Iranians ‘flocked’ to crypto as rial collapses and restrictions grow

Crypto adoption in Iran surged in 2024 as citizens sought to escape economic turmoil and government-imposed financial restrictions.

According to Chainalysis, Iranian crypto outflows reached $4.18 billion — up 70% year-over-year — as trust in the financial system eroded and sanctions pressure mounted.

Iran has long been isolated from the global banking system due to U.S. sanctions, particularly after Washington withdrew from the 2015 nuclear deal in 2018. The Iranian rial has lost nearly 90% of its value since then, with inflation hovering between 40–50%.

In December, the government halted withdrawals from local crypto exchanges in an effort to curb capital flight as the rial hit record lows.

Iranian financial security

While Iran’s crypto activity is often linked to sanctions evasion, Chainalysis found that many outflows were driven by individuals seeking financial security rather than illicit activity. 

Bitcoin (BTC), in particular, saw spikes in movement during geopolitical flashpoints. For example, increased outflows were recorded in April and October 2024, coinciding with heightened tensions involving Iran and Israel.

The trend extends beyond Iran. Globally, Bitcoin has become a financial refuge during crises, offering censorship-resistant transactions and cross-border mobility. 

However, compliance efforts are limiting Iran’s access to crypto platforms. Between 2022 and 2024, exchange exposure to Iranian services dropped by 23%, with transactions under $1,000 seeing the steepest decline.

The U.S. ramped up sanctions enforcement in 2025 with the introduction of the National Security Presidential Memorandum, targeting Iranian-linked financial networks. 

With Iran deepening its economic ties with Russia and remaining on the FATF blacklist, cryptocurrency is likely to remain a key alternative for Iranians navigating financial restrictions, according to Chainalysis.