SDN List – What It Is and Why It Matters for Crypto

When dealing with SDN list, the United States Treasury's Office of Foreign Assets Control (OFAC) catalog of individuals, companies, and vessels that are blocked from U.S. transactions. Also known as Specially Designated Nationals, it serves as the front‑line tool for enforcing economic sanctions worldwide.

Understanding the SDN list starts with the agency that maintains it: OFAC, the division of the U.S. Treasury responsible for administering and enforcing sanctions programs. OFAC’s rulings cascade into cryptocurrency compliance, the set of policies, KYC/AML procedures, and monitoring tools that crypto firms use to avoid dealing with sanctioned parties. When a wallet address or exchange partner appears on the SDN list, compliance systems must flag, freeze, or reject the transaction.

One of the most visible ways firms act on these rules is through geofencing, technology that blocks access to services from specific geographic regions or IP ranges. Geofencing often pairs with VPN detection – a multi‑layered approach that spots hidden IPs, proxies, and tunneling tools. Together they stop sanctioned users in Iran, Russia, or other restricted jurisdictions from slipping through a crypto exchange’s front door.

Practical Implications for Crypto Players

The ripple effect of the SDN list shows up everywhere in the industry. European MiCA passports now require proof that a platform isn’t serving anyone on the OFAC list, while Bybit’s recent geofencing update illustrates how exchanges translate sanctions into code. Iran’s Bitcoin mining operations, for example, try to hide behind cheap electricity but still run afoul of the SDN list, prompting tighter VPN detection on global platforms. Even a‑irdrop campaign must screen participants against the list to avoid handing tokens to prohibited entities. All these scenarios hinge on three core actions: identify the sanctioned entity, enforce the block via compliance tooling, and continuously monitor for evasion techniques.

Below you’ll find a curated set of articles that dive deeper into each of these areas – from detailed guides on how Bybit detects VPN use, to step‑by‑step compliance checklists for MiCA passport holders, and analyses of how sanctions shape crypto mining strategies. Use them to build a robust compliance roadmap, sharpen your risk‑management practices, and stay ahead of regulators who increasingly tie sanctions enforcement to every corner of the digital asset ecosystem.