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Iran is exploring crypto payments for overseas arms deals, in a move that could help it keep weapons trade flowing even as the US and Europe tighten financial restrictions.
The Financial Times (FT) reported that Iran’s Ministry of Defence Export Center, known as Mindex, is prepared to negotiate contracts that allow payment in “digital currencies,” alongside barter arrangements and Iranian rials.
The offer appears aimed at reducing exposure to the dollar-based system where sanctions are enforced, as scrutiny over Iran’s weapons programs and regional activity remains high.
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According to FT, the Mindex materials suggest Iran is openly signaling that crypto can be used to settle payments for strategic military hardware. This would be a rare public stance for a nation-state in this kind of trade.
In practice, crypto can move value across borders without relying on traditional correspondent banking rails that sanctions are designed to control, even though crypto-to-fiat offramps can still be targeted.
US officials have warned that sanctioned networks already use “overseas front companies and cryptocurrency” to evade restrictions and move funds linked to Iran’s military and government interests.
The report said Mindex advertises a catalogue that includes Emad ballistic missiles, Shahed drones, Shahid Soleimani-class warships, and short-range air defense systems, and claims relationships with customers in dozens of countries.
It also describes an online portal and a chatbot to guide buyers through the process, with a section addressing sanctions concerns and asserting there is “no problem” executing contracts despite restrictions.
FT said it verified the site’s authenticity using archived versions, registration data and technical infrastructure linked to an Iranian domestic cloud provider that is under US Treasury sanctions.
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US sanctions on Iran are designed to restrict access to the global financial system for entities linked to ballistic missiles, drones, weapons exports and military procurement. These measures rely heavily on controlling dollar-based payments, international banks and trade finance channels.
From Washington’s perspective, cryptocurrency creates an alternative way to move money that sits outside the traditional banking system. It complicates oversight by reducing reliance on banks that traditionally act as choke points.
This can reduce the effectiveness of sanctions that rely on US dollar transactions, bank intermediaries and close monitoring of international trade payments.
On Sept. 16, 2025, Treasury said Iranian “shadow banking” networks evade sanctions “by laundering money through overseas front companies and cryptocurrency,” and said it would “continue to disrupt these key financial streams.”
On Dec. 30, 2025, Treasury said it was targeting Iran- and Venezuela-linked actors connected to Iran’s UAV trade, adding it would keep acting to deprive enablers of Iran’s military-industrial complex of access to the US financial system.
Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley said the US is “holding Iran and Venezuela accountable” for what it called the “proliferation of deadly weapons,” and warned of continued action against networks tied to Iran’s military programs.
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This story was originally published by TheStreet on Jan 1, 2026, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
