Iran Expands Use of Digital Currencies to Bypass Sanctions and Move Funds Abroad

Senior Iranian officials have increasingly relied on digital currencies as a key method to transfer funds out of the country, according to a report by Kan News. Central to this mechanism is the stablecoin USDT, issued by Tether, which enables the conversion of large sums into liquid dollars and facilitates cross-border transfers. This growing use of digital currencies is supported by Iran's developed crypto infrastructure, including extensive Bitcoin mining operations and adoption by the Iranian Central Bank.

The cryptocurrency channel has become a significant part of the economic activities of the Islamic Revolutionary Guard Corps (IRGC). Through this system, Iran aims to circumvent Western sanctions, safeguard funds outside its borders for future needs, and conduct transactions beyond Iranian territory. Concurrently, international efforts are underway to curb Iran's use of digital currencies, including the recent freezing of dozens of IRGC crypto wallets.

Yesterday, the U.S. Treasury imposed new sanctions targeting Iran's shadow banking system and crypto-related trade activities. These measures also included two shell companies based in the United Arab Emirates, reflecting ongoing attempts to disrupt Iran's financial networks linked to digital currencies.