 ▲ Iran, Bitcoin (BTC), Tether (USDT), Cryptocurrency Trading / ChatGPT-generated image |
As geopolitical tensions in the Middle East intensified to extreme levels, cryptocurrency trading volume in Iran plunged by around 80%. However, an analysis suggests that the country’s trading infrastructure remains structurally sound and has entered crisis management mode.
According to cryptocurrency-focused media outlet The Block on March 3 (local time), blockchain analytics firm TRM Labs reported that trading volumes at Iranian cryptocurrency exchanges fell by approximately 80% between February 27 and March 1. The collapse in trading activity is largely attributed to sweeping internet shutdown measures imposed by the Iranian government following U.S. and Israeli airstrikes that began on February 28. Despite the sharp contraction in trading, TRM Labs assessed that Iran’s cryptocurrency infrastructure continues to operate stably under risk management protocols.
Major exchanges, including Iran’s largest platform Nobitex, shifted into crisis response mode immediately after the airstrikes, processing withdrawal requests in batches or temporarily suspending them. Although market liquidity depth has thinned, exchanges prioritized preventing systemic failure by distributing risk guidance to users. In particular, several exchanges temporarily halted trading pairs between Tether (USDT) and the Iranian toman in accordance with directives from the Central Bank of Iran, aiming to curb the revaluation of fiat currency amid heightened volatility.
Iran’s cryptocurrency economy has grown into one of the largest markets in the world, processing over $11 billion in trading volume from the beginning of 2025 to the present. Following the airstrikes, approximately $3 million in additional inflows and outflows were observed on Nobitex, but TRM Labs viewed this activity as within the range of normal operations rather than a signal of large-scale capital flight. The report evaluated the current market contraction as a temporary suspension of trading caused by the internet blackout rather than an exodus of capital.
Analysts have also warned that factions linked to the Iranian regime could take advantage of the turmoil to reposition funds through cryptocurrency infrastructure. TRM Labs identified over 5,000 addresses believed to be connected to the Islamic Revolutionary Guard Corps (IRGC), through which approximately $3 billion has moved since 2023. Although about 95% of overall cryptocurrency flows within Iran are estimated to be driven by individual investors, it is evident that the nation’s crypto infrastructure serves as a key channel for sanctions evasion and fund transfers.
Iran’s cryptocurrency market is currently adopting a defensive stance amid the dual pressures of external military conflict and internal communication shutdowns. Each partial resumption of internet trading has led to temporary price distortions caused by insufficient liquidity provision, yet the overall operational capacity of the system remains intact. Global market participants are closely monitoring how further developments in the Middle East military situation may affect Iran’s crypto liquidity and international capital flows.
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