Is Crypto Regulated in Iran? What You Need to Know in 2025
Is crypto regulated in Iran? The answer isn’t simple. It’s not a full ban, but it’s not freedom either. In 2025, Iran has one of the most tightly controlled cryptocurrency environments on Earth - a system built not to encourage innovation, but to survive sanctions, control capital, and monitor every transaction. If you’re trying to use crypto in Iran, you’re not just dealing with technology. You’re navigating a political minefield.
It’s Not Legal, But It’s Not Illegal Either
Iran doesn’t outright ban cryptocurrency. You won’t find a law that says, "Buying Bitcoin is a crime." But that doesn’t mean you can trade freely. The government doesn’t recognize Bitcoin or Ethereum as money. They don’t protect your holdings. And if you use crypto to send money abroad, you’re breaking the rules - even if millions are doing it. The real story is in the Central Bank of Iran’s control. Since early 2025, all crypto activity must go through government-approved channels. Every exchange, every wallet, every miner must be licensed. And the Central Bank has full access to every transaction record. This isn’t oversight. It’s surveillance.The $143 Million Market That Doesn’t Exist on Paper
Despite the rules, crypto is huge in Iran. Daily trading volumes hover around $143 million, according to TRM Labs. That’s more than most countries in the region. Why? Because the rial is collapsing. Inflation hit 45% in 2024. People need a way to hold value. Gold is expensive. Real estate is locked up. Crypto became the only liquid escape. But here’s the twist: the government knows this. They don’t stop it - they tax it. In August 2025, Iran passed its first capital gains tax on crypto profits. That’s right - the state now takes a cut of your Bitcoin gains. They’ve added crypto to the same tax category as gold and foreign currency trading. If you made $10,000 selling Ethereum last year, you owe taxes on it. And the government can track it.The $10,000 Stablecoin Cap That Broke Inflation Hedges
One of the biggest changes came in September 2025. The Central Bank slapped a hard limit: no individual can hold more than $10,000 in stablecoins like Tether (USDT) or DAI. And you can only buy $5,000 worth per year. That sounds reasonable - until you realize stablecoins are Iran’s primary tool to fight inflation. Before the cap, people would convert their rials into USDT and hold it. It wasn’t perfect, but it worked. Now, if your savings are worth $12,000 in stablecoins, you have to sell $2,000 - or risk fines. Many are switching to DAI, the decentralized stablecoin, because it’s harder for the government to freeze. But even that’s risky. In July 2025, Tether froze 42 Iranian-linked addresses - over half of them tied to Nobitex, Iran’s biggest exchange. That sent shockwaves through the market.
Miners Are Forced to Sell to the Government
Iran has cheap electricity. That made it a hotspot for Bitcoin mining. But in 2019, the government changed the rules: every miner must sell their Bitcoin directly to the Central Bank. No selling on exchanges. No holding. Just hand it over, and get paid in rials - at a rate set by the state. The result? Most mining went underground. Licensed miners pay sky-high energy tariffs. Unlicensed ones run rigs in basements and garages, risking power outages and police raids. The government claims this controls energy waste. Critics say it’s just a way to steal crypto from citizens. Either way, Iran is now one of the few countries where mining is legal - but only if you give your profits to the state.Advertising Crypto Is Now a Crime
In February 2025, Iran banned all cryptocurrency advertising. No YouTube videos. No Instagram posts. No billboards. No Telegram channels promoting exchanges. Even discussing crypto publicly can get you flagged. This isn’t about protecting investors. It’s about controlling the narrative. The government doesn’t want people thinking crypto is a solution. They want it to feel dangerous, illegal, and risky - even though it’s the most reliable way for ordinary Iranians to save money.The National Digital Currency: Rial Currency
While cracking down on Bitcoin and Ethereum, Iran is pushing its own digital currency: the Rial Currency. It’s not blockchain. It’s not decentralized. It’s just an electronic version of the rial - controlled entirely by the Central Bank. You can’t mine it. You can’t trade it internationally. You can only use it for domestic payments. The government says it’s modernizing finance. The reality? It’s a tool for surveillance. Every purchase made with Rial Currency is tracked. Every transfer logged. It’s the opposite of what Bitcoin was meant to be. And by mid-2026, the plan is to make it the default payment system for everything - from bus tickets to grocery stores.
How Iranians Are Bypassing the Rules
Despite all this, people are finding ways. About 60% of crypto trading in Iran now happens outside government channels, according to Chainalysis. Users use VPNs to access international exchanges like Binance or Kraken. They trade peer-to-peer using local Telegram groups. Some use privacy coins like Monero, though those are harder to convert to rials. One Reddit user from Tehran wrote in October 2025: "The new system adds 3-5% fees but prevents arbitrary account freezes that happened before." Another said: "The $10,000 limit makes hedging against inflation impossible." These aren’t complaints from crypto fanboys. These are people trying to survive.The Bigger Picture: Sanctions, Politics, and Survival
Iran’s crypto rules aren’t made in a vacuum. They’re shaped by U.S. sanctions. When the UN snapback mechanism reactivated in September 2025, the Central Bank immediately cut off stablecoin purchases. When Tether froze Iranian wallets, Iran didn’t protest - it adapted. They moved to DAI. They pushed for decentralized tools. They didn’t fight the system. They learned to work around it. Some experts say Iran’s approach is a strategic move - using crypto to bypass sanctions while keeping tight control. Others say it’s a desperate gamble. Either way, the result is the same: ordinary Iranians are caught in the middle. They can’t use banks. They can’t trust their currency. And now, even their digital savings are monitored, capped, and taxed.What Happens Next?
By 2026, Iran plans to fully integrate crypto taxes into its national tax system. The Rial Currency will expand to retail use. Mining enforcement will get harsher. And if U.S. sanctions ease - say, through a new nuclear deal - the whole system could collapse overnight. Crypto might become less essential. Or, if sanctions stay, the underground market will grow even larger. For now, crypto in Iran isn’t about speculation. It’s about survival. It’s not a tech trend. It’s a lifeline.Is cryptocurrency legal in Iran?
Cryptocurrency is not officially legal as money in Iran, but it’s not outright banned either. The government allows limited use under strict rules. All trading, mining, and exchanges must be licensed by the Central Bank of Iran. Individuals can hold crypto, but they must follow caps, pay taxes, and use government-approved gateways. Most activity happens through unofficial channels.
Can I buy Bitcoin in Iran?
Yes, but not easily. You can buy Bitcoin through government-licensed exchanges like Nobitex, but you must verify your identity and use approved payment methods. Most people use VPNs to access international exchanges like Binance or Kraken. However, the Central Bank blocks direct rial-to-crypto transfers, so you need to find peer-to-peer traders or use stablecoins as a bridge.
What’s the $10,000 stablecoin limit in Iran?
In September 2025, the Central Bank of Iran imposed a $10,000 maximum holding limit on stablecoins like USDT and DAI for individuals. You can also only buy $5,000 worth per year. This was meant to limit capital flight and reduce exposure to foreign digital assets. Many Iranians say it makes it impossible to protect savings from inflation, especially since the rial loses value daily.
Are crypto mining operations allowed in Iran?
Mining is legal only if you’re licensed and sell all your mined crypto directly to the Central Bank of Iran. Unlicensed mining is illegal and punishable by fines or equipment seizure. Many miners operate underground due to high electricity tariffs and low buyback prices from the government. The Central Bank claims this prevents energy waste, but critics say it’s a way to confiscate crypto.
Is crypto taxed in Iran?
Yes. Since August 2025, Iran has imposed a capital gains tax on cryptocurrency profits. Gains from selling Bitcoin, Ethereum, or stablecoins are taxed the same way as forex or gold trading. The Ministry of Economic Affairs and Finance plans to fully integrate crypto tax reporting into the national system by mid-2026. The government can track transactions through licensed exchanges and payment gateways.
Why did Tether freeze Iranian crypto addresses?
In July 2025, Tether froze 42 Iranian-linked addresses - mostly tied to Nobitex - due to U.S. sanctions compliance. These addresses were flagged as potentially linked to sanctioned entities, including groups connected to the IRGC. The move caused panic in Iran’s crypto market and pushed users toward decentralized alternatives like DAI, which is harder for centralized firms to freeze.
What is the Rial Currency digital coin?
The Rial Currency is Iran’s state-controlled digital version of the national currency. Unlike Bitcoin or Ethereum, it’s not decentralized. It’s not mined. It’s not traded internationally. It’s simply an electronic rial, tracked and issued by the Central Bank. The government plans to roll it out for everyday payments by mid-2026, replacing cash in many areas - and giving them full control over every transaction.
Can I use crypto to send money out of Iran?
Technically, no. Sending crypto out of Iran to bypass sanctions violates the law. The Central Bank blocks direct international transfers. However, many Iranians use peer-to-peer trades with foreign buyers, or convert crypto to DAI and move it through decentralized networks. These methods are risky and can lead to account freezes or legal trouble, but they’re common due to the lack of legal alternatives.