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Iran eases currency rules to bypass US sanctions with crypto
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- DeepHorus
Iran has reportedly relaxed its foreign currency controls to allow businesses to bypass US sanctions using cryptocurrency, according to a Financial Times report. The move enables Iranian exporters to fund imports directly with their overseas earnings, eliminating the previous requirement to sell foreign currency through the government's official exchange platform at fixed rates. This policy shift is a direct response to tightening US sanctions that have made traditional banking channels increasingly difficult for Iranian trade.
The Central Bank of Iran is now permitting the use of cryptocurrencies like Tether's USDt (USDT) and Bitcoin (BTC) for cross-border settlements. This is facilitated through Iranian cryptocurrency exchanges, providing a new financial pathway for businesses. The measure aims to incentivize exporters to repatriate their foreign currency earnings, which is a critical need for an economy under financial pressure.
This development occurs amid escalating financial pressure from the United States. In early June, the US Treasury sanctioned four Iranian crypto exchanges as part of its "Economic Fury" campaign. Shortly before these sanctions, Treasury Secretary Scott Bessent announced the seizure of approximately $1 billion in Iranian crypto assets, demonstrating a clear US strategy to target Iran's digital financial networks.
Further underscoring the US campaign, authorities directed a freeze of over $130 million in cryptocurrency held in wallets linked to Iran's central bank on July 14. These actions highlight the intensifying digital financial conflict between the two nations. The new Iranian policy represents an attempt to create workarounds within this constrained environment.
Blockchain analytics provide context for the scale of such activities. TRM Labs reported in June that over $3.8 billion in funds flowed between crypto exchange CoinEx and sanctioned Iranian entities over seven years. CoinEx has disputed this, denying any commercial relationship with the Iranian government or domestic exchanges and stating it never provided funding to sanctioned parties.
The Central Bank of Iran has not publicly commented on the reported policy changes. The long-term implications remain uncertain, as it sets up a cat-and-mouse dynamic between Iranian financial innovation and US enforcement capabilities. Future developments will likely depend on the effectiveness of these crypto channels and the potential for additional US regulatory responses.
