Iran has taken a significant step by allowing foreign governments to purchase advanced weapons systems using cryptocurrency. This strategic decision appears to be a calculated move to evade stringent financial sanctions imposed by the United States and European nations. According to a report by the Financial Times, Iran”s Ministry of Defence Export Center, known as Mindex, has established payment protocols permitting military contracts to be fulfilled in digital currencies, in addition to barter methods and transactions in Iranian rials.
Promotional materials examined by the Financial Times indicate that this policy has been operational for approximately a year. Mindex is a state-operated entity that oversees Iran”s arms sales abroad and claims to maintain client relationships with 35 different countries. The organization”s inventory includes a range of military hardware, such as Emad ballistic missiles, Shahed drones, Shahid Soleimani-class warships, short-range air defense systems, small arms, rockets, and anti-ship cruise missiles.
The authenticity of Mindex”s website has been confirmed through various methods, including archived data and technical scrutiny. The site is hosted on a domestic Iranian cloud service, which is under U.S. Treasury sanctions and has been linked to Iranian intelligence operations. Potential buyers are directed to an online portal featuring a virtual chatbot, and a section dedicated to frequently asked questions explicitly addresses the risks associated with sanctions. It asserts that Iran”s strategies for “circumventing sanctions” guarantee the successful execution of contracts and the delivery of goods.
Though pricing details are not publicly available, Mindex does provide options for in-person inspections in Iran, contingent upon security clearance. The readiness to accept cryptocurrency as payment is among the first documented instances of a nation-state offering military equipment in exchange for digital assets. Western officials have cautioned that entities engaging in traditional financial transactions with Iran may face exclusion from U.S., EU, and U.K. financial systems.
Previously, U.S. authorities have accused Iran of utilizing cryptocurrencies to facilitate oil transactions and to transfer substantial sums beyond conventional banking systems. In September, the U.S. Treasury sanctioned individuals associated with Iran”s Revolutionary Guards for operating a crypto-based “shadow banking” network. This disclosure arises amid heightened pressure from Western powers on Tehran concerning its nuclear ambitions.
In 2024, Iran was ranked 18th globally in terms of major arms exports, with analysts noting Tehran”s expanding role as Russia”s capacity to export diminishes following the conflict in Ukraine. Despite the sanctions, domestic cryptocurrency activity in Iran continues to flourish, with around 5 million Iranians reportedly active as traders. Notably, inbound cryptocurrency volumes saw an increase of 11.8% year-over-year in 2025. The presence of several local exchanges, such as Bit24, Excoino, and Nobitex, underscores the growing adoption of digital assets within Iran”s economy.
Despite the setback from the $80–90 million hack of Nobitex in June 2025, the momentum for cryptocurrency adoption in Iran persists, illustrating how entrenched digital assets have become in the nation”s heavily sanctioned economic landscape.
