The United States has imposed new sanctions targeting Iran’s use of Bitcoin and digital assets as part of ongoing measures to disrupt financial pathways supporting the Iranian regime. BitBank
The United States has imposed new sanctions targeting Iran’s use of Bitcoin and digital assets as part of ongoing measures to disrupt financial pathways supporting the Iranian regime.
On Thursday, the US Department of the Treasury designated BitBank, an Iranian cryptocurrency exchange, within its broader campaign to counter Iran’s financial operations. Authorities stated that BitBank facilitated Bitcoin transactions for Iranian entities in a bid to bypass longstanding US economic sanctions.
Operation Economic Outcast, led by the US government, focuses on applying economic pressure to hinder the activities of the Islamic Republic of Iran and those who enable its financial networks.
BitBank, based in Iran, reportedly played a significant role in enabling Bitcoin transfers on behalf of institutions linked to the Iranian administration. According to the Treasury, these transactions have strengthened Iran’s ability to evade sanctions by utilizing decentralized digital currencies beyond the reach of conventional banking oversight.
Alongside BitBank, the Treasury targeted several individuals and entities believed to have assisted in these operations. These include Iranian financier Babak Zanjani, software developer Pishtaz Simorgh Electronic Trade Company, and three associates: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.
Since June, Iran’s Hormuz Safe Marine Services Authority has allegedly used BitBank to transfer Bitcoin to government-controlled organizations.
Commenting on the action, Secretary of the Treasury Scott Bessent emphasized the reach of US regulations concerning digital assets. He remarked,
“Today’s designations of Iranian digital asset infrastructure make perfectly clear that efforts to finance the Iranian regime using cryptocurrencies are not beyond OFAC’s reach. If you support the Iranian regime, the Department of the Treasury will sanction you.”
The Treasury described its latest measures as a direct response to the financial systems established by Zanjani to launder funds through digital asset channels. Officials asserted their intention to expand targeting to both domestic and international participants accommodating Iran’s crypto-driven financial infrastructure.
Iran has adopted digital assets, including Bitcoin, to facilitate cross-border transactions in the face of persistent US economic sanctions. Earlier this year, the country launched a Bitcoin-backed insurance program to assist its shipping sector.
In July, US agencies froze cryptocurrencies connected to the Iranian regime, primarily in the form of Tether’s stablecoin USDT. Unlike Bitcoin, which is decentralized and resistant to unilateral freezes, stablecoin issuers retain control over their assets and can block transfers when required.
The Treasury’s Office of Foreign Assets Control (OFAC) indicated in July that Iran circumvented restrictions by collecting Bitcoin payments from ships traversing the strategically critical Strait of Hormuz. The Hormuz Safe program, initiated under Iran’s Ministry of Economy, provides marine services and accepts payment in cryptocurrencies as an attempt to bypass international financial embargoes.
Mini dictionary: OFAC, or the Office of Foreign Assets Control, is a division of the US Treasury responsible for enforcing economic and trade sanctions based on foreign policy and national security goals.
Asset Type Ability to Freeze Bitcoin Decentralized cryptocurrency No central issuer, cannot be frozen Tether (USDT) Centralized stablecoin Can be frozen by TetherThe post US Treasury sanctions Iranian exchange BitBank for Bitcoin transfers to IRGC appeared first on COINTURK NEWS.
