Iran has been increasing its use of cryptocurrencies as the country faces ongoing international sanctions and limited access to the global financial system. In the spring, Iranian officials were reported to have considered charging shipping vessels around $1 per barrel for passage through the Strait of Hormuz, with payments possibly accepted in bitcoin. This shift highlighted Tehran’s search for alternative revenue sources amid mounting geopolitical tensions and economic constraints.
US Treasury sanctions BitBank over vessel-linked bitcoin payments
The US Treasury Department imposed sanctions on Iranian crypto exchange BitBank on September 17. The Treasury accused BitBank of processing hundreds of millions of dollars in bitcoin transactions linked to ships seeking to transit through the Strait of Hormuz. Authorities also alleged that BitBank facilitated fund transfers for Iran’s Islamic Revolutionary Guard Corps (IRGC), which is designated as a terrorist organization by the US government.
The Treasury had earlier cautioned that using cryptocurrencies, cash, or other payment forms for safe passage through Hormuz could violate US sanctions. With this recent action, the focus expanded from payment proposals to sanctions enforcement targeting those handling such transactions.
The US Treasury’s move signals that crypto exchanges processing Iranian state-linked transactions—including those connected to maritime activities—may face direct penalties.
Crypto ecosystem expands amid banking restrictions
Iran has seen its domestic crypto market grow in response to years of economic isolation. Blockchain analysis firm Chainalysis estimated that Iran’s crypto ecosystem reached about $7.8 billion in 2025. Activity linked to the IRGC reportedly made up close to half this volume during the fourth quarter.
Chainalysis also found that digital wallets tied to the IRGC received more than $3 billion in 2025 alone, although this estimate only accounts for wallets that have been identified by researchers.
State-linked networks and businesses in Iran are increasingly turning to digital assets to access the global economy and bypass limitations on conventional banking. Iran’s largest crypto exchange, Nobitex, reportedly processed over half of the country’s digital-asset inflows during 2025, according to US Treasury data.
Mini dictionary: Chainalysis is a blockchain analytics company that provides data and compliance tools to governments, regulators, and crypto businesses to track and investigate blockchain transactions worldwide.
Sanctions target a wider range of crypto infrastructure
The US government extended its sanctions beyond exchanges to companies supporting the Iranian crypto sector. The Treasury sanctioned the Pishtaz Simorgh Electronic Trade Company, a software developer that built technology for BitBank. This move highlights the broader reach of sanctions, as crypto businesses rely on external providers for software, liquidity, payment integration, and custody solutions.
Non-US companies can also face penalties if they are found to be supporting Iranian crypto operations, according to previous guidance from the US Office of Foreign Assets Control (OFAC). As a result, some technology providers may reconsider working with Iranian partners to avoid losing access to US markets.
The broadening of US sanctions may deter international firms from providing technological or financial services to sanctioned Iranian crypto businesses, increasing compliance risks across the sector.
Market impact and asset preferences
The evolving compliance landscape could leave Iran’s crypto market more isolated, as foreign services become harder to access. This fragmentation may drive Iranian businesses toward smaller, less regulated service providers.
Bitcoin is not always the preferred asset for large transactions in Iran. Chainalysis reported that Iranian state-linked entities tend to rely on stablecoins, which offer the price stability of the US dollar without needing direct access to American banks. By contrast, bitcoin’s volatility complicates its use for commercial settlements, even as it remains harder to freeze due to its decentralized nature.
| Asset | Usage in Iran | Main Advantage |
|---|---|---|
| Bitcoin | Moderate | Harder to freeze, decentralized |
| Stablecoins | High (state-linked) | Price stability, linked to US dollar |
Amid these developments, digital assets continue to serve as alternative payment rails for Iranians affected by sanctions. This trend persists even as market volatility and international policy shifts influence crypto demand and operations inside the country.
