US Treasury sanctions Iran's digital asset industry for the first time, targeting exchanges, OTC desks, and IRGC-linked wallet addresses.
Regulation & Gov ·
The US Treasury's Office of Foreign Assets Control has expanded sanctions to explicitly target Iran's digital asset sector for the first time, marking a significant shift in how the government approaches crypto infrastructure. The action, part of Operation Economic Outcast announced in August, blacklisted exchanges, over-the-counter desks, payment processors, and wallet addresses connected to Islamic Revolutionary Guard Corps-affiliated actors. This development coincided with the Iranian rial reaching 2.02 million per dollar, a record low, down from 1.53 million in the first quarter of the year.
Iran's crypto economy has functioned as an alternative financial channel since the country legalized bitcoin mining in 2019. State-linked mining operations reportedly command roughly 65% of domestic mining capacity and have contributed between 3% and 7% of global hashrate annually, generating an estimated $1.35 billion to $3.15 billion in coins over time. Broader crypto holdings in Iran reached $7.78 billion in value during 2025, with IRGC-linked wallet addresses alone receiving more than $3 billion in the fourth quarter of that year, according to chain analysis firms.
The Treasury previously sanctioned four major exchanges in June and seized nearly $500 million in Iran-linked assets in April following a cyberattack. Treasury Secretary Scott Bessent stated the goal of forcing state-run Bank Melli to lose dollar access entirely, with secondary sanctions on Iran's trading partners possible within weeks. It remains unclear how effectively the new restrictions will disrupt existing flows or whether Iran will develop further workarounds across multiple blockchain networks.