Despite tough economic sanctions and a weakening currency, Iran continues to purchase machinery, fuel, and military equipment internationally. Analysts say a major reason behind this is bitcoin mining, which has given Iran an alternative payment network outside the traditional banking system. Iran legalised bitcoin mining in 2019. At that time, it was presented as an economic experiment. But now, experts say, it has gradually transformed into a payment network that circumvents sanctions.
SWIFT transfers not required
Bitcoins generated through mining can be transferred directly to government-controlled wallets and then used for payments abroad. This allows Iran to avoid traditional banking systems for international transactions. SWIFT transfers are not required, correspondent banks are not used, and US Treasury oversight is largely avoided. A SWIFT transfer is a secure, standardised method for sending international wire transfers between banks worldwide via the Society for Worldwide Interbank Financial Telecommunication network.
According to American bitcoin strategist Jake Percy, the cost of mining a single bitcoin in Iran is around USD 1,300. Meanwhile, the international price of a bitcoin is around USD 73,000. This creates a potential margin of approximately USD 71,700 per bitcoin, which could be used for international transactions.
Blockchain analytics company Chainalysis estimates Iran’s crypto ecosystem could reach approximately USD 7.78 billion by 2025. According to the report, more than half of the crypto funding coming into Iran at the end of 2025 was linked to wallet addresses associated with the Islamic Revolutionary Guard Corps (IRGC). More than USD 3 billion in transactions took place through these addresses in one year alone.
Blockchain analysts noticed unusual financial activity
Interestingly, crypto transactions are recorded entirely on public blockchains. This is also providing intelligence agencies with new information. According to NDTV, when the US and Israeli attacks on Tehran occurred on February 28, blockchain analysts noticed unusual financial activity before traditional intelligence sources. Iran’s largest crypto exchange, Nobitex, suddenly experienced a large outflow of funds. Between February 28 and March 2, approximately USD 10.3 million was transferred out of the exchange, and hourly transaction volumes exceeded the 2026 average by 873 per cent.
According to a crypto analysis report, illegal or banned crypto addresses received approximately USD 154 billion in 2025. The largest portion of this was funds sent to banned entities. Russia transacted approximately USD 93 billion through a stablecoin to evade sanctions. North Korean hackers stole USD 1.5 billion in an attack on a crypto exchange and invested it directly in their weapons program. Experts say that blockchain has emerged as a new challenge to the dollar-based global sanctions system, which many countries are using in different ways.
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