OFAC sanctions Syria – what you need to know

When dealing with OFAC sanctions, U.S. Treasury restrictions that limit financial activity with designated countries and individuals, Syrian crypto users face a tricky landscape. The recent General License 25, an OFAC authorization that eases some restrictions for humanitarian and specific financial services offers a narrow window of compliance, while the PAARSS, the Palestinian Authority Authorized Remittance Services Scheme that provides a parallel pathway for cross‑border transfers creates an additional option for legitimate flows.

Understanding OFAC sanctions is key for anyone handling crypto in Syria. These rules are a type of economic sanction that blocks U.S. persons from dealing with listed entities. In practice, that means exchanges, wallets, and traders must block Syrian accounts unless they qualify under a specific license. The 2025 update to General License 25 specifically mentions "certain cryptocurrency services" – a direct response to the growing demand for digital money in the region.

How the relief works and what it means for users

General License 25 encompasses three main elements: (1) it permits limited cryptocurrency transfers that support humanitarian aid; (2) it allows licensed crypto‑exchange operators to service Syrian customers after a thorough vetting process; and (3) it requires detailed reporting to OFAC for each transaction. This license effectively relaxes the blanket prohibition, but only for activities that meet the defined criteria. In other words, the sanction framework still exists, but there’s a clear, legal pathway for compliance.

PAARSS, on the other hand, is not an OFAC license but a regional scheme that aligns with U.S. rules. It enables licensed remittance providers to move funds between the Palestinian territories and Syria without triggering sanctions, as long as they follow anti‑money‑laundering (AML) standards. For crypto users, PAARSS can act as a bridge: you convert crypto to a fiat gateway that participates in PAARSS, then move the money into Syria under the scheme’s protections.

The relationship between these entities can be expressed as simple triples: OFAC sanctions restrict Syrian crypto users; General License 25 relaxes those restrictions for qualified services; PAARSS enables lawful remittance under the same sanction framework. Together they shape the compliance landscape that every exchange, wallet, or trader must navigate.

What does this mean for everyday users? First, you need to verify that any platform you use holds a valid General License 25 endorsement. Second, expect extra KYC steps – OFAC now asks for source‑of‑funds documentation even for small crypto purchases. Third, keep an eye on reporting requirements: some platforms publish monthly transparency reports showing how many Syrian transactions they processed under the license.

From a developer’s perspective, building a compliant solution involves three technical steps. One, integrate an OFAC screening API that matches user data against the latest sanction list. Two, embed a licensing check that flags any transaction involving Syrian IP addresses unless the counterparty is covered by General License 25. Three, generate audit‑ready logs that capture transaction hashes, timestamps, and the reason each transfer qualifies under the license. Following these steps satisfies both the letter and spirit of the regulation.

Risk management is also crucial. Even with a license, a single slip – like processing a transaction for a sanctioned individual – can trigger hefty fines and reputational damage. Therefore, many firms adopt a “dual‑layer” approach: automated screening plus a manual review for any borderline case. This extra human check often catches errors that algorithms miss, especially when dealing with emerging crypto projects that lack a clear legal profile.

Looking ahead, the OFAC community signals that more targeted licenses could appear, especially as stablecoins gain traction in Syria. If that happens, the compliance burden might shift from heavy reporting to more streamlined token‑specific guidelines. Until then, staying updated on OFAC bulletins and regularly reviewing the General License 25 text will keep you on the right side of the law.

Below you’ll find a curated set of articles that dive deeper into each of these points – from detailed licensing checklists to real‑world case studies of Syrian users navigating the new rules. Use them as a practical toolbox for your own crypto activities or for building compliant services that serve the Syrian market.