Shipping companies that turn to cryptocurrency to pay potential transit fees to Iran could face significant sanctions, according to Kaitlin Martin, senior intelligence analyst at Chainalytic.
Martin told Cointelegraph that under the current sanctions framework, any payments made to the Iranian regime, including those related to passage in key waterways, could be interpreted as “material support,” putting companies at risk of violating U.S. and international restrictions.
“This could pose a significant risk of sanctions violations because Iran’s Revolutionary Guard Corps is subject to multi-jurisdictional sanctions and Iran is subject to comprehensive sanctions imposed by the United States,” she said.
The warning comes amid reports that Iran may seek to charge cryptocurrency transit fees. Although there was no official confirmation, US President Donald Trump did he said would not accept any attempt by Tehran to impose tolls on navigation in this crucial waterway.
Related: White House warns staff as facilities in Iran raise insider trading concerns
Iran is expanding its utilize of cryptocurrencies
Tehran has already expanded its utilize of digital assets, particularly stablecoins, to facilitate trade in oil, weapons and goods, based on publicly available data, Martin said.
However, she noted that cryptocurrency is not a reliable bypass of sanctions. While it enables cross-border transfers outside the conventional financial system, blockchain transactions are inherently clear and leave a indefinite record.
“In many respects, cryptocurrency is actually more traceable than traditional methods of sanctions evasion,” she said, pointing to investigators’ ability to track funds for disbursement to points where assets can be frozen or confiscated.
Other sanctioned countries have also explored similar approaches. For example, Russia has used digital tokens such as A7A5 to facilitate cross-border trade following sanctions imposed following its 2022 invasion of Ukraine.
Related: Bitcoin community weighs in on reports of crypto fees in Iran for oil ships
Bitcoin hashrate in Iran drops rapidly
As Cointelegraph reports, Iran’s Bitcoin (BTC) mining power has dropped significantly over the past quarter, losing around 7 exahashes per second and dropping to around 2 EH/s amid escalating tensions with the United States and Israel.
Despite regional disruptions, the global Bitcoin network remains stable, with the total hashrate remaining close to 1,000 EH/s. It is worth noting that the impact was circumscribed in Iran, while neighboring countries such as the United Arab Emirates and Oman were not affected.
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