The legal use of cryptocurrencies in Iran has gone through rapid and sometimes contradictory changes. Sanctions pressure and economic challenges have driven Iran to both restrict and formalize crypto mining, transaction, and exchange. In this post, we unravel current laws, government measures, and practical guidance for compliance.
1. Legal Foundations & Historical Overview
- In 2018, Iran banned banks and financial institutions from facilitating crypto transactions due to concerns over money laundering and terrorist financing .
- Later that year, mining was legalized, establishing licensing and monitoring systems.
2. Mining Regulations
- Miners must be licensed and sell mined coins to the Central Bank .
- High energy tariffs and frequent electricity curbs—especially during winter—aim to control power use.
3. Exchange & Transaction Rules
- As of early 2025, platforms must operate under a central bank‑approved API and handle rial transactions transparently.
- Domestic crypto-to-fiat services saw reversals in late 2024, but were gradually reinstated by January 2025.
4. Use for Trade & Sanctions Evasion
- In August 2022, Iran used cryptocurrencies to import goods—over US$10 million in cars—as part of circumventing sanctions.
- However, any dealings with sanctioned entities via crypto remain illegal and punishable.
5. Enforcement, Cybersecurity & Public Impact
- Frequent crackdowns on illegal miners to prevent power shortages.
- In June 2025, Israel-linked hackers targeted Nobitex, draining ~$90M and prompting national crypto curfews.
