Yemen's economic crisis, banking restrictions on money transfers, and growing digital financial literacy have fuelled the adoption of cryptocurrencies, according to a report published by The New Arab.
The country's reliance on remittances is a key factor. Yemen received $3.8 billion in remittances in 2024, according to the World Bank, making it one of the most remittance-dependent economies in the world.
With banking restrictions making traditional transfers costly and slow, some are looking at digital assets as a potential alternative.
Digital currencies like Bitcoin and Ethereum have emerged as a perceived safe haven, despite the legal and technical challenges surrounding their use.
Mustafa Nasr, head of the Studies and Economic Media Centre, believes American sanctions on groups and entities inside Yemen have played an important role in pushing Yemenis toward adopting cryptocurrency.
"Some groups use digital currencies to bypass restrictions and sanctions, especially regarding financial transfers. These digital assets make a suitable alternative to banking transfer systems, which also face repeated restrictions," he said.
Despite the rising interest, experts warn that Yemen's lack of regulatory oversight makes the crypto space ripe for fraud and financial loss.
Market volatility remains a major concern; cryptocurrencies can experience massive value swings in hours. Additionally, recovering lost or stolen assets is nearly impossible without legal protections.
This trend is not unique to Yemen. A similar surge in cryptocurrency adoption occurred in Lebanon after 2020 amid its financial crisis, and even global figures, including President Donald Trump, have shown interest in digital currencies.
Despite widespread adoption, Yemen's cryptocurrency market has not been free of serious risks, particularly those posed by fraudulent companies.
Duaa Ahmed, 40, worked as a representative for a cryptocurrency company. She had shared an unlikely experience.
"I added hundreds of investors to a company called Doge Coin in 2019," she told TNA. "But in late 2025, all the investors' email accounts were locked. One of the company's external representatives told me that investors had to pay additional amounts to reopen their emails. Everyone refused. I was accused of fraud because this company was impersonating the globally known Dogecoin. The name was a trick to deceive investors."
Economic experts agree that unreliable platforms have proliferated. Numerous Yemenis have fallen victim to fraudulent or unregulated platforms, especially given the absence of a clear legal framework to regulate cryptocurrency trading in the country.
A local banking source in Aden, speaking on condition of anonymity, said that digital banking sites had been blocked by the local internet provider in Sana'a, creating obstacles for both international and domestic transfers.
Despite rising indicators of interest in encrypted digital currencies in Yemen, economic expert Nasr emphasizes that Yemen's cryptocurrency market faces significant challenges.
"The most prominent is the absence of regulatory legislation," he said. "Yemen has no clear laws to protect investors, which increases the likelihood of fraud. It also lacks a market for bonds and stocks. Encrypted currencies experience major changes in value within a few hours."