Crypto Sanctions: What They Are and Why They Matter

When dealing with crypto sanctions, government‑imposed restrictions that limit the use, transfer, or trade of digital assets. Also known as digital asset sanctions, they form the backbone of cryptocurrency regulations, the legal framework that defines what’s allowed in the crypto space. In short, crypto sanctions tell you which coins, wallets or platforms you can touch without breaking the law. They affect everything from a small DeFi token to a major exchange, and they’re constantly shifting as governments chase new tech.

How Exchange Bans and Geofencing Enforce Crypto Sanctions

One of the most visible ways sanctions hit users is through exchange bans, rules that force platforms to block or restrict services for certain countries or users. Bans often rely on geofencing, technology that detects a user’s IP location and blocks access if it falls inside a restricted zone. This creates a clear semantic link: crypto sanctions require exchange bans, and exchange bans use geofencing to stay compliant. A recent example is Bybit’s VPN detection system that stops US‑based traders from sneaking in. When the system catches a VPN, it drops the connection, reinforcing the sanction’s reach. The triple “crypto sanctions → exchange bans → geofencing” shows how policy, platform, and tech interact.

Even with strict bans, users look for ways around the rules. That’s where non‑custodial wallets, wallets that let you keep private keys and control assets without a third‑party custodian come into play. Because you hold the keys, these wallets aren’t directly tied to a location‑based service, making them harder for regulators to block. In practice, crypto sanctions influence the rise of non‑custodial solutions, while non‑custodial wallets enable users to bypass exchange bans when they’re willing to accept the risk. This relationship—sanctions drive innovation, and new tools reshape compliance—adds another semantic layer to the story.

Understanding crypto sanctions is more than memorizing a list of prohibited countries. It means seeing how regulations shape exchange policies, how geofencing enforces those policies, and how non‑custodial wallets provide a possible escape route. Below you’ll find deep dives into specific bans, step‑by‑step guides on navigating geofencing, and practical tips for using self‑custody wallets safely. Dive in to see how each piece fits together and what you can do next.