How Bitcoin Enables Imports in Iran Amid Sanctions

When international sanctions cut Iran off from global banking, the country didn’t just wait for a solution-it built one. Bitcoin became more than a digital asset; it turned into a lifeline for importing essential goods. While the world focused on Bitcoin’s price swings, Iran quietly turned its cheap electricity and industrial scale into a powerful trade engine. Today, billions in crypto flow out of Iran every year-not for speculation, but to buy medicine, machinery, and food that sanctions otherwise block.

How Iran Uses Bitcoin to Import Goods

Iran doesn’t let citizens pay for groceries with Bitcoin. That’s not the goal. Instead, the government created a legal backdoor: miners produce Bitcoin using state-approved power, then sell it to the Central Bank of Iran (CBI) in exchange for foreign currency or trade credits. That money then funds imports. It’s a closed-loop system: electricity → Bitcoin → imports → survival.

The first confirmed import using crypto happened in August 2023, when a $10 million order for medical equipment was paid in Bitcoin. Since then, dozens of Iranian firms-some linked to the Islamic Revolutionary Guard Corps (IRGC)-have used the same method to buy industrial parts from China, Russia, and Turkey. These aren’t underground deals. They’re licensed, tracked, and approved by the CBI.

Unlike traditional banking, where U.S. sanctions freeze accounts and block wire transfers, Bitcoin moves without intermediaries. Iranian importers don’t need a U.S. bank. They don’t need SWIFT. They just need a digital wallet and a miner who’s cleared by the state. The CBI acts as the middleman: it takes Bitcoin from miners, converts it into dollars or euros on international exchanges, and then releases the funds to approved importers.

The Mining Machine Behind the Trade

Behind every Bitcoin import is a mining farm-often massive, often hidden, always powered. Iran has over 10,000 licensed mining operations, many clustered in special economic zones or on IRGC-controlled land. The biggest, a 175-megawatt facility in Rafsanjan, runs on electricity so cheap it’s practically free. That’s because Iran pays miners using subsidized power meant for homes and factories.

These aren’t hobbyists with rigs in their garages. These are industrial-scale operations using thousands of ASIC miners-specialized computers built only for Bitcoin mining. They hum nonstop, day and night, consuming as much power as a small country. And they’re not paying the bill. Investigations show that IRGC-linked entities, including religious foundations like Astan Quds Razavi, operate these farms with impunity. They get priority grid access, ignore electricity invoices, and even protect their sites with armed guards.

By 2024, Iran was producing nearly 5% of all new Bitcoin mined worldwide. That’s more than the entire United Kingdom. The revenue? Estimated at $1 billion a year from mining alone. But the real value isn’t in the coins-it’s in what those coins can buy.

Why Bitcoin Works When Banks Don’t

Sanctions don’t just block money-they block trust. When a European supplier hears Iran is trying to pay with dollars, they fear the payment will be frozen. When they hear it’s Bitcoin, they see a direct, irreversible transfer with no U.S. bank in the middle. No one can reverse it. No one can freeze it. No one can trace it back to the buyer’s name-unless they’re on Iran’s own approved list.

Iran’s system isn’t anonymous. It’s controlled. Every miner must register with the CBI. Every transaction must be documented. Every export of Bitcoin requires approval. The government tracks everything-but it also protects its own players. That’s the key difference: Western sanctions target individuals and banks. Iran’s system targets the flow of value through state-approved channels.

Iran also signed crypto cooperation deals with Russia, China, and several European countries as early as 2019. These aren’t just symbolic. They’re operational. Iranian firms use Binance and other exchanges to settle trade with Russian suppliers, avoiding dollar-based systems entirely. Since 2018, over $8 billion in crypto transactions have flowed through Binance alone, mostly tied to sanctioned Iranian entities.

The Hidden Cost: Power Outages and Public Anger

For every Bitcoin that pays for an import, someone in Tehran or Isfahan loses power. In 2023 and 2024, Iran suffered some of its worst blackouts in decades. Hospitals ran on generators. Factories shut down. Children studied by candlelight.

Why? Because mining farms are siphoning off electricity meant for citizens. A single large mine can use as much power as 100,000 homes. And they’re not paying for it. The government claims these are industrial facilities, so they get cheaper rates. But many are operating illegally on subsidized household power. In 2021, Iran arrested hundreds of miners caught using residential electricity. Enforcement was harsh-but only for small operators. The big ones? Protected.

Public anger is growing. Citizens report mining farms running 24/7 near schools and hospitals. The government’s response? Encourage people to report illegal miners. It’s a clever distraction: blame the small fry, protect the powerful. The result? A two-tiered system: state-backed miners get free power. Ordinary citizens get blackouts.

Who Benefits? Who Pays?

The winners are clear: the IRGC, state-linked foundations, and a handful of licensed importers. They get access to global goods without touching the dollar system. They earn Bitcoin through mining, then trade it for what they need.

The losers? Iranian families. They pay higher prices for goods that are harder to import. They endure rolling blackouts. They see their currency, the rial, weaken further-not because of inflation alone, but because the state is printing value digitally and exporting it, while keeping the rial trapped inside the country.

There’s no capital gains tax on Bitcoin in Iran because trading is banned for citizens. That means ordinary people can’t buy Bitcoin to protect their savings. Only the state and its allies can. This isn’t financial inclusion-it’s financial control.

Is This Sustainable?

Iran’s crypto trade model works-for now. But it’s built on shaky ground. The power grid is breaking. The mining industry is bloated. The regulatory system is complex and inconsistent. One blackout, one cyberattack, one crackdown on exchanges, and the whole system could stall.

And it’s not foolproof. Some importers still rely on intermediaries in Turkey or Dubai to convert crypto into cash. Others use fake invoices or overpriced goods to move value. The system is clever, but it’s not clean. And it’s not scalable beyond a certain point.

Still, Iran has proven something the world didn’t believe: sanctions can be bypassed. Not with evasion. Not with lies. But with a state-run, energy-powered, Bitcoin-based trade network. It’s not the future of global finance. It’s the future of survival under pressure.

What’s Next for Iran’s Crypto Trade?

As of early 2025, Iran is tightening its crypto rules. The CBI is shutting down rial payment gateways for exchanges. Only licensed platforms can operate. Miners must report every coin movement. The goal? More control. Less leakage.

But the pressure is mounting. The power grid can’t handle more mining. The world is watching. And Iran’s neighbors-Russia, China, Turkey-are building their own crypto trade networks. Iran isn’t alone anymore.

Whether this model lasts depends on two things: how long Iran can keep its power grid from collapsing, and whether the world lets it keep trading this way. For now, Bitcoin keeps Iran alive. But at what cost?