U.S. Extends Sanctions Regime to Iran's Digital Asset Sector

The U.S. Treasury this week said it is bringing Iran's digital asset industry under the same sanctions framework long applied to the country's oil, banking, and broader financial sectors, tightening restrictions on Tehran's use of cryptocurrency to evade international measures. The move, part of "Operation Economic Outcast"—described as an "Economic DDay" against Iran—marks a significant escalation in global crypto-related sanctions risk. Under the updated approach, the Treasury's Office of Foreign Assets Control (OFAC) has authority to sanction individuals anywhere in the world. OFAC said Iran is increasingly turning to cryptocurrency as a preferred tool for sanctions circumvention, enabling transactions tied to the Islamic Revolutionary Guard Corps and individuals inside the Iranian regime. The agency warned that foreign exchanges, over-the-counter desks, payment processors, and infrastructure providers that knowingly facilitate transactions involving Iran's digital asset sector could be added to the sanctions list and cut off from the U.S. financial system. Separately, OFAC sanctioned members of a group within Iran's Ministry of Intelligence and Security (MOIS) accused of targeting U.S. critical infrastructure, and published associated wallet addresses. The Bitcoin and other cryptocurrency addresses of Behzad Mesri, identified as a joint leader of the group, as well as Keyvan Fayyaz Ghareh Blagh and Arman Kahzadian, were added to the sanctions list. Bloomberg previously reported that Iran launched a Bitcoin-backed insurance service for shipping companies. In July, the U.S. froze crypto assets linked to the Iranian regime, most of which were Tether stablecoins.