Iran bets big on cryptos to bypass sanctions

Iran is pushing hard on cryptos. The country wants to escape the sanctions that have been stifling it for years, and Bitcoin is becoming its best ally. The Revolutionary Guards are leading the charge, using these digital currencies to conduct international business without going through traditional banks.

The strategy is working quite well. By 2025, Tehran has intensified the use of cryptocurrencies to support an economy under constant pressure. Transactions are multiplying, volumes are rising, and the government is beginning to see the tangible benefits of these digital assets. There’s really no choice either – with sanctions blocking everything, cryptos offer a vital escape route.

The Guards Take Action

The Revolutionary Guards are not doing things halfway. This influential military force is exploiting cryptocurrencies to evade international financial restrictions that paralyze the country. With sanctions still weighing on Iran, these digital transactions allow access to foreign markets without touching conventional banking systems.

In January, reports revealed that the Guards were using crypto exchange platforms to buy prohibited goods. The exact volume? Still unclear. But the impact is there, facilitating the acquisition of materials necessary for various Iranian industries. A strategy that has become vital to keep certain economic operations afloat.

Transactions are conducted discreetly. The Guards use multiple exchange platforms, diversifying their operations to avoid detection. According to several industry sources, they favor cryptos less traceable than Bitcoin, like Monero or Zcash.

Too risky to bet everything on a single approach.

The Population Joins In

For ordinary Iranians, cryptos represent a way to protect their savings against the devaluation of the rial. Galloping inflation is pushing many citizens to convert their savings into more stable digital assets. In 2024, the volume of crypto transactions by Iranians jumped by 35%.

Local businesses are beginning to accept cryptocurrencies as a means of payment. A direct response to the economic volatility hitting the country. Experts estimate that the use of cryptos could grow further if economic conditions do not improve. And frankly, improvement is not likely anytime soon. This evolution is in line with GameStop betting nearly all its reserves, highlighting broader trends.

In February 2026, Iranian Finance Minister Ali Khatami announced that the country plans to develop a national cryptocurrency platform. The initiative aims to centralize transactions and offer a secure alternative to foreign platforms. The project, although controversial, could transform how Iranians access cryptos.

On February 15, 2026, the Iranian government increased the monitoring of cryptocurrency transactions. Local platforms must now report any transaction exceeding $5,000. A measure aimed at limiting illegal activities while allowing users to continue legitimate transactions.

The Central Bank of Iran played a key role in 2025 by allowing certain local banks to process cryptocurrency transactions. This decision, although limited, has increased the legitimacy of cryptos in the country. But restrictions on amounts and types of transactions remain strict – authorities remain cautious about this rapidly expanding market.

Not easy to navigate in this context.

Some international companies continue to show interest in the Iranian cryptocurrency market despite the sanctions. In March 2026, a Dubai-based tech company expressed interest in partnering with Iranian startups specializing in blockchain. This potential collaboration could bring new economic opportunities to local entrepreneurs. Analysts have linked this to SIREN token hitting the threshold in a changing context.

The private sector in Iran, notably tech companies, has shown increasing interest in developing cryptocurrency payment solutions. In January 2026, the startup Tehran Tech launched a digital wallet allowing instant transactions in Bitcoin and Ethereum, attracting the attention of young Iranian entrepreneurs.

In March 2026, a survey conducted by Iranian cybersecurity company Safeguard revealed that nearly 20% of cryptocurrency users in Iran have fallen victim to fraud related to exchange platforms. These incidents highlight the security challenges faced by users in an under-regulated market. Scams are multiplying, taking advantage of the lack of oversight.

On January 10, a blockchain conference held in Tehran brought together international experts to discuss the economic implications of cryptocurrencies in Iran. The discussions highlighted the need for international cooperation to ensure the security and efficiency of digital transactions in the country.