The U.S. Treasury Department has intensified its pressure on Iran by expanding the sanctions framework to include the digital assets sector, in a move that, according to the ministry, is based on the use of more than $100 million in cryptocurrency payments to facilitate oil sales linked to Tehran.
The Office of Foreign Assets Control (OFAC) announced a new package of sanctions affecting digital asset sectors, technology, gold, aviation and shipping, as well as around 60 entities, individuals, and a vessel, which the ministry said were linked to nuclear, missile, cyber, and oil networks.
Tightening oversight of the cryptocurrency sector
Under the new decision, OFAC has been given broader grounds to impose sanctions on foreign individuals and companies that operate within Iran’s digital assets sector or provide related services.
The Treasury Department believes Iran is increasingly relying on cryptocurrencies as a way to circumvent sanctions, including transactions related to Iran’s Islamic Revolutionary Guard Corps and government officials.
The ministry also accused Ivan Obukhov, an intermediary residing in the UAE, of processing more than $100 million in cryptocurrency payments since 2023, with the aim of facilitating oil sales on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC-Quds Force). It also imposed sanctions on his UAE-registered company, Foscom FZE.
🌐 Ongoing escalation against encryption networks linked to Iran
This step is part of a series of US actions against Iran-linked platforms and digital wallets.
In January, OFAC imposed sanctions on the UK-registered platforms Zedcex and Zedxion.
On June 3, the Treasury Department targeted four Iranian platforms, including Nobitex, the country’s largest cryptocurrency platform.
On August 7, OFAC imposed sanctions on the platforms Shelbit and Aban Tether, accusing them of facilitating digital-asset transactions totaling about $5 million linked to Iran.
The Treasury Department indicates that the latest measures differ from previous sanctions targeting specific platforms, as they provide a broader framework for targeting entities operating in Iran’s digital assets sector or that provide services to it.
What does that mean for cryptocurrency platforms?
Cryptocurrency exchanges and digital asset service providers may face increased scrutiny in compliance operations, especially when dealing with counterparties or payment networks linked to Iran or to entities listed on sanctions lists.
Assets linked to the United States and owned by parties subject to sanctions may also be frozen, while foreign financial institutions that facilitate large transactions for those entities may face restrictions on access to the US financial system.
Summary
The US move represents a significant escalation in oversight of the use of cryptocurrencies as a potential means of evading sanctions.
As for the crypto market, the biggest impact may appear in the strengthening of KYC/AML procedures, monitoring cross-border flows, and increased scrutiny of platforms and digital asset service providers associated with high-risk regions or entities.