Iran has built a digital asset economy worth about $7.78 billion to move money outside U.S. sanctions and the dollar system, according to Chainalysis. The report says crypto activity across the country climbed sharply in 2025, with participation spanning ordinary citizens, state institutions, and security-linked actors. In this setting, digital assets became a financial rail shaped by sanctions pressure, domestic unrest, and military conflict in the region.
Transaction spikes tracked major attacks and the 2025 Iran-Israel war
Chainalysis published its report on January 15 and said several bursts in on-chain activity lined up with major events. It pointed to the January 2024 Kerman bombings and missile strikes in October 2024. The firm also connected another jump in activity to the 12-day Iran-Israel war in June 2025.
Iran has been under sanctions since 1979, with restrictions expanding between 2006 and 2010. In 2019 and 2020, U.S. sanctions reached deeper into the country’s banking and financial sectors. Pressure rose again after U.S. President Donald Trump revived the “maximum pressure” campaign, with measures aimed at oil exports and sanction enforcement.
Inflation at 40% to 50% coincided with heavier Bitcoin withdrawals
As inflation climbed to 40% to 50% and the rial weakened, crypto usage grew, the report said. Chainalysis found that Iranian citizens increased Bitcoin withdrawals during protests and blackouts, moving BTC into personal wallets. The firm described that shift as a reaction to currency deterioration and political instability.
The source material says demonstrations began on December 28, 2025 and spread to multiple cities. Reports cited there say more than 2,000 people were killed in the suppression of the protests. Chainalysis added that similar behavior has appeared in other places under conflict or economic stress, where users move assets away from platforms and into self-custody.
Bitcoin mining became legal in 2019 and mined BTC was sold to the central bank
Iran legalized Bitcoin mining in 2019 with the use of subsidized electricity. Authorities later sold mined Bitcoin to the central bank to fund imports. Estimates cited in the article place Iran at roughly 2% to 5% of global Bitcoin hash power.
That makes the country’s crypto economy more than a retail hedge against inflation. It also ties digital assets to state access to cross-border payments at a time when traditional financial channels face heavy restrictions.
IRGC-linked addresses received over $3 billion in 2025, report says
Chainalysis said wallet addresses linked to the Islamic Revolutionary Guard Corps received more than $3 billion in crypto during 2025. In Q4 alone, those wallets accounted for more than half of Iran’s total crypto inflows. The report also said Iran’s central bank accumulated over $507 million in USDT.
In a separate data point cited by the source, The Washington Post reported in January that networks tied to the IRGC had moved about $1 billion through U.K.-registered exchanges since 2023. Those developments came after joint U.S. and Israeli military operations targeting Iran’s military capabilities. Trump said the operations were intended to stop missile threats and prevent nuclear weapon development.