What happened?
The flow of cryptocurrency involving Iranian entities dropped to $3.7 billion from January to July 2025, marking an 11% decrease compared to the same period in 2024. A significant drop occurred after April, with June seeing inflows plunge by over 50% year-over-year, and July volumes fell by more than 76%. The decline coincided with various geopolitical events, including nuclear negotiation breakdowns, conflict with Israel, and power outages within Iran.
Who does this affect?
This affects Iranian crypto users, local exchanges, and international platforms dealing with Iranian entities. Nobitex, Iran’s leading exchange, experienced a $90 million hack, causing liquidity issues and prompting users to seek alternative platforms. The situation also impacts Iranian citizens using crypto to hedge against inflation and as a savings vehicle amidst economic instability.
Why does this matter?
The market impact is significant as the trust in domestic Iranian exchanges is waning, leading to a decline in transaction volumes. The Tether freeze on Iranian addresses disrupted settlement channels, forcing users to shift to different stablecoins like DAI. Despite these challenges, the Iranian crypto ecosystem shows adaptability, with users migrating to new technologies and methods, maintaining crypto’s role in financial activities under sanction pressures.