Legal Crypto In Iran

Overview of Cryptocurrency Legality in Iran

Legal Status of Cryptocurrency

Iran’s crypto laws are heavily influenced by its geopolitical situation, facing harsh international sanctions from the U.S. and other countries. In 2018, the Central Bank of Iran outlawed trading and ownership of cryptocurrencies, claiming they posed risks such as money laundering and terrorism financing. In 2022, the government established a framework that would allow cryptocurrencies, such as bitcoin, only for international trade in order to ease import payments due to sanctions. However, domestic retail trading and possession is still forbidden in non state-approved contexts. Crypto mining is allowed, although a licence is required and the proceeds from mined assets must be sold to the Central Bank for trading purposes. One notable aspect of Iran’s policy is its use of cryptocurrencies as a strategic payment bridge to pay for imports of essential goods, including medicine and factory goods, using crypto to skirt traditional banking limitations. Press reports in 2024 detail large cryptocurrency flows to IRGC sanctioned entities directly, thus revealing Iran’s part in this sanction evasion practice, which has attracted international attention.

Laws and Regulations

Iran’s regulatory framework is tailored to its economic isolation and energy dynamics, as detailed in the table below.

Year	Legislation	Description
2018	Central Bank Ban	Prohibited cryptocurrency trading and possession, targeting exchanges and financial institutions to curb illicit activities.
2022	Trade Legalization Framework	Legalized cryptocurrencies for import payments, established licensing for mining, and regulated trade-related exchanges to support sanctions evasion.
Ongoing	Mining Regulations	Legalized licensed mining; requires mined assets to be sold to the Central Bank. Unlicensed mining faces crackdowns due to strain on Iran’s power grid.
Ongoing	Sanctions Compliance Rules	Enables crypto use for trade to bypass sanctions, but international penalties (e.g., OFAC sanctions on Kraken in 2022) enforce oversight.

The framework is uniquely state-centric, prioritizing trade and energy management over retail markets.

Major Exchanges, Methods of Trading

Sanctions also cut off access to global exchanges such as Binance, encouraging reliance on local platforms. Nobitex, and Wallex (both Iran’s top regulated exchanges) are responsible for converting cryptos to fiat to buy/sell. It is relatively common to trade peer-to-peer (P2P) cash or bank transfer over informal networks, sometimes discreetly due to legal concerns. Over the counter (OTC) brokers They are the ones for handling big trade deals especially those in import export business. A distinctive feature of Iran’s market is the P2P groups based on Telegram that traders use to organize crypto transactions in rial or stablecoins, highlighting Iran’s dependence on encrypted messaging for financial activities because of its opaque, censored internet.

DeFi (Decentralized Finance) space

Decentralized Financial (DeFi) services are in their infancy in Iran, a situation that is caused by lack of regulations and infrastructure. DeFi is functioning as a grey area, risking prosecution. Internet censorship, which is imposed via the NIN or the country’s National Information Network, and spotty connectivity makes it harder to access protocols like Uniswap or Aave. DeFi platforms in U.S. deny service to Iran IP due to sanctions. A few users use VPNs to access DeFi, but the adoption remains low, mostly by the tech savvy.

NFT (Non-Fungible Token) Trading Platform

The NFT market is young, held back by legal and financial impediments. The NFTs are subject to the general ban on cryptocurrencies for non-trade purposes, which might bring legal risks. Participation has been discouraged by high Ethereum gas fees and limited access to platforms, such as OpenSea. Tight restrictions on access to international payment systems also impede trade. Some have turned to Iran-based blockchain projects—including experimental NFT projects on local chains—to make culturally relevant digital art, but these efforts have been small-scale and haven’t garnered mainstream attention.

Recent Developments

As of June 2025, it's business as usual: Iran remains open for business with crypto but closed for business with retail. International overseers have clamped down harder on the government’s use of crypto for sanctions evasion, used to increasingly fund proxy groups. A distinctive development is the emergency of a state-run digital currency in Iran, the crypto-rial, which is seen as a way to keep trade going and retain control over digital transactions, though the system is not operational.

Useful Information

• Domestic Trade: Not allowed except in the case of state-sanctioned transactions.
• International Trading: Allowed for import payments, available under 2022 law, used for essential goods including medical supplies.
• Mining: Legal with license and asset/s sold to Central Bank; raids on unlicensed for electricity use strain.
• DeFi: Unlicensed, low adoption from internet censorship and legal reasons.
• NFTs: Unregulated market, limited activity, some local blockchain based art projects.
• Impact From Sanctions: Promotes use of crypto for trade; limits access to the global exchange.
• Exchanges: Nobitex and Wallex are the primary local exchanges.
• P2P Trading: Some on Telegram groups, cash or bank transfers.
• OTC Brokers: They help with huge trade deals.
• VPN: Good for surreptitiously getting access to decentralized exchange sites such as Uniswap.

Conclusion

Iran’s cryptocurrency system is specially designed for its sanctions- crippled economy, allowing trade under a close watch in local markets. The 2018 ban and 2022 ban lift represent a state-centric approach, with local exchanges including but not limited to Nobitex and peer-to-peer trading through Telegram taking precedence over global restrictions. DeFi and NFTs hit barriers but local NFT projects show potential for culture. Moreover, not only does Iran hold a strategic take on crypto for critical imports, and is testing the concept of a crypto rial – this is indicative of its novel but stifling landscape, where geopolitical use cases are placed ahead of retail innovation.