FATF Blacklist: Why Iran, North Korea, and Myanmar Are Banned from Global Crypto Markets

On any given day, billions of dollars flow through cryptocurrency networks - some legally, some not. But when the money comes from countries under international financial siege, it triggers alarms across banks, exchanges, and regulators. As of mid-2025, only three nations sit on the Financial Action Task Force’s (FATF) highest-risk blacklist: Iran, North Korea, and Myanmar. These aren’t just names on a list. They’re active hubs for crypto-enabled money laundering, sanctions evasion, and cybertheft that’s reshaping global finance.

What the FATF Blacklist Really Means

The FATF isn’t a police force. It doesn’t arrest anyone. But its word carries weight. When the FATF says a country is a high-risk jurisdiction, it tells every bank, exchange, and payment processor in the world: Proceed with extreme caution - or don’t proceed at all. Countries on this list have failed to meet basic standards for stopping money laundering and terrorist financing. For Iran and North Korea, the FATF has gone further: it’s asking member countries to apply countermeasures - essentially, cutting them off from the global financial system. Myanmar hasn’t reached that level yet, but regulators are watching closely.

What does this look like in practice? If you’re a crypto exchange in Germany, Japan, or Canada, you’re legally required to block transactions to or from wallets linked to these countries. You must flag any transfer that even smells like it’s coming from there. Many exchanges go further - they ban all users from these regions outright. Why? Because the cost of getting it wrong - fines, reputational damage, even criminal charges - is too high.

North Korea: The World’s Most Active Crypto Thief

North Korea doesn’t just use crypto. It weaponizes it.

According to Chainalysis, North Korean state-backed hackers stole over $1.5 billion from cryptocurrency platforms in 2024 alone. That’s more than the GDP of some small nations. Their favorite targets? Exchanges, DeFi protocols, and wallet services with weak security. In February 2025, they pulled off the biggest heist in crypto history: $1.5 billion from ByBit. The funds? Traced through mixers, converted into privacy coins, and laundered across dozens of chains. The U.S. Treasury called it “an act of economic warfare.”

It’s not random crime. It’s state policy. North Korea’s Lazarus Group operates like a military unit - with budgets, training, and targets. They fund missile programs, nuclear research, and elite military units through crypto theft. And they’re getting smarter. They now use blockchain analysis tools themselves to find vulnerabilities in exchanges. They exploit zero-day bugs in wallet software. They bribe insiders. They fake identities to register on platforms in other countries.

There’s no way to ignore this. The U.S. Treasury’s OFAC has designated over 200 crypto addresses linked to North Korea since 2020. FinCEN has issued multiple alerts. Even China has tightened controls on cross-border crypto flows to prevent North Korean funds from slipping through.

Iran: Crypto as a Survival Tool - and a Sanctions Evasion Scheme

Iran’s situation is more complicated. The people aren’t stealing crypto. They’re using it to survive.

After years of U.S. and EU sanctions, Iran’s currency, the rial, lost over 80% of its value since 2018. Inflation hit 50% in 2024. Banks are closed to the world. People can’t pay for medicine, food, or internet services. So they turned to Bitcoin and stablecoins. Iranian exchanges like Bitget and LocalBitcoins saw transaction volumes jump 300% in 2024. Wallets filled with USDT became the new bank accounts.

But here’s the catch: while ordinary Iranians use crypto for food and medicine, the regime uses it to bypass sanctions. The Islamic Revolutionary Guard Corps (IRGC) runs crypto mining farms powered by subsidized electricity. They sell the coins on offshore exchanges. They use peer-to-peer platforms to trade for goods - from electronics to weapons components. In 2024, Iran accounted for nearly $6 billion in illicit crypto inflows - second only to North Korea.

The FATF doesn’t blame the people. It blames the system. Iran’s anti-money laundering laws are paper thin. Its regulators don’t require exchanges to verify users. There’s no reporting of suspicious transactions. That’s why the FATF keeps Iran on the blacklist - not because people are using Bitcoin, but because the state lets criminals and militants use it too.

Myanmar: A Country in Chaos, a Crypto Wild West

Myanmar’s story is one of collapse. After the 2021 military coup, the country’s banking system froze. International aid dried up. The economy shrank by 18% in 2023. With no access to banks, people turned to crypto. Mobile wallets, Telegram-based exchanges, and crypto-based remittances became lifelines.

But the junta didn’t just sit back. It saw an opportunity. Military-linked groups now run crypto mining operations in remote regions. They use stolen electricity to mine Bitcoin and sell it overseas. They use crypto to pay mercenaries and buy weapons. In 2024, FinCEN flagged over 40 crypto addresses tied to Myanmar-based criminal networks. The FATF doesn’t yet call for full countermeasures - but it demands enhanced due diligence. That means any bank or exchange dealing with Myanmar must now prove every transaction is legitimate. Most just say no.

The result? A crypto black market thrives - but only for those with connections. Ordinary citizens can’t access international exchanges. They rely on unregulated peer-to-peer traders, who often disappear with their money. It’s survival - but it’s dangerous.

Why This Matters for Everyone Else

You might think: “I’m not in Iran, North Korea, or Myanmar. Why should I care?”

Because these countries are poisoning the global crypto system.

When criminals use crypto to launder billions, regulators respond by tightening rules everywhere. Exchanges now require ID verification for every user. Withdrawals take days. You can’t send crypto to a wallet without a compliance check. Some platforms ban entire countries just to stay safe. Even if you’re honest, you’re caught in the net.

And it’s getting worse. In 2024, 75% of countries failed to meet FATF’s basic crypto rules. Many still don’t require exchanges to collect user data. Some still allow anonymous wallets. That creates loopholes - and criminals are exploiting them. Mixing services, privacy coins like Monero, and cross-chain bridges are now the go-to tools for laundering money from sanctioned states.

When a hacker steals $1 billion from a U.S. exchange, and the money flows through a mixer in a country with no rules, the whole system loses trust. Investors pull out. Regulators crack down harder. Innovation slows. The price of compliance rises. And the people who suffer most? The ones who just want to use crypto for good.

The Bigger Picture: Crypto as a Double-Edged Sword

Bitcoin was meant to be free. Decentralized. Censorship-resistant. That’s why it’s so powerful in places like Iran and Myanmar - where governments control banks and silence dissent.

But the same features that protect civilians also protect criminals. No KYC? No oversight? No borders? That’s a recipe for abuse. The FATF doesn’t want to ban crypto. It wants to clean it up. It wants exchanges to know who their customers are. It wants to trace dirty money. It wants to stop state-sponsored theft.

The challenge? Balancing freedom with safety. In North Korea, crypto is a weapon. In Iran, it’s a lifeline. In Myanmar, it’s a last resort. The world can’t ignore any of it. But it can’t let criminals hide behind humanitarian need either.

What’s Next? More Rules, More Pressure

The FATF updated its list in June 2025 - adding the British Virgin Islands and Bolivia to its “increased monitoring” list. It removed Croatia, Mali, and Tanzania. But Iran, North Korea, and Myanmar? Still there. No changes.

That means pressure is rising. The U.S. is pushing for global sanctions on crypto mixers. The EU is preparing rules to freeze wallets linked to sanctioned entities. Japan and Singapore are requiring all exchanges to block traffic from these countries. Even crypto projects that claim to be “neutral” are now forced to choose sides.

And the numbers don’t lie. In 2024, sanctioned countries received 39% of all illicit crypto transactions - nearly 60% of the total value tied to global sanctions. That’s not a coincidence. It’s a strategy.

Until these three countries fix their systems - until they stop letting criminals run free - they’ll stay on the blacklist. And until then, every crypto user, everywhere, will feel the ripple effect.