Iran requires payment for passage through the Strait of Hormuz in cryptocurrency. Experts deem this scheme "practically unfeasible" through legal channels, according to Bloomberg.
However, the initiative has revealed a vast infrastructure for circumventing sanctions. Last year alone, the IRGC processed over $3 billion through digital assets. The total value of the country's cryptocurrency ecosystem reached $7.8 billion.
According to analysts at TRM Labs, Tehran allows the use of virtual currencies through a network of local intermediaries. This is part of a system aimed at ensuring state control over cryptocurrency flows.
For international transfers, Iran relies on intermediaries. For instance, in January, the U.S. Treasury imposed sanctions on two British exchanges for assisting the IRGC in conducting stablecoin operations worth around $1 billion. This was an attempt to obscure the payer's connection to a sanctioned entity.
Charging a fee through an intermediary linked to the IRGC would strip participants of such cover. Consequently, all difficulties fall on shipping companies trying to navigate through Hormuz.
Challenges for Shipping Companies
Many firms using the strait are registered in the West and are subject to strict regulatory requirements.
"Shipping companies are already under tight scrutiny—they operate in a high-risk sector. If there’s a risk that a transaction falls under sanctions, no dealer will take it on," explained Jake Ostrovsky from Wintermute.
Even operators accustomed to gray schemes for evading sanctions will face challenges. They typically turn to unregulated offshore brokers who exchange cash for cryptocurrency without questions. However, the transparency of blockchain complicates matters.
"Whether it’s stablecoins or Bitcoin, all of it is in public ledgers. Eventually, this transfer will be seen," noted senior derivatives trader at FalconX, Bohan Jiang.
GSR co-founder Rich Rosenblum pointed out that it all depends on the specific oil carrier. Companies from the so-called shadow fleet are already actively using Bitcoin.
For traditional operators, the only way to acquire cryptocurrency is to buy it on an exchange or from an over-the-counter dealer. However, this presents a problem: most regulated platforms will flag and block a transfer upon discovering a connection to Iran.
A standard supertanker carrying 2 million barrels of oil might incur a cost of about $2 million. Traders say this amount could easily be processed through an exchange or OTC dealer if sanctions risks are excluded.
"But most exchanges won’t want their clients sending money to Iran. Technically, they could buy cryptocurrency, withdraw it from the exchange, and then send it from their personal wallet," noted Rosenblum.
In this case, due to blockchain transparency, U.S. intelligence agencies would quickly trace the transaction and blacklist the tanker owner or intermediary with OFAC.
What’s Next?
U.S. President Donald Trump stated he is considering a revenue-sharing arrangement for passage through the strait. If an agreement is reached, the payment process could become simpler.
At the same time, Rosenblum believes that in such a scenario, OFAC and the Department of Energy would need to create a separate payment system for shipping companies.
Ari Redbord from TRM Labs emphasized that Iran has always sought ways to circumvent sanctions and escape the American financial system. This task has become even more pressing since the conflict began.
"This is part of a broader picture. Russia and China, along with other sanctioned entities, are also looking for alternative payment rails to avoid dependence on the West," he added.
Recall that in late January, Elliptic specialists discovered that Iran's central bank purchased USDT worth $507 million.