OFAC Sanctions Iranian Officials as Crypto Use Gains Traction

• The U.S. OFAC has sanctioned top Iranian officials for violating human rights.
• The sanctions will put more pressure on the Iranian Rial amid the country’s high inflation.
• Sanctions and inflation are pushing Iranians toward crypto and stablecoins.

The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has added top Iranian officials to its sanctions list. The United States will alienate top Iranian officials from global economic activities, including through digital assets, akin to Russia.

President Trump Hits Iran With Sanctions

The United States President Donald Trump has increased pressure on the Iranian government through new sanctions. After reports of thousands of deaths of the protesters, President Trump has used sanctions amid threats of military intervention.

Among the Iranians sanctioned by the U.S. OFAC are: 

• Eskandar Momeni Kalagari – the current Iranian Minister of the Interior, who is accused of murdering thousands of protesters.
• Babak Morteza Zanjani – an Iranian billionaire accused of financially backing major projects that support the Islamic Revolutionary Guard Corps (IRGC) and the Iranian regime.  

“The Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people. This includes the regime’s attempts to exploit digital assets to evade sanctions and finance cybercriminal operations,” Secretary of the Treasury Scott Bessent stated.

Iranian Rial (IRR) Faces Further Threat 

The United States’ sanctions on Iran are expected to add further pressure on the already struggling Iranian rial (IRR). Specifically, new OFAC measures targeting senior Iranian officials are likely to weaken demand for the currency over the coming months and quarters. Nonetheless, the Iranian officials will look to the BRICS movement to attempt to bolster the country’s economic activity.

Furthermore, Iran has a close diplomatic alliance with China and Russia, which forms a major counterforce to the United States. During the past year, China has aggressively sold U.S. Treasury bonds and accumulated Gold and Oil for its reserves.

What’s the Impact on Crypto?

The sanctioning of Iran’s officials will have a positive impact on crypto adoption in this country. Furthermore, cryptocurrencies, including stablecoins, have been operating as informal financial tools as more people attempt to protect their capital from the uncapped inflation and sanctions.

The rise in demand for crypto in Iran will have a bullish impact in the long run. Moreover, the crypto market has proved to be a better replacement for the old financial rail, which is heavily dependent on the local political and geopolitical environment.

Related: $7.8 Billion and Growing: What Iran’s Crypto Data Reveals About Crisis