Iran's crypto ecosystem has seen significant growth, reaching a valuation of $7.78 billion in 2025, according to a recent report by blockchain analytics firm Chainalysis. This surge in activity is closely linked to the country's political and economic climate, with cryptocurrency serving as both a safe haven for citizens and a tool for state-linked entities navigating sanctions.

The Chainalysis report highlights three key trends shaping Iran's crypto landscape:

• Correlation with Political Events: Iranian cryptocurrency activity demonstrates spikes that coincide with major domestic and geopolitical events. Examples include the Kerman bombings in January 2024.
• IRGC Dominance: The Islamic Revolutionary Guard Corps (IRGC) has significantly increased its involvement in the crypto economy. By the fourth quarter of 2025, on-chain activity linked to the IRGC represented approximately 50% of Iran's total crypto ecosystem. In 2024, funds received by IRGC-associated addresses reached over $2 billion, spiking to more than $3 billion in 2025. This trend mirrors the IRGC's expanding control over Iran's broader economy and political institutions.
• Bitcoin as a Safe Haven: During recent mass protests and internet blackouts that began in late December 2025, Iranians have significantly increased withdrawals of Bitcoin to personal wallets. This suggests a "flight to safety" as citizens seek to preserve their wealth amid currency collapse and political instability.

For Iranian citizens, facing inflation rates of 40-50% and a 90% drop in the Iranian Rial's value since 2018, cryptocurrency represents more than just a way to circumvent sanctions. It's viewed as a means to opt out of a failing financial system controlled by what many perceive as a desperate regime. While Bitcoin appears to be the preferred safe haven asset during times of crisis, stablecoins are also used for personal remittances due to their ease of use, low cost, and stability, especially during hyperinflation.

The rise of cryptocurrency in Iran also presents challenges. Nobitex, the country's largest cryptocurrency exchange, was targeted in an exploit in June 2025, resulting in the loss of over $90 million in assets. A pro-Israel group claimed responsibility, citing it as a politically motivated attack. Following the Nobitex exploit, the Central Bank of Iran reportedly directed domestic crypto exchanges to limit operating hours, signaling increased government oversight.

Despite these challenges, the Iranian crypto ecosystem continues to grow, driven by a combination of economic necessity, political instability, and the desire to bypass sanctions. The IRGC's increasing involvement and the use of Bitcoin as a safe haven highlight the complex and evolving role of cryptocurrency in Iran.