Iran is increasingly using cryptocurrencies to settle cross-border trade as the country faces intensifying U.S. sanctions and a naval blockade, the Financial Times reported on Sep. 8. A crypt
Iran is increasingly using cryptocurrencies to settle cross-border trade as the country faces intensifying U.S. sanctions and a naval blockade, the Financial Times reported on Sep. 8.
A cryptocurrency is a digital currency that runs on a blockchain, a shared public ledger, allowing money to move across borders without passing through the traditional banking system.
The country's central bank has in recent months quietly eased its strict foreign currency controls, encouraging businesses to bring funds back into the country through whatever channels are available, including crypto exchanges that handle Tether's USDT and Bitcoin (BTC), citing regime insiders, business executives and analysts, the report said.
Tether's USDT is a stablecoin, a type of cryptocurrency designed to hold a steady value against the U.S. dollar, making it useful for trade settlements.
Bitcoin is the world's first and largest decentralized cryptocurrency which has seen a wild appreciation in its value since its launch in 2009.
Related: Bitcoin hits 3-month high amid Treasury's new Iran sanctions
Iran has been largely cut off from the global financial system for decades.
Exporters were previously required to return earnings in foreign currency and sell them through a government-run platform at official exchange rates, which were often far below market value, according to the report.
That system drove businesses to park funds overseas or bring them back undeclared. Iran's General Inspection Organisation estimated that more than 20,000 individuals and companies failed to return the equivalent of roughly $100 billion.
The relaxation has accelerated since the U.S. and Israel launched military operations against Iran earlier this year. Under less strict norms, traders can now exchange foreign currency on the open market and use export earnings to finance imports directly, bypassing the official system entirely.
The scale of Iran's crypto activity is already substantial. Nearly $10 billion worth of cryptocurrency moved through the country in 2025, according to data from TRM Labs.
The U.S. Treasury has warned that anyone transacting with Iran using digital assets could face sanctions, and Tether froze $344 million in wallets identified by U.S. authorities as linked to Iran's central bank in April.
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