Key Insights
- Crypto activity in Iran has increased to $7.8 billion in 2025, amidst political instability.
- The crash in the Iranian Rial has led citizens to adopt crypto as a safe-haven asset.
- Iran’s Islamic Revolutionary Guard Corps is also increasing its use of crypto to evade sanctions from the US and other countries
Crypto activity in Iran reached $7.78 billion in 2025, according to a new report from Chainalysis. This was a result of the country’s political unrest, which has sent its currency crashing amid US sanctions.
According to the report, the instability within the country, influenced by both internal and external factors, has made crypto an alternative. Interestingly, its adoption has cut across all facets, with both citizens and government authorities using crypto.
Citizens Embrace Crypto for Transactions; Opt for Self-Custody
With Iran under economic sanctions from the US and other world powers, the value of its domestic currency, the Rial, has been in free fall since 2018. However, the recent mass protest in the country, which has led to an internet blackout, thousands of deaths, and threats of US intervention, has further worsened things.
One US Dollar is now equivalent to over one million Iranian rials after the most recent collapse on January 8. In the face of recent currency depreciation that has made the Rial almost worthless, users have turned to crypto to preserve capital.
However, the adoption has not been only due to economic reasons, with more Iranians now using crypto to escape government interference. According to Chainalysis, this has been most evident during the current wave of mass protests in the country.
Onchain data showed an increase in the value of crypto transactions along with a higher number of transfers to personal wallets. The surge in withdrawals for self-custody purposes is most evident in users moving their Bitcoin from Iranian exchanges to personal wallets.
The report stated:
“BTC’s role during this crisis extends beyond mere capital preservation. For many Iranians, cryptocurrency has become an element of resistance, providing liquidity and optionality in an increasingly restricted economic environment.”
Iranian Military Increasingly Adopting Crypto for Sanctions Evasion
Meanwhile, the surge in Iran’s crypto activity was not just due to residents’ adoption. Islamic Revolutionary Guard Corps (IRGC), a branch of the Iranian Armed Forces under sanctions from world powers, has also been using crypto to evade sanctions.
Interestingly, its reliance on crypto has been growing over the past few months. Chainalysis identified that wallets controlled by IRGC accounted for more than 50% of all crypto value received in Q4 of 2025.
The volume received throughout the year also increased by around 50% from over $2 billion in 2024 to more than $3 billion in 2025. However, this is only from identified wallets and does not include several other potential wallets belonging to financiers and shell companies with ties to the IRGC.
This aligns with a recent TRM Labs report that found the IRGC has laundered over $1 billion through two UK crypto exchanges, Zedcex and Zedxion, since 2023. The funds accounted for 56% of the volume for the two exchanges, and it appeared that the IRGC controlled the offshore exchanges.
Oluwapelumi Adejumo is an experienced cryptocurrency journalist who has contributed to leading blockchain news platforms, including CryptoSlate and BeInCrypto.
