A ground-breaking analysis from the blockchain research group Chainalysis reveals a remarkable development in Iran’s crypto scene throughout 2025. The data indicates that Bitcoin has increasingly become a focal point for many Iranians, serving as a refuge for citizens grappling with financial instability while also being exploited as a tool by the Islamic Revolutionary Guard Corps (IRGC) to solidify its grip on the country’s on-chain activities.
According to the full report, the Iranian cryptocurrency market processed over $7.78 billion in value in 2025, showcasing accelerated growth relative to 2024.
Notably, the report links fluctuations in crypto transactions to significant geopolitical events, regional strife, and internal disruptions, indicating that blockchain activity could serve as a real-time indicator of instability within the nation.
Bitcoin as a Safe Haven
One of the most striking observations in this report is the dramatic increase in Bitcoin withdrawals to personal wallets during widespread protests in late 2025 and early 2026. When comparing activity prior to these protests to the days leading up to the nationwide internet blackout on January 8, Chainalysis identified considerable spikes in transaction volumes along with transfers from Iranian exchanges to private Bitcoin wallets.
This behavior indicates that many Iranians are turning to Bitcoin as a form of financial security amid a deepening currency crisis and fraught political circumstances.
Since 2018, the Iranian rial has depreciated by around 90%, with inflation rates soaring between 40% and 50%. In such an economic landscape, Bitcoin’s resistance to censorship and its convenient portability provide an essential financial alternative—especially crucial during periods of protest, governmental restrictions, or the looming threat of abrupt migration.
Chainalysis also notes that this behavior mirrors trends in other nations where citizens resort to self-custody of digital assets when faith in state-run financial systems erodes.
The report illustrates distinct upticks in Iranian crypto activities following pivotal geopolitical events, such as the January 2024 Kerman bombings, which left nearly 100 mourners dead at a gathering for IRGC-Quds Force commander Qasem Soleimani.
Further activity spikes occurred after Iran’s missile strikes on Israel in October 2024, the assassination of key Hamas and Hezbollah leaders, and during a 12-day conflict in June 2025 involving U.S.-Israeli strikes on Iranian military sites, cyberattacks on Iran’s largest crypto exchange, Nobitex, and disruptions affecting Bank Sepah, a crucial financial entity with ties to the IRGC.
IRGC’s Expanding Role in the Crypto Economy
While Bitcoin has emerged as a lifeline for ordinary citizens, Chainalysis warns that the IRGC’s influence over Iran’s cryptocurrency landscape is surging. Wallets associated with IRGC-linked networks comprised approximately 50% of all crypto value received within the country in Q4 2025, a figure which has steadily increased over time.
In 2025, IRGC-associated wallets reportedly received over $3 billion in on-chain transactions, an increase from more than $2 billion in 2024.
This estimate represents a conservative figure, as it is generated solely from wallets identified publicly through sanctions sanctioned by the U.S. Treasury’s OFAC and Israel’s National Bureau for Counter Terror Financing.
The true breadth of these activities is likely broader due to the use of shell companies, intermediaries, and undisclosed wallets.
These extensive networks operate across various countries, enabling the movement of illicit oil revenues, money laundering, sanction evasion, and financing of Iran’s regional proxy entities.
Bitcoin: A Double-Edged Sword
Ultimately, Chainalysis concludes that cryptocurrencies, particularly Bitcoin, serve a dual purpose in Iran: acting as a financial escape route for citizens while simultaneously enabling sanctions evasion for governmental structures and security forces.
As Iran contends with mounting domestic dissent, economic turmoil, and external sanctions, on-chain data reveals an increasing trend of Bitcoin utilization independent of government oversight, particularly in times of crisis.
These findings highlight Bitcoin’s inherently neutral framework, providing vital support to civilians facing political upheaval while simultaneously facilitating operational capacities for state and paramilitary entities.
