Iran crypto regulations: What's legal, what's blocked, and how people survive

When it comes to Iran crypto regulations, the complex mix of state control, international sanctions, and grassroots adaptation that defines how Iranians interact with digital currency. Also known as cryptocurrency restrictions in Iran, it’s not a simple ban—it’s a system where mining is tolerated, trading is restricted, and using Bitcoin to feed your family is quietly normal. The government doesn’t jail people for holding crypto, but it makes using it as money extremely hard. Banks are unreliable, the rial keeps losing value, and international payments are cut off. So people turn to crypto—not for speculation, but survival.

One of the biggest shocks came when Tether, the issuer of USDT, the most widely used stablecoin in Iran. Also known as USDT, it’s the digital lifeline for millions froze hundreds of thousands of Iranian wallets in 2023. No warning. No explanation. Just silence. That didn’t stop people. It just pushed them deeper underground. Now, peer-to-peer trades happen over Telegram, in basements, and through trusted local networks. Meanwhile, crypto taxes Iran, a new 2025 rule forcing users to report gains and pay up to 20% in income tax. Also known as crypto income tax, it’s one of the few places where owning crypto actually makes you taxable. The irony? The state wants a cut—but won’t let you easily cash out.

And then there’s the Nobitex hack, the 2022 breach that wiped out over $100 million in user funds and shattered trust in Iran’s largest exchange. Also known as Nobitex security failure, it showed how fragile local platforms are under pressure. After that, many switched to direct wallet-to-wallet transfers. Mining, though, is still legal—and booming. Iran has some of the cheapest electricity in the world, so miners run rigs in garages and warehouses. The government even tried to license them, hoping to capture energy use and tax profits. But most miners stay off the books. Why? Because if they register, they risk having their profits seized or their equipment confiscated.

What you won’t find in official reports is how Iranian women send money to relatives abroad using USDT through encrypted apps. Or how students pay for online courses with Bitcoin because Western payment systems block them. Or how traders use VPNs to access exchanges like Bybit—knowing full well their accounts could vanish overnight. This isn’t crypto as an investment. It’s crypto as a necessity. And in Iran, that means rules are written by banks and sanctions, not by lawmakers.

Below, you’ll find real stories from people living under these restrictions: how they bypass blocks, what happened after Tether froze wallets, why Nobitex collapsed, and how crypto taxes are changing behavior. No theory. No fluff. Just what’s actually happening on the ground in 2025.