During 2024, regimes subject to sanctions moved 15.8 billion dollars in crypto, equivalent to 39% of global illicit transactions. According to an analysis by Chainalysis, countries like Iran and Russia are increasingly leveraging digital assets to evade international financial blocks, while Western authorities are strengthening countermeasures.
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The movements in crypto of regimes under sanctions
“`Iran: cryptocurrencies as a valve for capital flight
In 2024, the use of crypto in Iran increased by 70%, leading to an outflow of 4.18 billion dollars. Bitcoin and stablecoin were used massively during periods of heightened geopolitical instability, such as during tensions with Israel.
In an attempt to stem the capital flight, in December 2024 the Iranian government imposed restrictions on withdrawals from local exchanges. However, these measures did not prevent citizens from resorting to decentralized platforms and peer-to-peer transactions to evade controls.
Russia: cryptocurrencies to withstand sanctions
Russia has intensified the use of cryptocurrencies after the tightening of Western sanctions, making mining legal and encouraging digital transactions with China and India.
The responses from the international authorities were not long in coming:
- OFAC (Office of Foreign Assets Control) has sanctioned the Russian exchange Cryptex, involved in money laundering operations amounting to 5.88 billion dollars linked to cybercrimes.
- Germany has seized 47 Russian exchanges without KYC procedures, accused of financing illicit activities and serving entities affected by sanctions.
The countermeasures of the international community
The West is stepping up efforts to curb the illicit use of cryptocurrencies:
- Operation “Destabilise”: USA, EU, and United Kingdom have dismantled a Russian money laundering network worth billions of dollars.
- New initiatives by the US Department of Justice, aimed at targeting the financial networks of Iran and terrorist groups like Hezbollah.
The use of cryptocurrencies by sanctioned regimes is now a challenge for global financial security.
International authorities are adopting more sophisticated strategies to block illicit flows and limit the effectiveness of cryptocurrencies as a tool for evading sanctions.
