Crypto Regulation in Iran: What’s Banned, What’s Hidden, and How It Compares

When it comes to crypto regulation in Iran, the Iranian government’s official stance on cryptocurrency is a strict ban, but in practice, digital assets are deeply embedded in daily life. Also known as crypto censorship in Iran, this contradiction isn’t unique—it’s a survival tactic for millions. The Central Bank of Iran declared cryptocurrencies illegal in 2018, calling them a threat to the national currency and financial system. But while banks and official institutions are barred from touching Bitcoin or USDT, ordinary Iranians use them to buy food, pay for medicine, and send money abroad. This isn’t a fringe movement—it’s a lifeline.

Why does this happen? Because of hyperinflation and crippling U.S. sanctions. The Iranian rial lost over 90% of its value against the dollar in the last decade. When your savings vanish overnight, Bitcoin becomes more reliable than your local bank. Iranians trade crypto through peer-to-peer networks, use local exchanges that operate in gray zones, and even mine Bitcoin using cheap government-subsidized electricity. This isn’t rebellion—it’s economics. The same pattern shows up in Venezuela and Afghanistan, where crypto isn’t a tech trend—it’s a necessity. Bitcoin, a decentralized digital currency that operates without government control. Also known as digital gold, it’s the most used crypto in Iran because it’s easy to store, hard to seize, and globally accepted. USDT, a stablecoin pegged to the U.S. dollar. Also known as Tether, it’s the go-to for Iranians who need to preserve value without exposure to rial volatility. Even though the government blocks access to major exchanges like Binance and Coinbase, Iranians find ways—through VPNs, local traders, or Telegram groups—to get in.

What about mining? Iran used to be one of the top five Bitcoin mining countries, thanks to low electricity costs. But in 2021, the government cracked down hard, shutting down thousands of mining farms and arresting operators. Yet mining didn’t disappear—it went underground. Small-scale miners now run rigs in basements and garages, often powered by illegal connections. The state can’t stop it because it can’t even track every device. Meanwhile, other countries like Russia and China have taken similar paths: ban it publicly, ignore it privately. What’s clear is that crypto regulation in Iran isn’t about technology—it’s about control. And when people have no other options, control fails.

What you’ll find in the posts below are real stories and breakdowns of how crypto survives under repression. From how Venezuelans use USDT to buy groceries, to how Afghanistan’s women trade Bitcoin to escape poverty, these aren’t abstract theories—they’re survival guides. You’ll see how low-liquidity tokens like XTT or SKICAT are nothing compared to the real-world risks Iranians take just to hold value. This isn’t about speculation. It’s about freedom.