Yemenis are turning to DeFi as US sanctions target Houthi group
Yemeni citizens are increasingly adopting decentralized finance (DeFi) protocols to navigate US sanctions against the Houthi group, which is classified as a terrorist organization. Previous challenges, such as poor internet infrastructure and low financial literacy, limited crypto adoption. However, necessity is driving interest in cryptocurrencies, providing financial resilience amid disrupted local banking services due to ongoing conflict. DeFi platforms account for over 63% of Yemen's crypto-related web traffic, while centralized exchanges represent 18%. Peer-to-peer transactions are also utilized for cross-border fund transfers. The lack of crypto legislation in Yemen may change as sanctions increase, potentially leading to higher adoption rates. Following the Biden administration's relisting of the Houthis as a terrorist organization, a Yemen-based exchange saw a 270% volume increase, indicating a trend towards greater cryptocurrency use as traditional financial systems become more restricted.
