How sanctions reshape the role and volatility of cryptocurrencies in geopolitical conflicts

Geopolitical sanctions are reshaping the cryptocurrency market, with regulators like the U.S. Treasury Office of Overseas Asset Control (OFAC) targeting infrastructure such as Tornado Cash and dismantling criminal networks. Blockchain analytics companies are currently tracking more than 107,000 entities, and Bitcoin’s volatility will reach 38% in 2025 due to geopolitical risks. Stablecoins involve 80% of illegal transactions and face stricter anti-money laundering rules in the UK and the EU. As the industry is institutionalized, compliant technologies and regulated stablecoins provide investment opportunities.