On March 4th, it was reported that despite recent escalations in Middle Eastern tensions and airstrikes, Iran’s cryptocurrency system has not collapsed as some observers predicted. Instead, it has highlighted the key role of stablecoins in the country’s financial system. Several blockchain analysis firms noted that even during significant internet disruptions and sharp declines in market trading, USD-pegged USDT remains an important channel for Iranian residents and institutions to transfer value.
Before the conflict erupted, Iran’s crypto market had already formed a sizable gray economy. According to estimates from TRM Labs and Chainalysis, Iran’s crypto trading volume could reach $8 billion to $10 billion by 2025. Blockchain data also shows that the Central Bank of Iran previously purchased approximately $507 million worth of USDT to bypass restrictions of the traditional international banking system. Some research institutions believe that certain crypto transactions are linked to wallet addresses associated with the Islamic Revolutionary Guard Corps, which have transferred about $3 billion since 2023.
After the airstrike on February 28th, internet connectivity in Iran dropped by about 99%, and crypto market trading volume immediately fell by roughly 80%. Some platforms paused withdrawals or limited fund flows, while others processed transactions in batches to reduce systemic risk. Meanwhile, the Central Bank of Iran also ordered a suspension of USDT-to-Toman trading. Toman is a common denomination of the Iranian rial, and this trading pair has long been viewed as a key channel for residents to convert their local currency into dollar-valued assets.
Amid escalating tensions, large amounts of funds attempted to shift from the rial to USDT, making this trading pair a real-time indicator of currency devaluation pressure. The suspension of trading was seen as an emergency measure similar to shutting down the foreign exchange market to slow down the local currency’s depreciation. After trading resumed, market liquidity declined significantly, causing brief price dislocations, but the overall trading system remained intact.
TRM Labs stated that these changes are more like a “stress test” rather than a systemic collapse. During the internet outage, ordinary users faced restrictions accessing crypto networks, but some institutions may have continued to operate funds through alternative channels.
Meanwhile, the Financial Action Task Force (FATF) released a report on March 3rd emphasizing that the proportion of stablecoins in illegal transactions is rising. The report cited Chainalysis data suggesting that by 2025, stablecoins could account for up to 84% of illegal crypto transactions, and recommended that countries strengthen regulation of stablecoin issuers and wallet addresses.
Currently, there are over 250 types of stablecoins worldwide, with a total market cap exceeding $300 billion. Analysts believe that the Iran case highlights the dual nature of stablecoin systems: on one hand, they facilitate cross-border payments; on the other, they can serve as important tools to bypass sanctions. As geopolitical conflicts continue, the influence of this financial technology is expanding.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Iran reiterates that it will blockade the Strait of Hormuz as a countermeasure and will study opening other potential fronts
Gate News news, on April 1, the Office of Iran’s Supreme Leader posted on social media the first remarks of Supreme Leader Mojtaba Khamenei, released that day, reaffirming that Iran will continue to use the blockade of the Strait of Hormuz as a countermeasure. The Office of Iran’s Supreme Leader also said in the remarks that Iran is studying ways to open up “other potential fronts,” and believes that the adversary in the relevant area “lacks experience and has clear weaknesses.” The remarks stated that if the fighting continues, after taking into account the relevant factors comprehensively, “these fronts will be activated.” (CCTV News)
GateNews5h ago
Insider: U.S. Vice President Vance says Trump has lost patience with the Iran issue
Gate News message, April 1, according to sources, U.S. Vice President Vance held talks with an "intermediary" on the Iran conflict on Tuesday. U.S. President Trump instructed Vance to privately convey that, as long as certain U.S. demands are met—such as reopening the Strait of Hormuz—he is willing to accept a ceasefire. Vance relayed Trump's "tough" message, saying that Trump has lost patience and warning that unless Iran reaches an agreement, pressure on Iran's infrastructure will increase.
GateNews6h ago
The Strait of Hormuz remains restricted for navigation, and Brent crude oil futures are holding above $100
Gate News message, April 1, although expectations of a de-escalation in the Iran war situation have warmed somewhat, navigation through the Strait of Hormuz is still constrained, and tensions have not been fully eased. Brent crude oil futures (the international crude benchmark price) are currently holding at around $100 per barrel, indicating that the market is still waiting to see whether the situation improves. Forex.com market analyst Fawad Razaqzada noted that in the absence of a clear timetable for the Strait of Hormuz to reopen and sufficient credibility, oil prices are unlikely to sustainably fall below $100.
GateNews7h ago
St. Louis Fed President Musalem: The Iran war energy shock will raise overall inflation
Gate News reports that on April 1, the President of the St. Louis Fed, Mousalem, stated on Wednesday at an event hosted by the American Enterprise Institute in Washington that energy shocks related to the war with Iran will definitely impact overall inflation and may exert pressure on core prices. Mousalem said, "I expect increases in commodity prices to feed into overall inflation on a one-for-one basis, and there will be a period of high overall inflation." He added, "Core inflation will also be affected to some extent by pass-through; I will closely monitor the degree of pass-through and the correlation between the two."
GateNews7h ago
Google Quantum AI Warns Crypto Wallet Encryption May Be Easier to Break Than Expected
Google Quantum AI warns that 256-bit elliptic curve cryptography may be broken in minutes with under 500,000 qubits, a 20-fold reduction from prior estimates. This urges the crypto sector to expedite the transition to post-quantum cryptography.
CryptoNewsFlash7h ago
Trump: The U.S. will withdraw from Iran soon but without a timeline, saying Iran will not have nuclear weapons
Gate News message. On April 1, U.S. President Trump issued a statement saying that the United States will soon withdraw from Iran, but will not provide a specific timetable. Trump said Iran will not have nuclear weapons and does not want nuclear weapons; the United States does not care about nuclear materials issues and will monitor it via satellites.
GateNews7h ago
