Short Description: The U.S. Treasury sanctions two UK crypto exchanges with Iran links, marking its first direct action against digital asset platforms in the Iran sanctions program.
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In a significant escalation of its financial pressure campaign, the U.S. Treasury Department has imposed sanctions for the first time directly on cryptocurrency exchanges linked to Iran. The action targets two UK-registered platforms, Zedcex Exchange Ltd. and Zedxion Exchange Ltd., which are accused of processing billions of dollars in transactions for entities tied to Iran’s Islamic Revolutionary Guard Corps (IRGC). This landmark move by the Office of Foreign Assets Control (OFAC) signals a clear intent to close off digital asset avenues that state actors may use to bypass international sanctions.
The sanctions are part of a broader package targeting Iranian officials and networks accused of suppressing domestic dissent and enriching themselves. Treasury Secretary Scott Bessent stated the U.S. would continue targeting “networks that exploit digital assets to bypass restrictions and finance illicit activity.” The designations notably include Babak Morteza Zanjani, a convicted Iranian businessman allegedly used by the state to launder funds, who is linked to the sanctioned exchanges. OFAC revealed that Zedcex alone has processed over $94 billion in transactions since 2022, highlighting the scale of potential sanctions evasion through crypto channels.
This development follows recent blockchain analysis revealing Iran’s central bank accumulated over $500 million in the stablecoin Tether (USDT), likely to support its national currency or settle international trade. The concurrent actions underscore a growing U.S. focus on the intersection of cryptocurrency and national security, specifically how state actors leverage crypto tools for economic resilience against sanctions. For the finance industry, this sets a precedent for increased regulatory scrutiny on exchanges operating in high-risk jurisdictions.
Short Summary: The U.S. has escalated its Iran sanctions regime by directly targeting cryptocurrency exchanges for the first time, sanctioning two UK-based platforms tied to Iranian financial networks. This historic action aims to block the use of digital assets for sanctions evasion and illicit finance, reflecting a major policy shift as authorities confront state-level adoption of stablecoins and crypto for economic maneuvering.
