Iran's Revolutionary Guard Corps has been linked to using cryptocurrency to evade U.S. sanctions, according to new findings from the U.S. Treasury and FinCEN.
This highlights the evolving tactics of sanctioned entities to access global financial systems, including the implications for the global cryptocurrency landscape.
IRGC's Crypto Use in Defense Exports Exposed
Recent U.S. sanctions explicitly connect Iran’s Islamic Revolutionary Guard Corps (IRGC) to using cryptocurrencies for financial evasion. Iran’s defense export sector publicly acknowledges crypto payments for arms exports. These actions illuminate Iran's growing crypto involvement.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has designated over 30 entities linked to Iran’s shadow banking network. Scott Bessent, Secretary of the Treasury, U.S. Department of the Treasury, stated, “Iran’s shadow banking system is a critical lifeline for the regime through which it accesses the proceeds from its oil sales, moves money, and funds its destabilizing activities.” source. This includes the Zarringhalam brothers' operations which facilitate financial channels for the Iranian regime’s exports and military funding.
Crypto in Arms Deals Raises Regional Tensions
The use of crypto in arms exports represents a challenge to U.S. sanctions, aiding untraceable financial activities. It strengthens Iran’s access to international funds, potentially escalating regional tensions and complicating enforcement measures. The strategic use of crypto bypasses traditional systems.
Without explicit token identification, the assumption aligns with high-liquidity assets like BTC or ETH. Historically, Iran’s sanctions evasion relies heavily on such financial tools. U.S. regulatory bodies emphasize enhanced compliance for identifying these transactions, ensuring financial institutions remain vigilant.
Parallels with North Korea's Sanctions Tactics
Iran's tactics resemble past sanctions-evasion efforts using non-traditional finance, aligning with methods documented by OFAC. This reflects a broader pattern observed with North Korea, utilizing similar channels to circumvent international financial barriers through crypto.
Kanalcoin analysts suggest Iran’s increased crypto integration could bolster financial resilience against Western sanctions, illustrating how effectively these systems can be adapted. This reliance on crypto highlights trends in state-level economic strategies.
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