• HTS militants use cryptocurrency for fundraising amid Syria’s political upheaval.  
• Informal crypto businesses thrive in conflict zones, strengthening digital currency use.  
• Syria’s geopolitical ties with Iran and Russia may drive future crypto adoption. 

Syria’s political landscape has shifted dramatically with the collapse of the Assad regime, which ruled the country for over 50 years. As the conflict enters a new phase, cryptocurrency has emerged as a key tool for militants, sparking debates about its role in Syria’s economy.

While crypto adoption remains limited in Syria, the ongoing conflict has led to increased use of digital currencies. Opposition faction HTS has actively used crypto for fundraising. Farrukh Fayzimatov, an HTS member, has solicited crypto donations via social media.

Militant Fundraising Through Digital Currencies

Fayzimatov, also known as Farrukh al-Shami, faced U.S. Treasury sanctions in 2021 for spreading propaganda and gathering crypto donations. Despite surviving an assassination attempt earlier this year, he continues to use digital assets to raise funds, underscoring crypto’s growing role in militant operations.

Other HTS-affiliated accounts have turned to crypto for similar campaigns. Fundraising efforts intensified after the rebel offensive began in late November 2023, driving a surge in donations as the offensive moved from Aleppo to Damascus.

Geopolitical Impacts on Syria’s Crypto Economy

Informal money service businesses (MSBs) in regions like Northwest Syria enable crypto transactions, further integrating digital currencies into the conflict-driven economy. Meanwhile, camps for internally displaced persons (IDPs), including those tied to ISIS, have also seen a rise in crypto-based fundraising.

Syria’s uncertain political future could shape the role of crypto further. Strong ties with Iran and Russia, both of which have robust crypto economies, could accelerate digital currency use in Syria’s rebuilding efforts. 

Moreover, the political and economic instability in neighboring countries such as Lebanon and Türkiye, where digital currencies are becoming popular, may influence Syria’s economic policies in the future.