According to a new report from blockchain analytics firm Chainalysis, Iran's cryptocurrency ecosystem reached an estimated $7.78 billion in total value received in 2025, marking a sharp increase from the previous year. This growth was fueled by two primary drivers: citizens seeking financial refuge during mass protests and state-linked actors, including the Islamic Revolutionary Guard Corps (IRGC), navigating international sanctions.
The surge in civilian Bitcoin use was particularly pronounced during late December 2025, when nationwide protests intensified and authorities imposed internet blackouts. During this period, withdrawals from cryptocurrency exchanges to personal wallets spiked as access to state-controlled financial channels became unreliable. Bradley Rettler, a senior fellow at the Bitcoin Policy Institute, explained this shift toward self-custody: "In countries where citizens fear their government, worry about financial censorship, or see their local currency inflating, Bitcoin provides an alternative... When any of those things increase, we should expect Bitcoin ownership to increase."
Chainalysis emphasized that cryptocurrency serves as both a "sanctions workaround" and a way for citizens to "opt out of a failing system" amid inflation rates of 40-50% and a collapsing Iranian rial. The report contextualizes this trend within Bitcoin's historical use by activists and dissidents, noting similar increases in usage during crises like COVID-19 and the wars in Ukraine and Palestine.
Simultaneously, the report documented a significant rise in state-linked crypto activity. Addresses associated with Iran's IRGC accounted for more than 50% of all crypto value received in the country during the final quarter of 2025, based on Chainalysis's analysis of sanctioned wallets. The firm noted that this figure likely understates the true scale of state involvement, as the analysis focused only on addresses already identified by U.S. and Israeli authorities, excluding unidentified intermediaries and shell entities.
Rettler commented on the IRGC's adoption, stating it "signals to the rest of the world and to Iranian citizens that [Bitcoin] is valuable." He added that this dynamic creates a feedback loop: "Political leaders will acquire Bitcoin because of its potential as an investment, but that in turn prompts the citizens of that country to learn more about it and want to acquire it themselves."
The findings from Chainalysis's 2025 Geography of Cryptocurrency Report suggest that Bitcoin has become an entrenched part of Iran's financial landscape, serving dual purposes for individuals preserving wealth and sanctioned actors navigating restrictions.
