Sanctions on countries like Iran, Russia, and North Korea have driven increased cryptocurrency use for cross-border payments to bypass restrictions. These nations leverage crypto’s decentralized nature, avoiding traditional banking systems like SWIFT, which are subject to sanctions. For instance, Iran legalized crypto for imports, while Russia approved it for international trade in 2024 to counter Western sanctions. Cryptocurrencies enable faster, cheaper transactions, but their transparency poses risks, as blockchain transactions can be traced. Sanctions also spur central bank digital currency (CBDC) development, like Russia’s digital ruble, to facilitate trade. However, regulatory scrutiny and enforcement, such as U.S. Treasury actions, limit evasion effectiveness, pushing sanctioned entities toward non-custodial wallets and alternative systems.