Iran, Russia and North Korea have significantly increased their use of cryptocurrency to counter sanctions imposed by the US and Western countries. According to a Wall Street Journal (WSJ) report based on data from companies that track crypto flows, these countries conducted approximately $100 billion worth of virtual currency transactions in 2025 alone. This amount is exactly eight times the transaction volume recorded in 2024.
Western officials and digital currency analysis firms who spoke to the newspaper suggested that Iran and Russia are using cryptocurrencies to purchase drones and weapons parts. It was also stated that Russia is paying the salaries of sailors who smuggle its sanctioned crude oil using this method. North Korea, meanwhile, was said to be using digital assets to procure fuel and military equipment.
Kremlin statement on alternative mechanisms
Kremlin spokesman Dmitry Peskov told the WSJ that Russia considers the international sanctions against it to be contrary to international law. Peskov noted that Moscow has "developed and expanded alternative mechanisms that allow the economy to function normally." The report added that the Tehran administration did not respond to a request for comment on the matter.
US sanctions Iran's largest crypto exchange
While Washington has temporarily suspended sanctions on Iranian oil amid negotiations for a possible peace deal with Iran, it continues to view sanctions as a key pressure tool against global rivals. The US Treasury imposed sanctions on four platforms last June, including Nobitex, Iran's largest cryptocurrency exchange.
US Treasury Secretary Scott Bessent announced that $1 billion in cryptocurrency belonging to Iran had been seized. Nobitex and another sanctioned platform, Bit Bin, denied allegations that they facilitated illegal activities, arguing that their customers are ordinary individuals.
UK blacklists HTX over suspected Russia links
In May, UK authorities blacklisted HTX, one of the world's largest cryptocurrency platforms, on suspicion of supporting the Russian government. HTX announced it would work with officials to address the concerns.
The WSJ noted that because much of the sector is unregulated and transactions are anonymous, it is almost impossible to establish tight control over this market. The report also stated that Western officials accuse North Korea of stealing cryptocurrency through "cyber crimes," while the Pyongyang administration dismisses these allegations as "absurd slanders" and considers them an extension of Washington's hostile policy.
