Key facts
- Iran's central bank has eased foreign currency controls.
- Exporters can now use overseas earnings to fund imports directly.
Iran's central bank has reportedly eased foreign currency controls, allowing exporters to use cryptocurrency like Tether and Bitcoin to fund imports and bypass official exchange rates amid tightening US sanctions.
The move signifies Iran's increasing reliance on cryptocurrency to circumvent international financial restrictions and sanctions, potentially impacting global efforts to enforce economic penalties.
Iran's central bank has reportedly eased foreign currency controls to encourage businesses to bring overseas earnings home, including through cryptocurrency, amid tightening US sanctions. Exporters can now use their earnings to fund imports directly without first selling their foreign currency at official rates. This move allows for the use of cryptocurrencies such as Tether's USDt and Bitcoin to settle cross-border transactions through Iranian cryptocurrency exchanges. The Central Bank of Iran did not respond to requests for comment. Previously, blockchain analytics firm TRM Labs reported over $3.8 billion in flows between crypto exchange CoinEx and sanctioned Iranian entities. CoinEx denied any commercial relationship with the Iranian government or domestic exchanges. In June, the US Treasury sanctioned four Iranian crypto exchanges and seized approximately $1 billion in Iranian crypto assets. US authorities also directed the freeze of over $130 million in crypto linked to Iran's central bank.
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