Crypto Regulations in Iran: What You Need to Know About Trading and Restrictions

When it comes to crypto regulations in Iran, the official stance bans domestic cryptocurrency use as a payment method, but enforcement is patchy and underground activity thrives. Also known as Iranian crypto rules, these policies are designed to protect the Iranian rial from dollarized digital assets, yet millions still trade Bitcoin and Ethereum daily. The government doesn’t own crypto—it fears what it enables. People use it to bypass sanctions, send money abroad, or protect savings from hyperinflation. It’s not about technology. It’s about survival.

There’s a clear gap between law and reality. While the Central Bank of Iran prohibits banks from handling crypto transactions, Bitcoin Iran, a peer-to-peer market fueled by cash dealers and Telegram groups. Also known as P2P crypto Iran, it’s the backbone of digital finance for ordinary citizens. You won’t find a licensed exchange like Binance or Crypto.com operating openly, but you’ll find people trading RUB for BTC in parking lots, cafes, or through encrypted apps. The same thing happened in Russia and Myanmar—when formal systems fail, crypto fills the void. The difference? Iran’s government doesn’t shut it down completely. It watches, taxes, and sometimes cracks down on large operators—but leaves small traders alone.

What about mining? Iran became one of the world’s top Bitcoin mining hubs in 2021 because of cheap electricity. The state even tried to take control of mining farms, demanding miners sell their coins to the central bank at fixed prices. But miners resisted. They sold on the black market instead. This isn’t rebellion—it’s adaptation. And it’s why crypto trading Iran, despite being technically illegal for retail users. Also known as Iranian crypto market, it continues to grow with no sign of slowing. The real question isn’t whether Iranians use crypto. It’s how they do it without getting caught. Most use cash-based P2P trades, avoid KYC, and never link their real identity to a wallet. They know the risks. They’ve seen others arrested for running large operations. But for many, the alternative—watching savings vanish due to inflation—is worse.

There’s no official list of banned coins. No clear penalty scale. The rules change monthly. One day, a mining rig is legal. The next, it’s seized. That’s why you won’t find a single guide that’s fully accurate for long. What stays constant? People will always find a way. And if you’re looking to understand crypto in Iran, you’re not studying policy—you’re studying human behavior under pressure.

Below, you’ll find real stories from Iranians trading crypto under restrictions, breakdowns of how P2P networks operate, and warnings about scams that target those trying to get in. No theory. No fluff. Just what’s actually happening on the ground.