Is Crypto Regulated in Iran? The Real Rules in 2025

Iran doesn’t ban cryptocurrency - but it doesn’t let you trade it freely either. If you think crypto in Iran is like Bitcoin in the U.S. or Ethereum in Germany, you’re wrong. The rules here are controlled, monitored, and constantly shifting. What’s legal today might be blocked tomorrow. And if you’re trying to use crypto to protect your savings from inflation, you’re walking a tightrope with the government watching every step.

It’s Not Illegal - But It’s Heavily Controlled

Cryptocurrency isn’t outlawed in Iran. People still buy, sell, and mine Bitcoin and Ethereum. But the government doesn’t treat it like money. It treats it like a resource to be managed - like oil or wheat. Since 2019, Iranian miners have been forced to sell their newly mined coins directly to the Central Bank of Iran (CBI). The CBI then decides what to do with them - often using them for international trade to bypass sanctions. That means if you mine Bitcoin in Tehran, you don’t get to keep it. You get paid in rials - at a rate set by the government, not the market.

And if you want to trade crypto on an exchange? You can’t use your local bank account. The CBI shut down all direct cryptocurrency-to-rial payment channels in December 2024. That means no more linking your Iranian bank card to Nobitex or other local exchanges. To buy crypto, you now need to go through government-approved gateways - and those gateways report every transaction to the central bank. There’s no privacy. No anonymity. Just a digital trail the state can follow anytime.

The State Has Its Own Crypto - And It’s Not Bitcoin

Iran isn’t just regulating foreign crypto. It’s creating its own. Meet the Rial Currency, Iran’s official central bank digital currency (CBDC). Unlike Bitcoin or Ethereum, this isn’t decentralized. It’s not mined. It’s not open-source. It’s just a digital version of the Iranian rial - controlled entirely by the government. The CBI launched it to replace cash for government payments and remittances. But they’re planning to expand it to everyday shopping by mid-2026.

Here’s the twist: while the government pushes its own digital rial, it bans the use of foreign-mined cryptocurrencies for domestic transactions. You can’t use Bitcoin to pay for groceries in Tehran. You can’t use Ethereum to buy a phone online. But you can still use them to trade internationally - as long as the CBI approves the transaction. It’s a double standard: crypto for sanctions evasion, but not for daily life.

Stablecoins Are Now Limited - And Risky

For years, Iranians turned to stablecoins like Tether (USDT) to protect their savings from hyperinflation. The rial lost over 70% of its value since 2020. USDT became a lifeline. But in September 2025, the CBI dropped a new rule: no individual or business can hold more than $10,000 in stablecoins at once. And you can only buy up to $5,000 per year. Violate this? Your account gets frozen.

Then came the July 2025 blow: Tether froze 42 Iranian-linked addresses - over half of them tied to Nobitex, Iran’s biggest exchange. Thousands of users lost access to their funds overnight. The CBI didn’t stop it. It didn’t even protest. Instead, they quietly pushed users toward DAI, a decentralized stablecoin on the Polygon network. Now, DAI makes up 35% of Iranian stablecoin use - and that number is expected to hit 65% by the end of 2026.

Why DAI? Because it’s not controlled by a U.S. company. It runs on code, not a corporate headquarters. But even that’s not safe. The CBI can still track your wallet if you use it on a government-approved exchange. And if you use a VPN to access foreign platforms? You’re breaking the law.

Advertising Crypto Is Now a Crime

In February 2025, Iran banned all cryptocurrency advertising. No more YouTube videos explaining how to buy Bitcoin. No more Instagram posts about mining rigs. No more billboards for Nobitex. Even social media influencers got warnings. The government doesn’t want people talking about crypto - not because it’s dangerous, but because it’s too popular. The goal? Reduce public interest. Reduce demand. Reduce pressure on the rial.

But the ban backfired. Instead of disappearing, crypto discussions moved to encrypted apps like Telegram and Signal. Reddit threads about Iran’s crypto rules now get thousands of replies. Users share tips on how to bypass the government API, how to use DAI safely, and how to avoid getting flagged. The more the state tries to silence it, the more it spreads underground.

Taxes Are Now on the Table

In August 2025, Iran introduced its first-ever capital gains tax on cryptocurrency profits. If you bought Bitcoin for 50 million rials and sold it for 120 million, you now owe 15% tax on the profit. This isn’t just about revenue - it’s about legitimacy. The government is saying: we don’t care if you trade crypto, but if you make money, we want our cut.

The Ministry of Economic Affairs and Finance plans to link crypto tax reporting to existing financial systems by mid-2026. That means your exchange transactions will be cross-checked with your income tax filings. No hiding. No loopholes. If you make a profit, they’ll find it.

What Happens If You Break the Rules?

Technically, you won’t go to jail for owning Bitcoin. But if you trade without a license, use unauthorized exchanges, or mine without permission, you risk fines, account freezes, or even having your internet access cut. In 2024, over 1,200 people were investigated for illegal mining. Many had their electricity disconnected - not because they used too much power, but because they didn’t report it to the government.

Using a VPN to access Binance or Kraken? That’s a gray area. The government doesn’t prosecute individuals for using VPNs - yet. But if they catch you trading through an unapproved platform and you’re linked to a sanctioned entity? You’re in trouble. The Israeli National Bureau for Counter Terrorist Financing has documented transactions between Iranian exchanges and IRGC-linked wallets. If your wallet shows up on those lists, you’re not just breaking rules - you’re on a watchlist.

The Market Is Shrinking - But Still Alive

Iran’s crypto market was once one of the biggest in the Middle East. Daily trading hit $160 million in 2024. By mid-2025, that dropped 11%. Why? Because the rules made it harder. The $10,000 stablecoin cap. The blocked payment channels. The frozen Tether accounts. The tax reporting. The advertising ban. People are still trading - but they’re doing it slower, smaller, and more cautiously.

Chainalysis estimates that 60% of trading now happens outside government systems - through VPNs, peer-to-peer networks, and private wallets. But that’s risky. If you’re caught, you can’t claim ignorance. The government says: if you’re using crypto, you’re responsible for knowing the rules.

What’s Next?

The CBI is working on expanding its digital rial to retail stores and public services. They’re also cracking down harder on unauthorized mining - especially in residential areas where power outages have become common. By 2026, every mining rig will need to be registered. Every wallet will need to be linked to a national ID. Every transaction will be logged.

Iran’s crypto policy isn’t about stopping crypto. It’s about controlling it. The government wants to use crypto to survive sanctions - but not let citizens use it to escape the rial. It’s a paradox. And it’s not going away. As long as U.S. sanctions stay in place, Iran will keep using crypto as a tool. But for ordinary people? It’s becoming harder to use - and riskier to own.

If you’re in Iran and you’re holding crypto, you’re not just investing in Bitcoin or Ethereum. You’re betting on a system that can change overnight. The rules aren’t written in stone. They’re written in political pressure, economic survival, and international conflict. And right now, the government holds all the cards.