Iran’s Cryptocurrency Landscape in 2025
Iran’s cryptocurrency landscape has faced significant challenges in 2025, marked by a notable decline in transaction volumes, a major security breach, and escalating geopolitical tensions. According to TRM Labs, the total cryptocurrency flows involving Iranian entities fell to approximately $3.7 billion between January and July 2025, representing an 11% decrease compared to the same period in 2024.
The Nobitex Hack: A Major Setback
On June 18, 2025, Nobitex, Iran’s largest cryptocurrency exchange, suffered a significant cyberattack attributed to the hacking group “Predatory Sparrow,” reportedly linked to Israel. The attackers drained nearly $90 million from Nobitex’s hot wallets, transferring the funds to addresses containing anti-regime messages. This act was interpreted as a politically motivated move rather than a financially driven theft.
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The breach exposed vulnerabilities in Nobitex’s security infrastructure and disrupted its operations, leading to a temporary shutdown of its website and app. The attack not only impacted Nobitex but also shook the confidence of Iranian users in domestic cryptocurrency platforms. In the week leading up to the conflict, outflows from Nobitex surged more than 150% over the prior week, with much of the volume moving to global exchanges or payment service providers offering limited Know Your Customer (KYC) measures for smaller transactions.
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Tether’s Freezing of Iranian-Linked Wallets
Compounding the challenges, Tether, the issuer of the USDT stablecoin, froze several wallets linked to Iranian entities. This action removed a significant source of liquidity from the Iranian crypto market, further complicating transaction settlements and eroding trust in the stability of digital assets within the country.
Read more at Cryptopolitan
Geopolitical Tensions and Their Impact
The decline in crypto flows also coincided with heightened geopolitical tensions, particularly the brief but intense 12-day conflict between Iran and Israel in mid-June 2025. This period saw increased cyber activities and physical confrontations, contributing to economic instability and a cautious approach among investors and users in the crypto space.
Further details at Cryptopolitan
Regulatory Responses and Market Adaptations
In response to these events, the Iranian government has taken steps to regulate the cryptocurrency sector more stringently. In August 2025, it enacted the Law on Taxation of Speculation and Profiteering, introducing a capital gains tax on cryptocurrency trading. This move aims to formalize the sector but also reflects the state’s intent to exert greater control over digital financial activities.
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Despite these challenges, the Iranian crypto community has shown resilience. Users have migrated to alternative platforms and networks, such as the Polygon network, to continue their activities. However, the overall sentiment remains cautious, with trust in domestic exchanges significantly eroded.
Looking Ahead
The events of 2025 have underscored the vulnerabilities and complexities of Iran’s cryptocurrency ecosystem. The interplay between cyber security, geopolitical dynamics, and regulatory frameworks continues to shape the landscape. For the Iranian crypto market to regain stability and growth, addressing security concerns, rebuilding user trust, and navigating the geopolitical environment will be crucial.
As the situation evolves, stakeholders within and outside Iran will be closely monitoring developments, recognizing that the digital asset space is not only a financial arena but also a reflection of broader political and economic currents.
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