US Treasury Expands Sanctions Authority Over Iran's Digital-Asset Sector

The US Treasury's Office of Foreign Assets Control (OFAC) has expanded its authority to target businesses connected to Iran's digital-asset economy. This move allows OFAC to pursue overseas services that convert crypto into usable payments, liquidity, and trade settlement.

Under the new determination, OFAC can now sanction individuals or entities operating in Iran's digital-asset sector, regardless of their location. This includes service providers, such as brokers, payment firms, exchanges, and counterparties who facilitate conversions or provide liquidity.

The expansion is part of a broader campaign against Iran's economic links abroad, dubbed 'Operation Economic Outcast.' OFAC has designated nearly 60 individuals and entities tied to Iranian nuclear procurement, cyber activity, and oil-revenue networks. One notable case involves Ivan Obukhov, a UAE-based Ukrainian national who allegedly processed over $100 million in cryptocurrency payments for the Islamic Revolutionary Guard Corps-Qods Force.

The new authority does not automatically sanction every Iranian exchange or crypto company; OFAC still needs to identify and designate specific individuals or entities. However, the expansion marks a significant shift in targeting Iran's use of digital assets in transactions linked to the IRGC and regime insiders.