Iran adopts crypto for trade amid sanctions, asset freezes

Iran now permits Bitcoin and Tether for cross-border trade, easing currency controls amid U.S. sanctions. Crypto volumes reached $10B in 2025, despite asset freezes by U.S. authorities.

Iran has eased its foreign exchange regulations, now allowing businesses to use cryptocurrencies like Bitcoin and Tether (USDT) for cross-border transactions. This shift comes in response to heightened U.S. sanctions and financial restrictions, which have made traditional international payments more challenging. With the new policy, exporters and importers can settle global trade through domestic crypto exchanges, bypassing official currency channels and rates. In 2025, approximately $10 billion in crypto moved through Iran, accounting for about 4.5% of global Bitcoin mining activity. U.S. and allied authorities have reacted by freezing or blocking over $1 billion in crypto assets linked to Iran, with Tether demonstrating its ability to freeze assets on blockchains. The central bank has reportedly stopped tracking money flows, enabling traders to exchange currency on open markets. This normalization of crypto payments is expected to boost liquidity and transaction volumes, providing Iranian businesses with alternative routes for international trade despite ongoing sanctions.