Crypto is popular in Iran

Iran’s crypto ecosystem was valued at more than $7.78bn last year, growing at a faster pace compared with 2024, according to crypto transaction monitoring firm Chainalysis. But the data suggests it is not just Iranian citizens who have turned to crypto in a bid to offset the impact of rampant inflation and a weakening currency.

The Islamic Revolutionary Guard Corps (IRGC) accounted for about 50 percent of on-chain activity in the fourth quarter, mirroring its dominance in the country’s economy. Harder to trace and easier to transfer than traditional bank payments, crypto offers a way to sell oil, buy weapons and commodities, circumventing sanctions. And it has also been a method of payment for imports of goods.

Yet Iran’s turn to crypto has also set off a new cat-and-mouse race with the US, with Washington trying to strangle Tehran’s economic options, already limited because of decades of sanctions.