Iran Taps Cryptocurrencies to Bypass Financial Sanctions
The Central Bank of Iran has told businesses and traders to repatriate funds using any means necessary, including cryptocurrencies like Bitcoin (BTC) and Tether (USDT), in a bid to undermine financial sanctions. According to reports, cryptocurrency use in Iran is becoming increasingly mainstream, with trade moving onchain and reaching $10 billion in 2025.
The Financial Times (FT) reported that Iranian businesses, regime insiders, and analysts confirm the trend. Blockchain analytics firm TRM Labs and Chainalysis estimate that $8-10 billion worth of cryptocurrency activity linked to Iran took place last year. Elliptic's estimates suggest that Iran accounts for 4.5% of global Bitcoin mining hashrate, but other sources put this figure lower at around 0.12% or 0.2%. The discrepancy is due to varying methods used to track hashpower.
The use of cryptocurrencies in trade is not a new phenomenon in Iran. In April, reports emerged that the country was charging BTC and USDT for safe passage through the Strait of Hormuz. Former Central Bank of Iran PR chief Mostafa Ghamari Vafa revealed that the central bank had opened four special accounts for collecting fees from importers and exporters.
The US Treasury Department has been cracking down on Iranian digital asset channels, with Secretary Scott Bessent announcing Operation Economic Outcast in May. This initiative aims to sever foreign nations' ties with Iran's crypto activities. However, the FT report suggests that financial sanctions are losing their effectiveness in a borderless digital era.