Iran Prepares to Accept Cryptocurrency for Weapons Sales, Escalating Sanctions Evasion

Iran’s Ministry of Defence Export Center (Mindex) has signaled its readiness to accept cryptocurrency payments for arms exports, including ballistic missiles, warships, and other advanced military hardware — a move analysts say could further undermine Western sanctions aimed at restricting Tehran’s military and financial networks.

According to the Financial Times, Iran’s state-run defense exporter announced it is prepared to negotiate military contracts with payment in digital currencies, alongside barter agreements and Iranian rials. The policy, first proposed in 2025, could make Iran the first nation to publicly endorse cryptocurrency as a payment method for weapons exports.

Contracts reportedly cover missiles, rockets, drones, hovercraft, and naval systems. Mindex claims partnerships with roughly 35 countries and maintains a portfolio of defense products on its official website. Emphasizing its ability to circumvent sanctions, the agency stated:

“Given the general policies of the Islamic Republic of Iran regarding circumvention of sanctions, there is no problem in implementing the contract. Your purchased product will reach you as soon as possible.”

Iran remains under comprehensive U.S., U.K., and EU sanctions, targeting its nuclear program, missile development, and oil exports. Blocked from traditional banking systems, Tehran has increasingly turned to barter trade and digital assets such as Bitcoin to finance international transactions.

Last September, the U.S. Treasury identified two Iranian nationals who facilitated more than $100 million in crypto transactions between 2023 and 2025 to process government oil sales. Officials described these operations as part of Iran’s larger “shadow financial network”, a decentralized system that conceals sanctioned trade flows.

In December, U.S. authorities sanctioned 29 “shadow fleet” vessels allegedly involved in covert petroleum exports linked to crypto-enabled payments, highlighting the growing reliance on digital assets to evade restrictions.

While cryptocurrencies have long offered sanctioned actors a way to move funds outside traditional financial channels, Iran’s plan to formally accept crypto for weapons sales represents a significant escalation — merging blockchain technology with global arms commerce.

Washington and European regulators are expected to closely monitor blockchain transactions involving Iranian entities, warning that crypto payments for defense deals could further complicate sanctions enforcement. Tehran’s move underscores a broader trend: using decentralized finance not primarily as innovation, but as a strategic geopolitical tool to maintain economic and military leverage despite international restrictions.