Due to US sanctions against the Houthis, Yemeni citizens use the DeFi protocol to provide financial services to themselves

Yemeni citizens are increasingly using the DeFi protocol to manage their finances as a result of the United States designating the Houthis as a terrorist organization and imposing sanctions on them. Blockchain intelligence firm TRM Labs noted in an April 17 report that in the past, war-affected, challenging internet infrastructure in Yemen, and low levels of financial literacy among the population have contributed to relatively low adoption of cryptocurrencies; however, there are indications that interest in and use of cryptocurrencies is growing for necessary rather than speculative purposes. For those who use cryptocurrencies in Yemen, the DeFi protocol is able to bypass disruptions to local financial services, providing them with a degree of financial resilience, especially in the event that ongoing conflict makes banks difficult to access or impossible to operate at all. According to TRM Labs, DeFi platforms account for the majority of cryptocurrency-related web traffic in Yemen, accounting for more than 63%, while global centralized exchanges account for 18%. Currently, there is no legislation on cryptocurrency use in Yemen; TRM Labs speculates that the intensification of sanctions against the Houthis could be the trigger for the rise in cryptocurrency adoption in Yemen.