Iranian Cryptocurrency Platforms Face Sanctions and Violations
Date: 2025-02-03 Author: Oliver Abernathy Categories: IN WORLD
Since 2017, after the introduction of increased US sanctions, Iranians have been isolated from leading international cryptocurrency exchanges. KYC (know your customer) and AML (anti-money laundering) requirements required for such platforms make them inaccessible to Iranian users. This has led to a rise in the number of local cryptocurrency exchanges, which, according to research, exceed 90. However, only about 10 of them operate as centralized platforms with mobile apps and websites.
Research shows that between 15 and 19 million Iranians are active users of cryptocurrencies, which is approximately 20% of the country's population. One of the most popular local exchanges is Nobitex, which currently has 6 million users. The high trading volume on this platform has attracted the attention of international observers and worried American politicians.
In May 2024, two US senators sent inquiries to the Department of Defense, the Department of the Treasury, and the National Security Council regarding Nobitex. They expressed concern about the exchange’s possible links to money laundering and support for terrorist groups.
Open-source intelligence (OSINT) investigations point to possible ties between Nobitex and international banned organizations, which suggests the possibility of circumventing sanctions and cooperating with the Iranian government.
Experts note that Iran’s economy is suffering greatly from sanctions, inflation, and rising taxes. In such conditions, cryptocurrencies are becoming a popular way to protect capital and circumvent financial restrictions. However, despite the advantages, using local centralized exchanges is associated with risks: authorities can monitor all transactions, and international sanctions can lead to the freezing of users’ assets.
