Iran has one of the strangest crypto policies in the world: it lets you mine Bitcoin but bans you from buying it with your rial. By December 2025, the government had turned digital asset trading into a high-stakes game of rules, limits, and hidden workarounds - all while the Iranian rial keeps losing value faster than ever.
Why Iran Banned Crypto-to-Rial Trading
In late 2024, the Central Bank of Iran shut down every website that let people trade cryptocurrency for Iranian rials. No more buying Bitcoin with your salary. No more selling Ethereum to pay rent. The goal? Stop the rial from collapsing completely.
The rial has lost over 90% of its value since 2018. Inflation is out of control. People are desperate to protect their savings. Crypto - especially stablecoins like USDT - became the only real option. But the government saw that as a threat. If everyone moved their money out of rials, the currency could die. So they cut the pipes.
The ban wasn’t total. In January 2025, the Central Bank started allowing a few licensed exchanges to operate again - but only if they gave the government full access to every transaction. Your name, your ID, your wallet address, your trade history. All of it. No privacy. No anonymity. Just control.
Stablecoin Limits: $5,000 a Year, $10,000 Max
On September 27, 2025 - just hours before new UN sanctions kicked in - Iran dropped its most specific crypto rule yet: you can only buy $5,000 worth of stablecoins per year. And you can’t hold more than $10,000 total.
That’s not a suggestion. It’s a legal limit. The Central Bank gave people one month to sell off any excess. If you had $15,000 in USDT, you had to get rid of $5,000. If you didn’t? You risked fines, account freezes, or worse.
Why stablecoins? Because they’re tied to the U.S. dollar. For Iranians, USDT isn’t crypto - it’s survival. It’s how they buy medicine, send money to family abroad, or save for a car. The $5,000 cap means a family can’t even protect half their annual income from inflation. The $10,000 ceiling? That’s less than the cost of a used car in Tehran.
Advertising Is Now Illegal
In February 2025, Iran made it illegal to advertise cryptocurrency anywhere - online, on TV, on billboards, even in WhatsApp groups. No more influencers promoting Binance. No more YouTube videos showing how to buy USDT. No more ads for Nobitex, Iran’s biggest exchange.
This wasn’t just about control. It was about erasing crypto from public view. The government didn’t want people thinking crypto was normal. It wanted them to forget it existed - even though millions were still using it.
And it worked, sort of. Ads disappeared. But underground networks grew. Telegram channels became the new stock tickers. Private groups replaced public promotions. The ban didn’t stop trading - it just made it harder to find.
Tether’s 0 Million Freeze and the Move to DAI
On July 2, 2025, Tether - the company behind USDT - froze 42 cryptocurrency wallets linked to Iranian users. Over half of them connected to Nobitex, Iran’s top exchange. Some wallets had ties to the Islamic Revolutionary Guard Corps (IRGC), which is under U.S. sanctions.
The freeze was the biggest Tether has ever done. And it sent shockwaves through Iran’s crypto community. Overnight, people lost access to millions of dollars in savings.
But Iranians adapted fast. Within days, crypto influencers and exchange operators started pushing a new plan: dump USDT. Buy DAI instead. DAI is another stablecoin - but it runs on the Polygon network, which is cheaper, faster, and less monitored by U.S.-based companies.
It wasn’t perfect. But it worked. DAI became the new rial hedge. People switched not because they liked it better - but because Tether couldn’t freeze it as easily.
Iran’s Own Digital Currency: The ‘Rial Currency’
While cracking down on Bitcoin and Ethereum, Iran quietly launched its own digital currency: the Rial Currency. It’s not decentralized. It’s not mined. It’s just electronic rials - controlled entirely by the Central Bank.
Think of it like a government app that lets you pay for groceries with your phone. No blockchain. No volatility. Just another way for the state to track every penny you spend.
The pilot started on Kish Island, a tax-free zone where foreigners come to shop. The goal? Replace U.S. dollars in local trade. But so far, no one outside the government seems to trust it. Why would you use a digital rial when the real rial is falling apart?
Crypto Mining Is Still Legal - and Profitable
Here’s the twist: while you can’t trade crypto in Iran, you can mine it. And Iran is one of the top five Bitcoin mining countries in the world.
Why? Cheap electricity. The government pays almost nothing for power. So mining rigs - thousands of them - run nonstop in warehouses, basements, and even homes. Bitcoin mining brings in about $1 billion a year. That’s real cash for the state.
But the grid is cracking. Cities have rolling blackouts. The government now limits how much power miners can use. Still, mining continues. Because for Iran, crypto isn’t about freedom. It’s about revenue.
Taxes on Crypto Profits Are Now Real
In August 2025, Iran passed its first crypto tax law. If you make money trading Bitcoin or Ethereum, you pay capital gains tax - just like you would on real estate or gold.
This is huge. It means the government no longer pretends crypto doesn’t exist. It admits it’s here. And now it wants a cut.
The tax isn’t enforced yet. It’s being phased in slowly. But the message is clear: if you profit from crypto, you’re not hiding anymore. The state knows. And it’s coming for its share.
How Iranians Are Still Trading - Even With All the Rules
Despite all the bans, limits, and taxes, crypto trading hasn’t stopped. It just went underground.
People now use:
- Peer-to-peer (P2P) apps like LocalBitcoins and Paxful
- Telegram groups where traders meet in private chats
- Foreign exchanges with fake IDs or VPNs
- Friends who travel abroad to buy crypto and bring it back
Some even use gold or foreign cash as intermediaries - selling rials for gold, then gold for crypto outside Iran, then crypto back to rials through a trusted contact.
It’s messy. It’s risky. But it’s the only way to keep savings alive.
What This Means for the Future
Iran isn’t trying to stop crypto. It’s trying to control it. To use it for revenue. To block its use as a tool for rebellion. To make sure the rial doesn’t vanish - even if it means turning its own people into financial prisoners.
The result? A country where mining is legal, trading is restricted, advertising is banned, and holding crypto is capped - yet millions still find a way.
This isn’t just about Iran. It’s a preview of what other sanctioned nations might do. China already bans crypto. Russia walks a tightrope. Venezuela tried and failed. Iran is the first to combine all these tactics - and survive.
For ordinary Iranians, crypto isn’t an investment. It’s a lifeline. And no law, no cap, no freeze can fully cut it off.
Can I still buy Bitcoin in Iran?
Yes, but not with rials. You can’t buy Bitcoin directly from Iranian exchanges using your bank account anymore. But you can still buy it through peer-to-peer platforms, Telegram groups, or by using foreign accounts and VPNs. The only legal way to get crypto now is through government-approved exchanges - and even then, you must give them your full identity and transaction history.
What happens if I hold more than $10,000 in stablecoins?
You’re breaking the law. The Central Bank of Iran requires you to reduce your holdings to under $10,000. If you don’t, your accounts could be frozen, you could face fines, or your identity could be flagged for further investigation. While enforcement isn’t always immediate, the government has full access to exchange data - so they know who has what.
Why does Iran allow crypto mining but ban trading?
Mining brings in hard currency - Bitcoin that can be sold abroad for dollars or euros. That’s money the government needs to fund its operations. Trading, on the other hand, lets people escape the rial. That weakens the currency and undermines state control. So they let mining continue - but only if they can monitor every transaction and profit from it.
Is DAI safer than USDT in Iran?
Yes, for now. After Tether froze Iranian wallets in July 2025, DAI became the preferred stablecoin because it runs on the Polygon network, which is less tied to U.S.-based oversight. Tether can freeze USDT. DAI’s decentralized structure makes it harder to block - though not impossible. Many Iranians now use DAI as their main store of value.
Can I use Iran’s digital rial instead of crypto?
Technically yes, but practically no. The digital rial is just an electronic version of the paper rial - so it loses value at the same rate. It’s not designed to protect your savings. It’s designed to track your spending. If you want to preserve wealth, the digital rial won’t help. That’s why people still turn to crypto - even with all the risks.
Are there any legal ways to send crypto out of Iran?
No direct legal path exists. Sending crypto out of Iran is considered capital flight and is illegal under current laws. But people do it anyway - through trusted contacts abroad, foreign exchanges with fake IDs, or by converting crypto to physical goods (like gold or electronics) and shipping them out. There’s no official system. It’s all unofficial, risky, and personal.
Will Iran’s crypto restrictions last?
As long as the rial keeps falling and sanctions stay in place, yes. The government won’t give up control. But if the economy improves or sanctions are lifted, restrictions might ease - or shift. Right now, crypto is a tool for survival. The state won’t let people use it freely, but it also can’t stop them entirely.
Sammy Tam
December 16, 2025 AT 20:34Man, this is wild. Iran’s whole crypto policy feels like trying to stop the tide with a sieve. People aren’t gonna stop using USDT just because the government says so - they’re using it to feed their families. The fact that mining’s still booming while trading’s banned? That’s not a policy, that’s a paradox wrapped in a power bill.
And DAI replacing USDT? Genius move. When the system tries to control everything, people find the loopholes that actually work. It’s not about crypto anymore - it’s about survival. The state can freeze wallets, but it can’t freeze human ingenuity.
Also, the digital rial? More like a digital leash. No one’s gonna trust a currency that’s just a fancy version of the thing that’s falling apart. This isn’t a crackdown - it’s a confession that they’ve lost control.
George Cheetham
December 18, 2025 AT 19:10It’s fascinating how this mirrors global trends - authoritarian regimes trying to weaponize digital finance while simultaneously depending on it. Iran isn’t unique; it’s just the most honest about it. They admit crypto is real, they just want to own it.
What’s chilling is how the state weaponizes surveillance. Every transaction monitored, every identity logged. It’s not about economics - it’s about control. And yet, people still trade. Because when your currency is worthless, freedom becomes the only asset that matters.
This is the future of sanctioned economies. Not bans. Not crackdowns. But layered, adaptive resistance. And honestly? I’m not surprised they’re winning.
Terrance Alan
December 20, 2025 AT 00:42Sally Valdez
December 21, 2025 AT 14:05Oh wow, look who’s crying about crypto freedom. Iran’s government is literally printing money like it’s confetti and calling it a currency. And you think banning trading is oppression? Bro, the real oppression is letting people trade crypto to avoid starvation.
Meanwhile in the US we got TikTok influencers selling Dogecoin to college kids who think it’s a meme and not a financial tool. But sure, let’s pretend Iran’s the villain here. Meanwhile your 401k’s getting eaten by inflation and you’re still buying NFT monkeys.
Stop pretending you’re morally superior. You’re just jealous they’re winning at capitalism while you’re stuck in your Zoom call.
Sue Bumgarner
December 21, 2025 AT 22:30Iran’s doing what any sovereign nation should do - protect its currency from external manipulation. The US dollar is a weapon. Stablecoins are just digital dollars. Letting citizens hoard them is economic treason.
And don’t act like DAI is some magical escape hatch. It’s still built on blockchain tech that’s monitored by American devs. You think Tether’s the only one who can freeze wallets? The whole system’s rigged. You’re just mad because you can’t game it anymore.
Meanwhile, the real story? Iran’s mining rigs are running on state-subsidized power. That’s not freedom - that’s state capitalism with Bitcoin as the cash register. And it’s working.
Stop romanticizing this. People aren’t heroes. They’re desperate. And desperation doesn’t make you righteous - it makes you vulnerable.
Rebecca Kotnik
December 22, 2025 AT 19:25The complexity of this situation is staggering. On one hand, the Iranian government is engaging in a form of economic triage - attempting to preserve the structural integrity of a currency that has been systematically devalued by decades of mismanagement and external sanctions.
On the other, the population’s adoption of decentralized stablecoins represents a profound, grassroots assertion of economic autonomy - a quiet, nonviolent revolution conducted through peer-to-peer networks and encrypted channels.
It is deeply ironic that the state permits mining - a process that generates hard currency - while prohibiting retail trading, which would allow citizens to hedge against hyperinflation. This suggests a fundamental dissonance in policy: the state seeks revenue, not stability for its citizens.
The imposition of a $5,000 annual cap on stablecoin purchases is not merely regulatory - it is punitive. It assumes that the average Iranian family’s annual income is sufficient to be protected by such a limit, when in reality, the rial’s depreciation renders even modest savings meaningless within months.
Furthermore, the criminalization of advertising creates a paradox: the state acknowledges the existence of crypto by regulating it, yet denies its legitimacy by suppressing public discourse around it. This is not censorship - it is cognitive dissonance institutionalized.
The emergence of DAI as a preferred asset is not a technical preference - it is a strategic adaptation born of necessity. The fact that Iranians have migrated to a less centralized stablecoin system demonstrates their capacity for innovation under duress - a quality often absent in more materially secure societies.
The digital rial, by contrast, is not a currency - it is a surveillance tool. Its purpose is not to preserve value, but to track behavior. In this context, crypto is not an alternative to the state - it is the only mechanism through which individuals can reclaim agency from it.
What we are witnessing is not a failure of regulation, but a triumph of human resilience. The state may control the pipes, but it cannot control the water. And water, as we know, always finds a way.
Jonny Cena
December 24, 2025 AT 07:57It’s heartbreaking but not surprising. People aren’t breaking laws because they want to rebel - they’re doing it because they have no other choice.
Imagine having to choose between buying insulin and keeping your savings from evaporating. That’s not a crypto problem. That’s a human problem.
And the fact that they’re switching to DAI? That’s not tech-savviness - that’s survival instinct. When the system fails you, you adapt. Not with protest, not with riots - with quiet, clever, daily acts of resistance.
We talk about freedom like it’s a slogan. But here? Freedom is a Telegram group. A VPN. A friend who travels. A $10,000 cap that’s not a limit - it’s a lifeline.
Let’s stop calling them crypto traders. Call them guardians of dignity.
Kayla Murphy
December 24, 2025 AT 23:48I just want to say how brave these people are. They’re not rich, they’re not tech bros - they’re teachers, nurses, shop owners trying to keep their kids fed.
And instead of getting help, they get punished. The government’s policy is cruel. It’s like taking away the only lifeboat while saying, ‘We’re saving the ship.’
But they’re still paddling. Still finding ways. Still trusting each other. That’s the real story here - not the rules, not the caps, not the freezes.
It’s people refusing to give up.
And that? That’s worth more than any currency.
Samantha West
December 25, 2025 AT 18:43It is not merely a policy failure - it is an epistemological collapse. The state has attempted to impose a monolithic narrative upon a decentralized, inherently pluralistic technology - a fundamental category error.
By banning peer-to-peer transactions while permitting mining - a process that is itself a form of decentralized consensus - the Iranian regime reveals a profound misunderstanding of the ontological nature of cryptocurrency.
One cannot selectively authorize a subset of blockchain activity while suppressing its social infrastructure. The architecture of trust in crypto is not contained within exchanges - it resides in the network, in the anonymity, in the refusal to be tracked.
Furthermore, the imposition of a $10,000 holding cap is not an economic measure - it is a psychological one. It seeks to instill a sense of limitation, of scarcity, of powerlessness - a deliberate erosion of agency.
And yet, the populace has responded not with compliance, but with innovation - DAI on Polygon, P2P networks, gold arbitrage - all forms of emergent resistance that operate outside the state’s epistemic frame.
The digital rial, then, is not a currency - it is a monument to control. A gilded cage with a blinking cursor.
What we witness here is not a nation resisting crypto - but crypto resisting the nation.
Greg Knapp
December 25, 2025 AT 20:18Elvis Lam
December 27, 2025 AT 15:19Let’s cut through the noise. Iran’s crypto policy isn’t about inflation - it’s about power. The government doesn’t care if you lose your savings - they care if you can move money without them knowing.
They let mining continue because Bitcoin mining = dollars flowing into state coffers. They ban trading because it gives people a way out - and that’s a threat.
And yes, DAI is safer than USDT - not because it’s magic, but because Tether is a U.S. company. Polygon isn’t. So Iranians moved. Fast. Smart. No fanfare.
Here’s the real takeaway: if you’re building a financial system that requires surveillance, you’re not building a system - you’re building a prison. And people will always find the cracks.
Also - taxes on crypto profits? That’s the state admitting defeat. They knew it was happening. They just didn’t want to tax it. Now they’re trying to monetize the rebellion. Classic.
Amy Copeland
December 29, 2025 AT 12:25Oh sweetie. You really think DAI is some kind of crypto utopia? It’s still blockchain. It’s still traceable. It’s still subject to global liquidity shocks and governance votes.
And you’re acting like Iranians are these noble crypto rebels - when really, they’re just the latest demographic to get scammed by a whitepaper that says ‘decentralized’ and thinks that means ‘unhackable.’
Meanwhile, the real story? Iran’s economy is collapsing because they spent 30 years betting on oil and ideology. Now they’re trying to fix it with a meme coin.
It’s not resistance. It’s desperation dressed up in tech jargon.
And the digital rial? At least it’s honest. It doesn’t pretend to be free. It just says, ‘We’re stealing your money - and now we’ll track how much you lost.’
Dionne Wilkinson
December 29, 2025 AT 19:37I think about how my grandma saved money in a cookie jar. No app. No wallet. Just paper bills under the mattress.
Now Iranians are doing the same thing - but with digital keys instead of paper. It’s not about Bitcoin. It’s about holding onto something that won’t vanish overnight.
They’re not tech experts. They’re parents. Grandparents. Students. They just want to be able to buy bread next month.
And the government? They’re scared. Not of crypto. Of people remembering they have choices.
That’s the real revolution.
Chevy Guy
December 29, 2025 AT 21:49Sean Kerr
December 30, 2025 AT 08:26Y’all gotta stop acting like this is just about money 😭
This is about people refusing to be broken. They’re not trading crypto because it’s cool - they’re doing it because their rent is $2000 in rials and their kid needs insulin.
And the fact that they switched to DAI? That’s not luck - that’s genius. Like, imagine being told you can’t use your phone - so you build a new one out of spare parts.
God bless these people. They’re not hackers. They’re heroes. And if you’re not crying right now, you’re not paying attention 💔
Also, Tether froze wallets? LMAO they thought they could stop a whole country. 😂
Heather Turnbow
December 30, 2025 AT 11:27The depth of this situation is often overlooked. The Iranian government’s approach reveals a paradoxical duality: it simultaneously acknowledges the economic utility of cryptocurrency while seeking to neutralize its disruptive potential.
By permitting mining - a process that generates foreign currency - the state effectively externalizes the economic burden of hyperinflation onto global markets, while internalizing the social consequences through currency suppression.
Moreover, the $5,000 annual limit on stablecoin purchases is not merely a fiscal constraint - it is a symbolic gesture of control, designed to create a psychological threshold beyond which citizens must either submit or risk punishment.
The criminalization of advertising is equally telling: it seeks to erase crypto from the public consciousness, not because it is ineffective, but because its normalization threatens the state’s monopoly on economic narrative.
Yet, the resilience of peer-to-peer networks, the migration to DAI, and the covert use of foreign intermediaries demonstrate that institutional control cannot supplant individual agency when survival is at stake.
What emerges is not a failure of regulation, but a triumph of human adaptability - a quiet, persistent reclamation of autonomy in the face of systemic erosion.
Sammy Tam
December 31, 2025 AT 16:49Just read this again. The fact that the government’s own digital currency is ignored while people risk jail for DAI? That’s the most powerful thing here.
They built a prison… and forgot to lock the door.
People don’t need permission to survive.