Are Crypto Payments Allowed in Iran? What You Need to Know in 2025

Can you use Bitcoin or Ethereum to pay for groceries, rent, or services in Iran? The short answer is: not really - not directly, not legally, and not without serious oversight. While Iran is one of the world’s top cryptocurrency mining nations, crypto payments for everyday transactions are tightly controlled, heavily monitored, and mostly blocked for regular users. The government doesn’t outright ban crypto - it just makes it nearly impossible to use it like money.

Miners Are Legal. Buyers Are Not.

Iran lets people mine Bitcoin and other cryptocurrencies. In fact, it’s one of the biggest mining hubs on the planet, responsible for about 4.5% of global hash power. Why? Because electricity is cheap, and the government wants a cut. Since 2019, miners have been required to get licenses from the Ministry of Industry, Mine and Trade. They must use approved hardware, pay government-set electricity rates, and sell all their mined coins directly to the Central Bank of Iran (CBI). That’s not a suggestion - it’s a rule. And it’s how Iran turns crypto into hard currency without letting the public touch it.

But here’s the twist: miners can’t spend their Bitcoin. They can’t use it to buy a car, pay a freelancer, or order food online. The government takes their coins, converts them to rials, and puts the money into state coffers. Meanwhile, regular Iranians are stuck with a currency that lost over 80% of its value since 2020. So why not just use crypto themselves? Because the state won’t let them.

Payment Gateways Are Shut Down - Except for the Ones the Government Controls

On December 27, 2024, the Central Bank of Iran shut down every cryptocurrency-to-rial payment gateway in the country. That meant apps like Nobitex and Digifin couldn’t let users turn Bitcoin into Iranian rials anymore. Overnight, buying crypto with your bank account became impossible. The move was meant to stop capital flight and protect the rial from further collapse.

But by January 2025, things changed - just a little. The CBI started unblocking exchanges, but only if they used the government’s own API system. That means every transaction, every user ID, every IP address, every amount - all of it flows directly to the Central Bank. No privacy. No anonymity. No freedom. These licensed exchanges are the only legal way to trade crypto for rials, and even then, you need to pass strict KYC checks. You can’t just sign up with a fake name and start trading.

Advertising Crypto Is Now a Crime

In February 2025, Iran went further. It banned all cryptocurrency advertising - online and offline. No YouTube videos. No Instagram posts. No billboards. No flyers in Tehran cafes. No sponsored tweets from crypto influencers. This isn’t just about controlling the market - it’s about controlling the narrative. The government doesn’t want people thinking crypto is a solution to inflation. It wants people to believe the digital rial is the only way forward.

The ban is unusually strict. Even foreign crypto platforms that try to market to Iranians are blocked. VPNs are common in Iran, but even those can’t help you see ads for Binance or Coinbase anymore. The message is clear: crypto is a tool for the state, not the people.

Can You Pay for Something with Bitcoin? Technically, Yes. Practically, No.

There are no official stores in Iran that accept Bitcoin as payment. No restaurants, no online retailers, no taxi services. Even if a shop owner wanted to accept crypto, they’d need a licensed payment gateway - and none are available to the public. The only platforms allowed to process crypto-to-rial trades are the ones owned or monitored by the Central Bank. And those aren’t designed for spending. They’re designed for conversion - and surveillance.

Some Iranians use peer-to-peer (P2P) platforms like LocalBitcoins or Paxful to trade crypto for cash. But even that’s risky. The government monitors P2P activity. If you’re caught trading outside approved channels, you could face fines, account freezes, or worse. In late 2024, authorities raided dozens of illegal mining farms and arrested operators. The same crackdown is creeping into trading.

Why Does Iran Even Allow Mining If It Bans Payments?

It’s a paradox - but a calculated one. Iran is under heavy international sanctions. Western banks won’t process its payments. Foreign currency is hard to get. Crypto mining gives the state a way to earn dollars without touching the global financial system. Miners produce Bitcoin. The government buys it. Then it sells that Bitcoin on international markets for hard currency. It’s a backdoor to the global economy.

At the same time, letting citizens freely use crypto would weaken the rial even more. If people could easily convert their savings into Bitcoin, the rial would collapse faster. So the state allows mining - but locks down spending. It’s a way to extract value from crypto without letting the public escape the system.

The Digital Rial Is the Real Goal

Iran isn’t trying to become a crypto nation. It’s trying to become a digital state - on its own terms. The Central Bank is developing a Central Bank Digital Currency (CBDC) called the "Rial Currency." Unlike Bitcoin, this isn’t decentralized. It’s fully controlled by the government. Every transaction is tracked. Every balance is visible. You can’t mine it. You can’t hide it. You can’t use it to bypass sanctions.

The digital rial is already being tested on Kish Island, a free-trade zone where tourists and foreign businesses operate. The goal? Replace cash, reduce dollar dependence, and create a payment system that can’t be blocked by the U.S. or Europe. But unlike crypto, this system gives the government total control. If you buy something with the digital rial, the state knows exactly what you bought, when, and from whom.

What About Foreign Exchanges? Can Iranians Use Them?

Yes - but it’s risky. Many Iranians use VPNs to access Binance, Kraken, or Bybit. They deposit rials through unofficial channels, buy crypto, and hold it as a hedge against inflation. Some even send crypto to family abroad. But this isn’t legal. The Central Bank considers these transactions violations. In July 2025, Tether froze 42 Iranian-linked addresses worth millions of dollars, many tied to Nobitex users. That’s a warning: international crypto companies are under pressure to cut ties with Iran.

Even if you manage to buy crypto abroad, spending it inside Iran is still nearly impossible. There’s no bridge between foreign wallets and local businesses. You can own Bitcoin, but you can’t use it as money.

Is Crypto a Good Hedge Against Inflation in Iran?

For many Iranians, yes - but not because it’s legal. It’s because the rial is failing. The currency has lost more than 80% of its value since 2020. Inflation is over 50%. Salaries don’t keep up. Savings vanish. Crypto, especially Bitcoin and stablecoins like USDT, offers a way to preserve value. People buy it in small amounts, hold it in cold wallets, and wait. It’s not a payment method. It’s a savings tool.

But it’s not safe. The government can freeze your account. It can shut down your internet. It can arrest you for using a VPN. And if you’re caught trading without a license, you could face jail time. The risk is real. But so is the need.

What’s the Future?

Iran’s crypto policy is a balancing act. On one side: sanctions, inflation, and a desperate population. On the other: state control, currency stability, and geopolitical pressure. The government isn’t trying to ban crypto - it’s trying to own it. Mining is allowed because it brings in dollars. Payments are blocked because they threaten the rial. The digital rial is the endgame: a state-controlled digital currency that looks like crypto but acts like a surveillance tool.

For now, if you’re in Iran and you want to use crypto to pay for something, you’re out of luck. The system isn’t built for that. But if you want to mine it, sell it to the government, or hoard it as a secret savings plan - that’s still possible. Just don’t expect to buy coffee with Bitcoin anytime soon.