Chainalysis’ new report shows the Iranian crypto-ecosystem booming in 2025. Bitcoin is playing an increasingly central role, both to ordinary citizens as well as government officials. seeking financial refuge And the Islamic Revolutionary Guard Corps. (IRGC), that now dominates most of the nation’s off-chain activity.
As per the reportThe crypto-economy of Iran processed over $7.78 billion worth in value by 2025. This was a faster growth than 2024.
Reports found that Iran’s crypto activity is closely linked to political upheavals, conflict in the region, and internal unrest. The data on blockchains can be used as a live barometer of country instability.
Bitcoin: a safe flight
A surge of Bitcoins being withdrawn from personal wallets is one of the most obvious trends in this report. mass protests in late 2025 and early 2026. Chainalysis compared the activity of Iranian exchanges and Bitcoin wallets before and after protests, as well as in the days leading up to Iran’s internet blackout nationwide on January 8.
Iranians may be using Bitcoin to flee from the currency crisis and uncertainty in their country.
Since 2018, the Iranian rial’s value has dropped by 90%, with an inflation rate between 40% and 50%. In that environment, Bitcoin’s censorship resistance and portability offer a rare form of financial optionality — especially during protests, capital controls, or the risk of needing to flee the country.
Chainalysis notes this pattern is similar in many other countries where people adopt Bitcoin during times of crisis, as they turn to their own self-banking when the trust for state-controlled finance systems fails.
Report shows significant spikes in Iranian Crypto activity after geopolitical, domestic, and major events including the Kerman 2024. bombings, which caused the death of more than 100 people near a monument to IRGC Quds Force leader Qasem Solimani.
It also showed a surge in activity since Iran launched its October 2024 ballistic missile strikes The U.S., Israel and Iran will strike Iranian military installations during the 12-day War in June 2025. cyberattacks Bank Sepah – a financial institution closely linked to IRGC – and Iran’s biggest crypto exchange Nobitex have been disrupted.
The IRGC dominates Iran’s cryptocurrency economy
Chainalysis says that while Bitcoin is a vital tool for civilians in Iran, the IRGC has a growing influence on its crypto ecosystem. Around 50% of the total crypto-value received by Iran was attributed to addresses associated with IRGC affiliated networks in Q4 2025. The share has grown steadily over time.
In 2025, wallets linked to the IRGC will have received over $3 billion as opposed to $2 billion in 2010.
Chainalysis said This is a low-end estimate based solely on the wallets that have been publicly designated by OFAC, U.S. Treasury and Israel’s National Bureau for Counter Terror Financing.
It is more likely that the true size of this scam will be much larger due to the fact that shell companies are used, as are facilitators and unidentified wallets.
These multi-country networks move illegal oil revenues and launder money, avoid sanctions and fund Iran’s regional proxy group.
Bitcoin sanctions and resistance
Chainalysis reported that Bitcoin and crypto played a double role in Iran. It was a way for Iranians to escape sanctions and it also served as a tool used by the government and security services.
On-chain data show that Bitcoin is increasingly used without government control in Iran, particularly during times of crisis.
These findings underscore how Bitcoin’s permissionless design cuts both ways — serving as a lifeline for civilians facing political instability while also enabling state and paramilitary actors, reinforcing the case that Bitcoin itself is neutral infrastructure for a couple different actors.
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Source: bitcoinmagazine.com
