Iran Allows Crypto Payments For Arms Sales Amid Continued Western Sanctions

TLDR

• Iran’s Mindex will accept crypto payments in arms deals with foreign buyers.
• Iran’s crypto offer includes sales of warships, missiles, and ammunition.
• The U.S. Treasury traced over $100 million in crypto linked to Iran’s oil sales.
• Iran maintains military trade ties with at least 35 countries through Mindex.

Iran’s Ministry of Defence Export Center (Mindex) has announced it is ready to accept cryptocurrency payments for military exports, including ballistic missiles and warships. The move is seen as a way for Iran to sidestep longstanding Western sanctions by using digital currencies, barter, or its national currency, the rial.

New Payment Channels Announced by Mindex

Iran’s Ministry of Defence Export Center (Mindex) has opened the door to cryptocurrency payments for military equipment, according to a report by The Financial Times. Mindex, which handles arms exports for the Iranian government, confirmed its willingness to negotiate contracts using digital assets, barter deals, or Iranian rials.

The center posted a statement on its website assuring clients there were “no problems” in fulfilling contracts under the current sanctions regime. Mindex noted that products would be delivered “as soon as possible,” despite ongoing restrictions imposed by Western nations.

This policy has been in place since 2025, making Iran one of the first countries to publicly offer digital currency as a payment option for military exports. The defense export agency lists a wide range of equipment on its official site, including hovercrafts, rockets, missiles, and various types of ammunition.

Western Sanctions Drive Alternative Trade Routes

The United States, United Kingdom, and the European Union have applied multiple layers of sanctions on Iran. These include restrictions on Iran’s nuclear program, its oil sector, and access to international financial systems. As a result, the country has increasingly sought alternatives such as barter and cryptocurrency to conduct trade.

The U.S. Treasury Department reported last year that two Iranian individuals helped the government move more than $100 million through crypto purchases between 2023 and 2025. These transactions were linked to oil sales, which are also heavily sanctioned.

More recently, the U.S. sanctioned 29 vessels suspected of helping Iran covertly ship oil under what has been referred to as a “shadow fleet.” Officials say such networks are used to bypass monitoring systems that track global trade and finance.

Mindex Expands Its Global Reach

According to reports, Mindex maintains defense trade relationships with at least 35 countries. The agency operates as a key state-run entity that connects Iran with foreign buyers interested in its military products. These partnerships continue despite the sanctions imposed on the country’s defense and technology sectors.

While the names of Mindex’s clients have not been officially released, the agency’s operations suggest a continued effort to market military hardware internationally. The use of crypto payments is seen as part of a broader strategy to keep these exports flowing despite financial restrictions.

A message on Mindex’s website reinforces this approach, stating that all contracts can be fulfilled regardless of the sanctions. “Given the general policies of the Islamic Republic of Iran regarding circumvention of sanctions, there is no problem in implementing the contract,” the site reads.

Crypto Becomes a Tool in State-Level Transactions

Although the use of cryptocurrency by sanctioned states is not new, Iran’s public declaration sets it apart. Many governments have experimented with digital assets for various purposes, but few have openly offered to accept them for arms deals.

The move raises new questions for international regulators and enforcement agencies tracking the use of decentralized finance in restricted trade. Officials in the U.S. have said that such activities are part of a broader financial network used by the Iranian government to shield its economy from external pressure.

Analysts say monitoring and controlling crypto transactions in such contexts remains a challenge, especially when private wallets and offshore exchanges are used.

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