Crypto in Iran: Bans, Workarounds, and Why It Still Thrives

When you hear crypto in Iran, the use of digital currencies like Bitcoin and USDT to bypass financial restrictions in a country under heavy international sanctions. Also known as sanction-resistant finance, it’s not about speculation—it’s survival. Iran’s government officially bans crypto trading and mining, yet millions use it anyway. Why? Because the Iranian rial has lost over 90% of its value since 2018, and banks won’t let people send money abroad. Crypto isn’t a trend here—it’s a lifeline.

The FATF blacklist, a global list of countries deemed high-risk for money laundering and terrorist financing. Also known as non-cooperative jurisdictions, it’s why Iran, North Korea, and Myanmar are targeted isn’t just about politics—it’s about control. The FATF says Iran uses crypto to fund weapons programs and evade sanctions. And yes, some do. But for most Iranians, it’s about buying medicine, sending remittances to family overseas, or protecting savings from hyperinflation. The government bans crypto exchanges, but peer-to-peer trading on Telegram and local platforms like Bitwired (yes, even sketchy ones) still runs. No regulation? No problem. People just find ways.

Miners in Iran used to run entire warehouses of rigs, powered by cheap electricity. Then the government cracked down—shutting down farms, seizing equipment, even arresting operators. But mining didn’t disappear. It went underground. Small-scale miners now run rigs in homes, garages, even basements. Why? Because the cost of electricity is still among the lowest in the world, and Bitcoin’s price keeps rising. Even with the risk, the math still works. Meanwhile, cryptocurrency sanctions, global restrictions that block financial institutions from dealing with certain countries. Also known as crypto embargoes, they’re meant to isolate Iran have backfired. They pushed Iranians toward decentralized tools—no banks, no intermediaries, no one to ask for permission.

It’s not just Bitcoin. USDT, the stablecoin pegged to the dollar, is the real workhorse. People buy it on P2P markets, trade it for goods, and use it to pay for imports. You can’t open a PayPal account in Iran? No problem. You can buy USDT with cash from a guy in a coffee shop. The system is messy, risky, and illegal—but it works. And that’s the point. This isn’t about crypto being a revolution. It’s about people using it to stay afloat when the system fails them.

What you’ll find in the posts below isn’t theory. It’s real stories from the frontlines: how Iranians trade crypto under radar, why the FATF blacklist targets them, what happens if you get caught, and how tools like Bitwired and other unregulated exchanges still pop up despite crackdowns. You’ll see how crypto in Iran isn’t a policy debate—it’s a daily act of resistance. And it’s not going away anytime soon.