Iran accelerates cryptocurrency use in 2025 as the IRGC consolidates its financial influence

Source: CritpoTendencia Original Title: Iran Accelerates Cryptocurrency Use in 2025 as IRGC Consolidates Financial Influence Original Link: During 2025, cryptocurrency usage in Iran expanded significantly, reaching a transaction volume exceeding $7.780 billion.

According to a report by forensic firm Chainalysis, this rebound is due to both internal economic pressures and the increasing influence of the Islamic Revolutionary Guard Corps (IRGC) and the persistent geopolitical instability in the region.

The IRGC and the Expansion of Iran’s Crypto Economy

According to Chainalysis, wallets linked to the IRGC accounted for nearly 50% of the total value received during the last quarter of 2025. This share has steadily grown over time as the group has expanded its economic influence through blockchain technology.

In this context, the IRGC’s use of cryptocurrencies has facilitated evasion of international sanctions by enabling financial transactions that are unfeasible within the traditional banking system.

At the same time, the report emphasizes that cryptocurrencies have also served as a financial lifeline for part of the Iranian population affected by high inflation, rial depreciation, and constant external sanctions pressure.

Activity Peaks and Movements During Protests

In parallel, Chainalysis observes that crypto activity in Iran tends to register significant peaks during periods of internal and regional tension, such as episodes of domestic violence, geopolitical conflicts, or cyberattacks against financial infrastructure.

During mass protests, notable increases in BTC transfers to personal wallets were detected, amid growing sociopolitical instability.

This behavior is mainly reflected in withdrawals from Iranian exchanges to uncredited wallets, a dynamic that reinforces the role of cryptocurrencies as a financial refuge in scenarios of prolonged uncertainty.

Cryptocurrencies Under Regulatory Scrutiny

In this scenario, the expansion of cryptocurrency use by Iranian state actors has not gone unnoticed by regulators and international analysis firms.

Globally, data collected by Chainalysis measures the magnitude of the phenomenon. During 2025, addresses linked to illicit activities received at least $154.000 million, driven partly by a nearly 700% increase in funds directed to sanctioned entities.

Additionally, investigations by TRM Labs and reports from the Financial Times point to the use of international platforms to process IRGC funds and the possible use of cryptocurrencies to evade sanctions, even through arms sales.

Together, these findings highlight the growing regulatory challenges and the need for stricter oversight of the crypto economy when operating in environments marked by geopolitical tensions and international sanctions.