Oopsiewhoopsies, looks like there is no correlation between the use of non-custodial services and sanctioned jurisdictions.
While law makers around the world are lobbying to regulate non-custodial services for their alleged use in terror financing and sanctions evasion, an excerpt of Chainalysis’ new crypto adoption index shows that the jurisdictions ranking highest in “received DeFi transaction volume” are India, the US, and Nigeria.
Yemen, on the other hand, has seen a significant increase in crypto adoption as a whole, but ranks at 21st place in received “DeFi” transaction volume, compared to 15th place for retail centralized services. When adjusted for population size, Yemen ranks even worse in received DeFi transaction volume, coming in on 29th place, and 12th place for retail centralized services.
While Yemen is not subject to full sanctions s.a. Iran or North Korea, the US has sanctioned the Houthis, who control parts of Yemen amid its ongoing civil war. Sending money into Yemen has since become effectively impossible as financial services increasingly derisk Yemeni recipients as a whole. And still: the majority of funds in Yemen are received via centralized services.
Similarly, Venezuela, also subject to extensive US sanctions, ranks at a mere 37th place in received DeFi transaction volume, while ranking in 15th place for volume received via centralized services. When adjusted for population size, Venezuela too falls behind in received DeFi transaction volume, coming in on 52nd place, while claiming third place in retail centralized services volume.
The only outlier where received DeFi tx volume overtook volume on centralized services in a jurisdiction subject to US sanctions is Russia. But, when adjusted for population size, Russia doesn't even make Chainalysis' top 20 list.
Looks like the surveillance hawks may need to find a new narrative to ban everything they can’t control.
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