turn to DeFi as Sanctions Target Houthi Group in Yemen

Yemenis are increasingly adopting decentralized finance (DeFi) protocols to navigate the challenges posed by US sanctions against the Houthi group.

Historically, limited internet infrastructure and low financial literacy hindered crypto usage in Yemen, but necessity has spurred growing interest in these digital solutions.

According to TRM Labs, DeFi platforms now generate over 63% of Yemen's crypto-related web traffic, contrasting with the 18% attributed to global centralized exchanges.

Many locals are utilizing peer-to-peer transactions to facilitate cross-border remittances and fund transfers.

These activities highlight that decentralized infrastructure can provide essential alternatives to traditional payment systems in the region.

Currently, there are no specific laws governing cryptocurrency use in Yemen, yet escalating sanctions could drive higher crypto adoption.

Following significant US governmental actions, such as the reclassification of the Houthis as a terrorist organization, local cryptocurrency exchanges have experienced explosive growth in trading volume.

Such exponential increases in activity underscore the potential for crypto to play a pivotal role in a restricted financial environment.

As international interventions intensify, the use of decentralized currencies in Yemen is expected to expand in both its scale and sophistication.

In a landscape where traditional financial avenues are increasingly inaccessible, DeFi represents a viable alternative for Yemenis seeking financial autonomy.