Are Crypto Payments Allowed in Iran? What You Need to Know in 2025

Can you use Bitcoin or Ethereum to pay for goods in Iran? The short answer is: not really - not the way you’d use cash or a credit card. But it’s not that simple. Iran doesn’t outright ban cryptocurrency. Instead, it’s built a system where the government watches everything, controls the flow, and lets you trade only if you play by their rules.

What’s Actually Allowed?

Cryptocurrency mining is legal in Iran - and it’s big. The country accounts for about 4.5% of global Bitcoin mining, thanks to cheap electricity. But here’s the catch: miners must get a license from the Ministry of Industry, Mine and Trade. They’re forced to sell their coins directly to the Central Bank of Iran at fixed prices. Many miners can’t afford the high electricity rates set by the government, so they go underground. In late 2024, rolling blackouts hit cities like Tehran and Isfahan, and officials blamed illegal mining for draining the power grid.

So mining? Allowed - but tightly controlled. Payments? Not so much.

Why Can’t You Just Pay With Crypto?

On December 27, 2024, Iran’s Central Bank shut down all online gateways that let people convert rials to crypto - and vice versa. That meant apps like Nobitex couldn’t accept bank transfers anymore. No more buying Bitcoin with your salary. No more paying a freelancer in Ethereum.

By January 2025, the government reopened some payment channels - but only through their own system. Every transaction now has to go through a government API. That means the Central Bank sees every trade, every wallet address, every amount. It’s not about stopping crypto. It’s about owning it.

Peer-to-peer crypto payments - like sending Bitcoin to a shop owner for groceries - are effectively banned. No licensed exchange will allow it. No bank will process it. And if you try to do it privately, you’re risking fines, account freezes, or worse.

Advertising Is Completely Banned

In February 2025, Iran went further. It outlawed all cryptocurrency advertising - online and offline. No more YouTube videos promoting Bitcoin. No more billboards for crypto exchanges. No more Instagram posts telling people to “buy now.” This isn’t just about reducing speculation. It’s about keeping crypto out of public view. The government wants people to know crypto exists, but not to think it’s normal, safe, or worth trusting.

What About Foreign Exchanges?

Many Iranians still use foreign platforms like Binance or Kraken. But to do that, they need a VPN. That’s not illegal - but it’s risky. The government doesn’t have direct control over these platforms, but they can still track users through bank records, IP logs, or even social media activity. In July 2025, Tether froze 42 Iranian-linked addresses - many tied to Nobitex - in a move that sent shockwaves through Iran’s crypto community. It showed how easily international players can cut off access when pressured by U.S. sanctions.

Iranian exchanges are also banned from using foreign-mined coins for domestic transactions. That means even if you buy Bitcoin on a foreign exchange, you can’t legally use it to pay someone inside Iran. The only legal path is through government-approved platforms - and even then, only for conversion to rials, not spending.

The Digital Rial Is the Real Goal

Iran isn’t trying to become a crypto haven. It’s trying to replace crypto with something it controls: the digital rial. This isn’t Bitcoin. It’s not decentralized. It’s not mined. It’s a central bank digital currency (CBDC) - essentially, electronic cash issued by the Central Bank of Iran. You can’t buy it. You can’t trade it. You can only receive it through approved banks or government apps.

The digital rial is being tested on Kish Island, a free-trade zone. The goal? Reduce reliance on the U.S. dollar and give the government total control over every transaction. If you pay with digital rial, the state knows exactly when, where, and how you spent it. That’s the opposite of crypto’s original promise - but perfect for a government that fears losing monetary control.

Why Do Iranians Still Use Crypto?

Despite all the restrictions, Iranians still trade crypto - because the rial keeps falling. In 2024, inflation hit over 50%. Savings vanished. Salaries couldn’t keep up. Crypto became a lifeline. Even with government surveillance, people use it to protect their money. Some buy Bitcoin to hold it as a store of value. Others use it to send money abroad to family or pay for services that can’t be accessed through traditional banks.

In 2025, Iran saw $3.7 billion in total crypto flows - down 11% from 2024. That drop isn’t because people lost interest. It’s because the government made it harder. The daily trading volume used to be $16-20 million. Now, it’s squeezed through narrow, monitored channels.

Who’s Really in Control?

The Islamic Revolutionary Guard Corps (IRGC) has been linked to crypto mining and trading. International watchdogs have flagged IRGC-linked wallets for sanctions violations. The U.S. and EU have targeted these wallets with asset freezes. Iran’s government denies any official involvement - but the lines are blurry. Miners pay taxes to the state. Exchanges report to the Central Bank. And the Central Bank answers to the highest levels of power.

So when you ask if crypto payments are allowed in Iran, the real question is: who’s paying whom?

What Happens If You Break the Rules?

There’s no public list of punishments - but reports suggest serious consequences. People caught running unlicensed exchanges have faced jail time. Bank accounts have been frozen. Wallets have been seized. The government doesn’t need to pass new laws to punish crypto users. They already have broad authority under anti-money laundering and counter-terrorism financing laws. If you’re using crypto outside their system, you’re already under suspicion.

Bottom Line: It’s Not About Ban - It’s About Control

Crypto payments aren’t banned in Iran. They’re absorbed. The government doesn’t want to kill crypto. It wants to own it. Mining is legal because it brings in revenue. Trading is allowed only through monitored channels. Advertising is banned to keep the public from getting too curious. And the digital rial is coming to replace everything.

If you’re in Iran and want to use crypto, your only safe path is through a government-approved exchange - and even then, you’re not paying for goods. You’re converting your rials into crypto, holding it, and hoping the value holds. Any attempt to use it like money? That’s a gamble - with your freedom on the line.

What’s Next?

The digital rial rollout will likely expand beyond Kish Island in 2026. Once it’s nationwide, the government will have full visibility into every digital transaction. At that point, even the underground crypto market may shrink. For now, Iran walks a tightrope: using crypto to dodge sanctions, while crushing its freedom to protect the rial.

So no, you can’t pay for coffee with Bitcoin in Tehran. But you can still buy it - if you’re willing to let the state watch every step.