Can you use Bitcoin or Ethereum to pay for goods in Iran? The short answer is: not really. But it’s not that simple. While the Iranian government doesn’t outright ban cryptocurrency, it has built a system so tightly controlled that using crypto for everyday payments is practically impossible for most people.

What’s Actually Allowed?

Iran lets you mine cryptocurrency. Yes, really. Since 2019, the government has encouraged mining because it brings in hard currency - Bitcoin, Ethereum, and others - that can be sold to the Central Bank of Iran (CBI). Licensed miners must use government-approved hardware, pay fixed electricity rates, and hand over all their mined coins to the state. In return, they get access to cheap power, which is why Iran used to be one of the top five countries for Bitcoin mining, responsible for nearly 4.5% of global activity.

But mining isn’t the same as spending. You can’t walk into a Tehran grocery store and pay with Bitcoin. You can’t tip a delivery driver with Ethereum. You can’t even buy a SIM card online with crypto. The government shut down all direct crypto-to-rial payment gateways in December 2024. That means no app, no website, no merchant can let you convert crypto into Iranian rials to spend locally.

The Only Way to Trade Crypto: Government-Approved Exchanges

There are a few platforms still operating, like Nobitex and Hamkaran. But they’re not independent. They’re state-monitored. To use them, you need to link your real identity, submit your bank details, and agree to let the Central Bank track every transaction - down to the exact time, amount, and IP address. These exchanges are the only legal bridge between crypto and rials, and even then, they only allow you to sell your crypto for rials, not buy goods with crypto.

The CBI also blocks foreign-mined coins from being used in domestic transactions. So even if you bought Bitcoin overseas, you can’t use it to pay someone in Iran unless you first sell it through one of these licensed exchanges. And even that’s not guaranteed - the CBI can freeze transactions at any time.

Why the Strict Rules?

Iran’s economy has been under heavy sanctions for years. The rial has lost over 80% of its value since 2018. People naturally turned to crypto as a way to protect their savings. But the government didn’t want citizens bypassing the financial system entirely. So instead of banning crypto, they took control of it.

By forcing all transactions through government systems, they can:

• Monitor who’s buying crypto
• Prevent money laundering
• Stop capital flight
• Collect taxes on crypto sales
• Use mined coins as a foreign currency reserve

It’s not about stopping crypto. It’s about owning it.

Crypto Advertising Is Now Illegal

In February 2025, Iran went further. It banned all cryptocurrency advertising - online and offline. No more YouTube videos. No more billboards. No more Instagram posts promoting exchanges or wallets. This was a clear signal: the government doesn’t want the public getting excited about crypto. They want people to use the digital rial, not Bitcoin.

The Digital Rial: Iran’s Answer to Crypto

Iran is building its own digital currency - called Rial Currency - a Central Bank Digital Currency (CBDC). Unlike Bitcoin, it’s not decentralized. It’s not mined. It’s not anonymous. It’s just the rial, but in digital form, controlled entirely by the Central Bank. The pilot program is already running on Kish Island, a free-trade zone. The goal? Replace foreign currencies like the dollar and euro with a state-backed digital alternative.

If you’re thinking, “So Iranians are switching to the digital rial?” The answer is: not yet. Most people still trust crypto more than their own government’s currency. The rial keeps falling. The digital rial doesn’t offer any real advantage - no privacy, no global access, no hedge against inflation. So while the government pushes it hard, adoption is slow.

What About Using Foreign Exchanges?

Many Iranians still use Binance, Kraken, or Bybit through VPNs. They buy crypto overseas, hold it, and then sell it through Iranian exchanges when they need cash. This is how most people actually interact with crypto - not to pay for things, but to save money.

It’s risky. The government can cut off internet access during protests or crackdowns. In 2024, power outages hit mining hubs hard - and not just because of energy shortages. Authorities raided underground mining farms, seizing equipment and arresting operators. The message was clear: if you’re not playing by our rules, you’re breaking the law.

International Pressure Is Real

In July 2025, Tether froze 42 Iranian-linked addresses - one of the largest single actions ever taken against crypto tied to Iran. Many of those addresses were connected to Nobitex. This wasn’t an accident. It was a coordinated move by U.S. and European regulators to cut off Iran’s crypto-based sanctions evasion.

The Islamic Revolutionary Guard Corps (IRGC) has long been suspected of using crypto to move money. Wallets linked to IRGC-affiliated entities have been flagged globally. That’s why even if you’re just a regular user, your transactions might get caught in the net.

The Bottom Line

Crypto payments? Not allowed. Not really. You can’t use them to buy anything. You can’t pay bills, order food, or rent an apartment with crypto in Iran. The only legal path is through government-controlled exchanges - and even then, you’re not spending crypto. You’re selling it for rials.

Mining? Still legal - but only if you’re licensed, monitored, and forced to hand over your coins. Advertising? Banned. Using foreign exchanges? Common, but risky. The digital rial? Being pushed hard, but no one trusts it.

Iran’s approach isn’t about banning crypto. It’s about absorbing it. The state wants to control every step - from mining to trading - so it can profit from it, monitor users, and stop people from escaping the rial. For everyday Iranians, crypto isn’t a payment tool. It’s a savings tool. And even that’s getting harder.

What’s Next?

The rules are still changing. In early 2026, rumors suggest Iran might allow limited peer-to-peer crypto payments - but only if they’re routed through a government-approved blockchain ledger. That would mean every transaction is recorded and visible to authorities.

For now, if you’re in Iran and you want to use crypto, your best bet is to buy it, hold it, and sell it when you need cash. Don’t try to spend it. Don’t advertise it. Don’t mine without a license. And don’t assume the system is stable - because in Iran, crypto policy shifts faster than the rial’s value.