Iran sells missiles with Bitcoin! Official statement: arms exports accept cryptocurrency payments

Iran’s Ministry of Defense, Mindex, accepts cryptocurrency payments for arms, using Bitcoin or barter. Maintains relations with 35 countries, exports missiles, ammunition, warships. Official website states “contract execution is no problem.” In 2022, imported $10 million worth of cryptocurrency; by 2025, two Iranians handle over $100 million in BTC for oil sales. US sanctions 29 shadow fleet ships.

Official arms sales platform’s open provocation

Reportedly, Iran’s Ministry of Defense’s “Defense Export Center” (Mindex) announced it is ready to accept cryptocurrency payments for military weapons contracts. Mindex pointed out that, besides digital currencies, barter or Iranian rial settlements are also possible. This payment arrangement was first proposed externally in 2025, and foreign media describe it as one of the few known cases where a government publicly states willingness to use cryptocurrency as payment for arms exports.

As Iran’s official overseas defense sales agency, Mindex reportedly maintains client relationships with about 35 countries. Its official website openly displays various military products, including ballistic missile and rocket systems, assorted munitions, military hovercraft, and other equipment. All related contracts are led by state-owned entities, part of Iran’s external military export framework.

Despite ongoing sanctions, Mindex clearly states on its website that there are no obstacles to executing related arms sales contracts. Mindex writes: “Given the overall policy of the Islamic Republic of Iran to evade sanctions, there are no issues in executing contracts. The products you purchase will be delivered in the shortest possible time.” This statement is seen as an explicit signal from Iran’s government, indicating that circumventing sanctions has become institutionalized.

This kind of public stance is extremely rare. Most sanctioned countries, even when using cryptocurrency to evade sanctions, tend to keep a low profile to avoid attracting international attention. Iran’s explicit mention of “accepting cryptocurrency payments” on its official website shows it believes Western sanctions can no longer prevent its arms trade, and instead chooses to openly challenge them. This posture is both a contempt for US sanctions and a display of confidence to potential buyers.

Iran’s $100 million shadow financial network operation

For years, signs have pointed to cryptocurrency as Iran’s shadow financial tool. In fact, Iran has long used cryptocurrencies over the past several years to evade Western sanctions. The US Treasury Department states that these operations have formed a larger “shadow financial network.” Going back to August 2022, Iran’s Deputy Minister of Industry, Mine, and Trade, Alireza Peyman-Pak, announced that Iran had used $10 million worth of cryptocurrency to complete its first crypto-based import order.

By September 2025, the US Treasury named two Iranian individuals who, between 2023 and 2025, assisted in handling over $100 million in Bitcoin and other digital assets for Iran’s oil sales revenue flow. US officials believe these cases are just a small part of Iran’s overall underground financial system, which continues to expand.

The operation of this shadow financial network is highly complex. Iran sells oil at discounts to buyers like China and Turkey; these buyers pay in Bitcoin to intermediaries, who then wash the Bitcoin through mixers before transferring to wallets controlled by the Iranian government. The entire process bypasses SWIFT and US dollar clearing networks, making it difficult for the US to track and freeze funds.

For a long time, the US, UK, and EU have imposed broad sanctions on Iran, covering its nuclear and missile programs, oil industry, and access to the international banking system. These restrictions have forced Iran to increasingly rely on barter transactions and digital assets like Bitcoin as alternative payment methods. Just last month, the US announced sanctions on 29 ships belonging to the “shadow fleet,” accusing these vessels of secretly transporting oil and petroleum products to evade sanctions.

Regulatory impacts of cryptocurrency arms trade

As Iran’s official defense export units openly accept cryptocurrency as a payment method for arms sales, it indicates that digital assets’ role in Iran’s sanctions evasion has shifted from auxiliary to open and institutionalized. With Western sanctions remaining unresolved, how Iran utilizes cryptocurrencies and alternative settlement mechanisms will continue to be a focus of international attention and regulation.

This trend toward openness challenges global crypto regulation. The US has tried to restrict hostile countries’ use of cryptocurrencies through sanctions on stablecoin issuers, but Bitcoin’s decentralized nature makes it difficult to fully block. From a geopolitical perspective, Iran’s public acceptance of cryptocurrency payments for arms may encourage other sanctioned countries to follow suit, significantly weakening US financial sanctions tools.

For the crypto industry, this is the least desirable scenario. When cryptocurrencies become tools for arms trading, stricter regulation is likely. The US may require exchanges to implement more rigorous KYC and transaction monitoring, or even ban all transactions related to certain countries. Such tightening of regulation ultimately harms ordinary users’ privacy and freedom.

Overall, Iran’s public acceptance of cryptocurrency payments for arms marks a new phase of digital asset geopoliticalization. It demonstrates both the anti-censorship technical features of cryptocurrencies and the risks of their misuse for illegal activities.