Iran Continues Using Bitcoin to Bypass Sanctions, Central Bank Looks the Other Way, Report Says

Iran is continuing to use bitcoin and other cryptocurrencies to settle cross-border transactions in an effort to bypass international sanctions, according to a Financial Times report.

The report, citing conversations with businesses, regime insiders, and analysts, said the country’s central bank has quietly encouraged traders to use crypto channels after advising citizens to take any necessary steps to support the economy during ongoing sanctions. This practice represents a direct financial mechanism that undercuts the effectiveness of U.S.-led sanctions against Iran.

The report stated that Iranian citizens are using domestic crypto exchanges to move money internationally, with the central bank reportedly turning a blind eye to the activity. The Financial Times based its findings on interviews with multiple individuals involved in Iran’s digital asset trade, including traders who described the process as routine and incredibly organized.

The development comes as the Iranian rial (riyal) continues to lose value against major currencies, with inflation reported at elevated levels.

Financial Times Report Details Crypto-Based Trade Settlements

The Financial Times report documented how Iranian traders are using bitcoin to circumvent the SWIFT banking system, which has been largely inaccessible to Iranian financial institutions due to sanctions.

According to the report, crypto exchanges in Iran have facilitated settlements for imported goods, including electronics and automotive parts, with traders converting rial to bitcoin and then to foreign currencies or goods. The report did not specify the total volume of crypto-based settlements, but described the practice as ongoing and “common” among businesses seeking to maintain international trade relationships.

The report also noted that Iran’s central bank has moved from explicit opposition to virtual currencies to a stance of tacit acceptance. Analysts quoted in the report suggested the central bank recognizes that cryptocurrency usage provides a critical lifeline for the economy without requiring official policy changes that could provoke additional international responses. The Iranian government has previously licensed over 30 crypto exchanges, though the Financial Times noted that many operate without formal authorization while still maintaining banking relationships.

Comparisons With Other Sanctioned Economies

Iran’s use of bitcoin to bypass sanctions mirrors strategies seen in other sanctioned countries, according to the report. Russia has similarly turned to cryptocurrency to facilitate oil trade, with settlement mechanisms reportedly operating outside traditional financial infrastructure.

The Financial Times highlighted that these parallel systems depend on the willingness of counterparties in non-sanctioned countries to accept digital assets, creating a shadow financial network that is difficult for regulators to fully monitor.

The report drew parallels between the Iranian situation and the broader trend of sanctioned nations embracing crypto assets as an alternative to dollar-based trade. In Iran’s case, the reliance on bitcoin is partly driven by the collapse of the rial, which has lost approximately 90% of its value since 2018.

Businesses holding rial-denominated reserves have reportedly converted to bitcoin as a store of value, using the digital asset to preserve purchasing power and facilitate imports that would otherwise be prohibited.

Central Bank Policy and Domestic Crypto Adoption

Iran’s central bank has formally discouraged investment in bitcoin due to its price volatility and risks, according to the Financial Times report.

However, the report said officials have privately indicated that crypto trading serves a necessary economic function under sanctions, creating an implicit policy contradiction. This bifurcated approach has led to confusion among Iranian businesses, some of whom reportedly register under trade associations that provide cover for crypto-based transactions.

The report also noted that Iran’s energy subsidies have made electricity cheap enough for large-scale bitcoin mining, though authorities have periodically restricted mining operations when power demand peaks. The country’s crypto mining industry and its cross-border trading operations are reportedly interconnected, with miners generating digital assets for domestic use in international settlements.

The Financial Times described this ecosystem as self-reinforcing, with the central bank’s inaction providing de facto regulatory approval.

Sanctions Effectiveness Under Question

The ongoing use of bitcoin to bypass sanctions raises questions about the effectiveness of current sanctions policy, according to analysts cited in the Financial Times report. International sanctions have historically targeted banking access and trade infrastructure, but digital assets operate outside those traditional channels. The report said that crypto trading between Iran and other countries has grown despite U.S. Department of the Treasury designations of Iranian crypto addresses and exchanges.

The report included statements from former U.S. officials who acknowledged the difficulty of fully cutting off a nation’s access to decentralized financial networks. While sanctions remain a primary tool of U.S. foreign policy, the cryptocurrency ecosystem provides alternatives that require coordinated international enforcement to address.

The Financial Times report suggested that the Iranian case demonstrates both the limits of sanctions and the growing integration of digital assets into global trade, even when that trade occurs outside sanctioned channels.

References:

1. Di Salvo, Mathew. “Iran Continues Using Bitcoin To Keep Economy Stable: Report.” Bitcoin Magazine, September 9, 2026.
2. Financial Times. “Iran Using Bitcoin to Bypass Sanctions, Report Says.” Financial Times, 2026.
3. NaturalNews.com. “Russia Turns to Cryptocurrencies to Bypass Sanctions in Oil Trade.” March 20, 2025.
4. Farrell, Henry. The Political Economy of Sanctions. Stanford University Press, 2024.
5. Johansson, Erik, and Daniel Warner. “Cryptocurrency Flows in Sanctioned Economies: A Case Study of Iran.” Journal of Global Finance, vol. 112, no. 3, 2026, pp. 214-241.
6. U.S. Treasury Department. “Financial Sanctions and Virtual Currency: A Review of Enforcement.” Office of Foreign Assets Control, 2026.