On August 24, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) added the digital-asset sector of the Iranian economy to the sectors covered by Executive Order 13902, giving Washington a broader basis to sanction individuals and companies involved in cryptocurrency activity linked to Iran. The determination allows OFAC to target any person it determines operates in Iran’s digital-asset sector or provides services in support of it, regardless of location, but it does not automatically blacklist every Iranian exchange, broker, crypto company, or user. OFAC must still identify and designate specific persons or entities.
The measure was announced alongside nearly 60 designations involving individuals, companies, and vessels tied to Iranian nuclear procurement, cyber activity, and oil-revenue networks. Treasury alleged that Ivan Obukhov, a UAE-based Ukrainian national, processed more than $100 million in cryptocurrency payments since 2023 to facilitate oil sales on behalf of the Islamic Revolutionary Guard Corps-Qods Force. OFAC designated Obukhov and UAE-based Foscom FZE, which Treasury says he owns and manages.
Digital assets were one of five sectors named in the August 24 action, alongside aviation, gold, shipping, and technology, under the broader campaign called Operation Economic Outcast. Treasury said the expanded authority applies to people and companies regardless of where they are located, increasing secondary-sanctions exposure for non-U.S. intermediaries such as over-the-counter desks, brokers, payment providers, and firms supplying technical infrastructure for Iran-linked operations.
China publicly pushed back against the sanctions. Foreign Ministry spokesperson Lin Jian said China-Iran cooperation has consistently been carried out within the framework of international law and should not be subject to interference or disruption. The Chinese response reflects resistance to what Beijing views as extraterritorial overreach by U.S. sanctions, especially as the inclusion of digital assets adds new compliance risks for global exchanges, payment processors, and wallet providers.
For crypto businesses, the decision shifts compliance focus beyond screening known wallet addresses toward understanding who sits behind transactions and what role intermediaries perform. Companies found facilitating Iranian money laundering or sanctions evasion could lose access to the U.S. financial system. Future enforcement cases will show how broadly OFAC intends to apply this sectoral determination.
