Iranians are increasingly purchasing Bitcoin and transferring it to self-custodial cryptocurrency wallets.
The move hedges against inflation while avoiding some restrictions.
Iran is one of the other sanctioned countries increasing the adoption of Bitcoin.
Iranian citizens are buying large quantities of Bitcoin (BTC) and directing it to their self-custodial wallets.
According to a 2026 report by blockchain analysis firm Chainalysis, Iran’s cryptosystem valuation rose from $7.4 billion in 2024 to $7.8 billion in 2025.
The report also highlighted that users withdrew approximately $10.3 million worth of cryptocurrencies from major exchanges in Iran to their crypto wallets in the 48 hours following the US-Israel preemptive strike against Iran. Within minutes of the attack, Nobitex, the country’s largest exchange, saw a staggering 700% spike in the amount of money leaked.
This coincided with a steady upward trend in Bitcoin outflows before and after the government-imposed internet blackout on January 8th.
Source: Chainalysis
Bitcoin becomes an economic lifeboat for Iranians
Bitcoin has become a financial haven primarily for Iranians because its long-term value acts as an inflation hedge. Iran’s home currency, the rial, has lost 90% of its value since 2018. The country’s inflation rate also rose to 40-50%, the highest since World War II.
Furthermore, Bitcoins in self-custodial wallets are not subject to state/exchange restrictions or security vulnerabilities. In mid-2025, Nobitex suffered a $90 million hack, but Tether continues to blacklist addresses and freeze USDT funds from alleged Iranian co-conspirators.
Meanwhile, the country’s central bank (CBI) has suspended the exchange of real and cryptocurrencies several times to prevent further devaluation of the real. The bank has recently become more flexible in handling cryptocurrencies, subject to real-time user monitoring.
Another reason for the move is that a government-imposed internet blackout in January rendered the exchange’s cryptocurrencies useless. Furthermore, the digital nature of cryptocurrencies makes them very portable for people who anticipate fleeing the country.
Most importantly, cryptocurrencies allow cross-border transfers despite sanctions such as the SWIFT bank disconnection.
Researchers estimate that 15 million Iranians (20% of the population) are currently involved in or using Bitcoin or other cryptocurrencies.
Iran joins the list of countries subject to sanctions due to the introduction of Bitcoin
Iran, Russia, Venezuela, and North Korea are all sanctioned countries and are increasingly turning to cryptocurrencies to circumvent international trade restrictions.
Cryptocurrency firm Binance and World Liberty Financial (WLFI), ironically backed by President Trump, are currently facing a Senate investigation related to Iran-related flows.
