Iran's Central Bank has eased currency controls, allowing cryptocurrencies like USDT for international trade amid ongoing U.S. sanctions.
The Central Bank of Iran has quietly relaxed its currency regulations, permitting the use of cryptocurrencies like USDT in international trade. This change, reported by Financial Times, is a response to increasing pressures from U.S. sanctions and military conflicts affecting Iran’s economy.
The central bank is now promoting the repatriation of foreign earnings through various means, acknowledging the challenges faced by exporters. A company executive close to the government remarked, "Receiving cryptocurrency as payment for exports has now become completely routine."
Exporters Gain Flexibility in Currency Transactions
Previously, exporters were mandated to convert a significant portion of their foreign earnings back into Iranian currency through state-controlled platforms, often at unfavorable rates. This led many to keep their funds undeclared or stored abroad. Reports indicated that over 20,000 individuals and companies faced unfulfilled obligations to return approximately €94 billion in export revenues.
Now, however, companies can freely exchange currency on the open market, utilizing export revenues for imports and engaging in cross-border transactions via local crypto platforms. A steel exporter highlighted the newfound ability to directly use foreign earnings for purchasing necessary materials, stating that the previous requirement to sell at a lower state rate was illogical.
Despite the relaxed regulations, authorities continue to enforce the return of already accumulated foreign earnings, with investigations launched against 219 individuals and firms for €23.5 billion in unreturned funds.
USDT Dominates Cross-Border Transactions
In cross-border dealings, USDT has emerged as the primary cryptocurrency, favored for its dollar peg and ability to bypass traditional banking channels. Ali Reza Bozorgmehri from the Iran Digital Transformation Association confirmed that the Central Bank has eased its oversight of crypto exchanges, moving away from strict regulatory enforcement.
According to TRM Labs, around $10 billion in digital assets flowed through Iranian-related addresses in 2025, showing a slight decrease from the previous year but indicating structural demand rather than mere speculation. However, the current scale of Iranian exchanges is insufficient to fully meet the country’s foreign trade requirements.
Increased US Pressure on Iranian Crypto Activities
The easing of regulations comes amid intensified U.S. sanctions aimed at Iran's digital asset sector, with the U.S. Treasury warning that cryptocurrencies are increasingly being used by the Iranian regime to evade sanctions. The Treasury has indicated potential restrictions on foreign entities involved in Iran's crypto sector.
In June, the U.S. sanctioned four leading Iranian crypto exchanges, which collectively accounted for a significant portion of the country’s cryptocurrency activity. Additionally, analysts revealed that the Central Bank of Iran had purchased over $507 million in USDT, possibly to stabilize the rial amid limited access to conventional currency reserves.
Political economist Saeed Leylaz suggested that as traditional financial pathways diminish, the reliance on digital assets will grow, stating, "The more the economy goes underground, the greater the need for cryptocurrencies."
