Shipping companies using cryptocurrency for potential transit fees in Iran could face severe sanctions risks. Kaitlin Martin, senior intelligence analyst at Chainalysis, warns that such payments, including those for passage through vital waterways, may be interpreted as "material support" for the Iranian regime.
This risk stems from comprehensive US sanctions against Iran and specific sanctions on the Iranian Revolutionary Guard Corps. The warning follows reports that Iran might seek transit fees in cryptocurrency, a move previously cautioned against by US President Donald Trump.
While Iran has expanded its use of digital assets for trade, cryptocurrency is not a guaranteed sanctions workaround. Blockchain transactions leave a transparent, permanent record, making them potentially easier to trace than traditional evasion methods. Investigators can follow funds to cash-out points for freezing or seizure.
Other sanctioned nations, like Russia, have also explored digital tokens for cross-border trade following sanctions. Meanwhile, Iran's Bitcoin mining power has recently dropped significantly amid regional tensions, though the global Bitcoin network remains stable.