Iran relaxes financial regulations to leverage cryptocurrency amid US sanctions: Report
The Iranian central bank has loosened restrictions on currency transactions, allowing companies greater flexibility to utilize Bitcoin and USDT for international commerce as US sanctions intensify.
The central bank of Iran has loosened restrictions on foreign currency transactions in an effort to incentivize businesses to repatriate their international revenues, including through digital assets, as US sanctions continue to tighten.
According to a Wednesday report from the Financial Times, this relaxation of controls includes permitting the use of Tether's USDt (USDT) alongside Bitcoin (BTC) for settling international trade transactions via cryptocurrency exchanges operating in Iran.
Additionally, companies that export goods can now utilize their foreign earnings to directly fund imports without being required to first convert their foreign currency holdings through the government-controlled exchange platform at officially mandated rates, according to the report.
Cointelegraph reached out to the Central Bank of Iran for comment but did not receive a response.
Last June, TRM Labs, a blockchain analytics firm, published findings revealing over $3.8 billion in cryptocurrency flows between the exchange platform CoinEx and Iranian entities subject to sanctions throughout a period exceeding seven years. CoinEx refuted any commercial ties with the Iranian government or exchanges based in Iran and stated it had not provided funding channels to any sanctioned entities.
During the first week of June, the US Treasury Department imposed sanctions on four cryptocurrency exchanges based in Iran as part of its "Economic Fury" initiative. In the days preceding these sanctions, Treasury Secretary Scott Bessent announced that the US had confiscated approximately $1 billion in cryptocurrency assets belonging to Iran.
On July 14, Bessent disclosed that US authorities had initiated a freeze affecting more than $130 million in digital currency held in cryptocurrency wallets associated with Iran's central bank.