Iran plans to accept cryptocurrencies as a payment method for arms transactions to circumvent sanctions

On January 2nd, according to the Financial Times, Iran is considering accepting cryptocurrency payments in export transactions of advanced weapons such as ballistic missiles and warships to bypass Western sanctions. The Iran Ministry of Defense Export Center (Mindex) stated that it is willing to negotiate various payment methods including digital currencies, barter, and Iranian Rial. This policy was first proposed in 2025 and is regarded as one of the earliest known national-level cases publicly indicating acceptance of cryptocurrency as a payment method for weapons exports. As a state-owned military trade organization, Mindex claims to maintain client relationships with 35 countries, and its website showcases products including missiles, rockets, ammunition, and hovercraft. Against the backdrop of the US, UK, and EU intensifying sanctions on Iran’s nuclear and missile programs, energy exports, and access to the international financial system, Iran is increasingly relying on crypto assets and barter trade. The US Treasury Department disclosed last year that two Iranian citizens assisted in handling over $100 million worth of cryptocurrencies such as Bitcoin between 2023 and 2025, used for Iran’s oil sales, which is seen as part of its “shadow financial network.” Mindex states on its website that, given Iran’s overall policy of evading sanctions, “contract execution poses no issues,” and has pledged to deliver related products as soon as possible.