Tehran leverages digital assets to bypass international restrictions
Iran is reportedly exploring the use of cryptocurrency payments for military exports, including ballistic missiles, warships, and advanced weaponry, as a method to circumvent Western sanctions. This move marks one of the first public instances of a nation-state openly offering digital currencies for defense contracts.
The Ministry of Defence Export Center (Mindex) confirmed its readiness to negotiate contracts with payment in cryptocurrencies, Iranian rials, or barter arrangements. The state-run entity maintains client relationships with 35 countries and showcases a wide range of products, from missiles and rockets to hovercraft and ammunition. By accepting digital currencies, Iran aims to maintain international arms trade despite heavy financial restrictions.
Western powers, including the U.S., UK, and EU, have imposed strict sanctions targeting Iran’s nuclear and missile programs, as well as its access to global banking. These restrictions have led Iran to increasingly rely on barter trade and cryptocurrencies. In a related development, U.S. authorities identified Iranian nationals facilitating over $100 million in bitcoin and other crypto transactions to process oil sales between 2023 and 2025, highlighting a broader “shadow network” used to bypass sanctions.
Mindex reassures clients that contracts can be fulfilled despite international restrictions. The development underscores the growing role of digital assets in enabling countries under sanctions to sustain trade and raises new questions about global crypto regulation and enforcement.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.