Crypto Exchange Restrictions for Iranian Citizens in 2025: What You Need to Know

For Iranian citizens, accessing cryptocurrency exchanges in 2025 isn’t just difficult-it’s a high-stakes game of timing, tools, and trust. What used to be a relatively open digital financial space has turned into a tightly controlled system with strict rules, hidden dangers, and sudden shutdowns. The government doesn’t ban crypto outright, but it makes using it feel like walking through a minefield.

Payment Gateways Are Dead

In January 2025, the Central Bank of Iran shut down every rial payment channel connected to local crypto exchanges. That meant you couldn’t deposit or withdraw Iranian rials from platforms like Nobitex, Bitrue, or Hamyar. Even if you had a wallet full of Bitcoin or USDT, you couldn’t cash out to pay bills, buy groceries, or send money to family. The official reason? Tax evasion. Exchanges were moving billions in transactions without reporting a single dollar in taxes. The government didn’t want to stop crypto-it wanted to control it and take its cut.

The Nobitex Hack Changed Everything

On June 18, 2025, Nobitex, Iran’s biggest exchange with over 11 million users, got hacked. More than $90 million vanished. The attack wasn’t just a technical failure-it was political. The Iranian government didn’t blame hackers. It blamed the system. Within hours, new rules dropped: all crypto trading was banned between 8:00 PM and 10:00 AM local time. That left only a 14-hour window each day to buy, sell, or move crypto. No late-night trades. No weekend rushes. No emergency moves. If you missed your window, you were stuck.

The impact was immediate. USDT prices on Iranian exchanges jumped to over 12,000 Toman-far above the global rate. People panicked. They rushed to trade before the curfew. Others sold everything, fearing more losses.

Tether Frozen $100 Million in Iranian Wallets

On July 2, 2025, Tether-the company behind USDT-froze 42 cryptocurrency addresses linked to Iranian users. Most of these wallets had connections to Nobitex. But the deeper issue? Some of these addresses were flagged by Israeli intelligence as tied to Iran’s Islamic Revolutionary Guard Corps (IRGC). Tether didn’t care if you were a student or a shop owner. If your wallet touched a flagged address, your funds were locked.

This wasn’t just about crime. It was about fear. International companies didn’t want to risk U.S. sanctions. So they cut off Iranians-even those with no ties to the government. The result? A collapse in trust. People stopped using USDT. They started looking for alternatives.

DAI on Polygon Became the New Lifeline

By August 2025, Iranian crypto users had found a workaround: DAI, a decentralized stablecoin built on the Polygon network. Unlike USDT, DAI isn’t controlled by a single company. It’s governed by code, not a boardroom. And Polygon doesn’t freeze accounts the way Tether does.

Crypto influencers, local forums, and even some government-aligned channels pushed DAI swaps. Users learned how to bridge their USDT to Polygon, swap it for DAI, and store it in non-custodial wallets like MetaMask. It wasn’t easy. It required learning new tools, paying gas fees, and trusting strangers on Telegram. But for many, it was the only way to keep access to stable value.

Now There’s a Tax on Crypto Profits

In August 2025, Iran passed the Law on Taxation of Speculation and Profiteering. For the first time, trading crypto became a taxable event. If you bought Bitcoin at 50 million Toman and sold it for 70 million, you owed taxes on the 20 million profit. The same rule applied to gold, real estate, and foreign currency.

This wasn’t just about revenue. It was a signal: the government sees crypto as real money now. And like real money, it wants to track it, control it, and tax it. The tax system is still being rolled out, but early reports show that exchanges are now required to report user trades to tax authorities. If you’re trading without reporting, you’re risking fines-or worse.

U.S. Sanctions Hit Iran’s Crypto Shadow Network

In September 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a $600 million Iranian shadow banking network. Among the targets: Arash Estaki Alivand, a financial facilitator who used Ethereum and Tron wallets to launder over $100 million in oil profits through international front companies.

This wasn’t about ordinary users. But it made things worse for them. Banks and crypto platforms worldwide tightened filters. Any transaction that looked even slightly Iranian got flagged. Wallets that had never touched the IRGC got frozen because they shared a blockchain address with one that did. The collateral damage was massive.

What’s Legal? What’s Not?

Here’s the confusing part: mining is still legal. Iran has some of the cheapest electricity in the world, and thousands of people run mining rigs in their homes. But using crypto to pay for anything? Illegal. Sending crypto abroad? Illegal. Trading on international exchanges like Binance or Kraken? Technically illegal, but many still do it using VPNs.

The Central Bank of Iran holds all the power. They can shut down an exchange one day and demand a license the next. There are no public rules. No clear guidelines. Just sudden changes that catch people off guard.

Who’s Still Using Crypto in Iran?

Despite all the restrictions, crypto usage hasn’t disappeared. It’s just changed shape.

- Students use DAI to pay for online courses and software subscriptions.

- Freelancers get paid in crypto because international wire transfers are blocked.

- Families send remittances through peer-to-peer networks instead of banks.

- Small businesses use crypto to buy parts and tools from overseas suppliers.

Inflation is still over 40%. The rial keeps losing value. People don’t trust the banking system. Crypto isn’t a luxury-it’s survival.

What’s Next?

Experts say the cat-and-mouse game will keep going. The government will keep tightening. Users will keep adapting. More stablecoins will emerge. More decentralized tools will be used. More wallets will be frozen.

The future of crypto in Iran won’t be decided by technology. It’ll be decided by politics-by how much pressure the U.S. and allies keep on Iran, and how badly the Iranian people need an alternative to their failing economy.

Right now, the only thing certain is this: if you’re an Iranian citizen trying to use crypto in 2025, you’re not just investing in digital assets. You’re navigating a political battlefield-with your savings on the line.