Iran Bypasses US Sanctions with Cryptocurrency
The Central Bank of Iran has relaxed its foreign currency controls to encourage businesses to repatriate their overseas earnings, including through cryptocurrency. According to a report by the Financial Times, exporters can now use cryptocurrencies like Tether's USDt (USDT) and Bitcoin (BTC) to settle cross-border transactions through Iranian exchanges. This move is seen as an attempt to bypass US sanctions, which have been tightened in recent months.
The relaxation of foreign currency controls also allows exporters to directly finance imports without first selling their foreign currency through the government's exchange platform at official rates. However, this decision has sparked concerns about potential money laundering and illicit activities.
In June, blockchain analytics company TRM Labs reported that over $3.8 billion had flowed between crypto exchange CoinEx and sanctioned Iranian entities over more than seven years. CoinEx denied any commercial relationship with the Iranian government or domestic Iranian exchanges, stating it never provided funding channels to sanctioned parties.