The use of cryptocurrencies skyrocketed last year in Iran, amid a popular uprising that was brutally suppressed. According to a report by Chainalysis, both the Iranian government and the general public have turned to cryptocurrencies on a massive scale.
Iranians are flocking to cryptocurrencies
Iran has been cut off from the world since last week, as the authoritarian regime has cut off internet access for its population. However, an analysis of financial flows on the blockchain over the past year shows that cryptocurrencies were one of the pillars of the changes underway in the country.
A recent report by Chainalysis indicates that Iranians have turned to cryptocurrencies in the face of a catastrophic economic situation: the rial has plummeted by 90% since 2018, and the country is facing an inflation rate of 40 to 50%. Notably, it is not only the civilian population that is using them: half of the observable volume comes from the Islamic Revolutionary Guard Corps (IRGC), the regime’s paramilitary organization:
The IRGC has extensively exploited digital assets to finance its malicious activities, both domestically and through its network of proxy forces across the Middle East.
The crypto ecosystem exploded in Iran in 2025, reaching $7.7 billion in volume. The report also notes that peaks in activity correspond to peaks in geopolitical tensions:
Evolution of cryptocurrency trading volumes in Iran since 2023
The Revolutionary Guards are making cryptocurrencies a major tool
According to Chainalysis, the growth in volume linked to the Revolutionary Guards has mirrored their increasing control over the Iranian economy and its political institutions:
In 2024, the volume of funds received on-chain by addresses associated with the IRGC exceeded $2 billion, before climbing to over $3 billion in 2025. Notably, even these exceptional figures represent a conservative estimate, as they account for only a limited number of addresses identified through U.S. OFAC sanctions designations targeting IRGC wallets.
The report highlights that unreported volumes exist and that the financial network as a whole appears to be much larger, involving shell companies and discreet financiers:
We expect this figure to rise as […] larger segments of their money-laundering network are uncovered.
Iranians Withdraw Cryptocurrencies in Times of Crisis
The report also notes that withdrawals surged in the days leading up to the internet blackouts. The civilian population massively withdrew Bitcoins to individual addresses. Both the number of transfers and the amounts involved increased, against a backdrop of escalating tensions.
This increase suggests that Iranians are acquiring Bitcoin at a significantly higher rate during periods of protest than before. This behavior constitutes a rational response to the collapse of the Iranian rial, which has lost nearly all of its value.
The report also highlights that Bitcoin is not solely used to preserve Iranians’ capital. Its resistance to censorship and its liquidity allow for greater flexibility in terms of payment. This is also a trend observed in other countries facing economic tensions or collapses.
The situation in Iran remains critical, with humanitarian organizations reporting several hundred or even several thousand deaths at the hands of the regime. But the country continues to be subject to a blackout, making the flow of information difficult. According to Le Nouvel Obs, all digital communications now pass through a single exit point, controlled by the Revolutionary Guards.
