Iran is evading Western-imposed sanctions by openly offering to sell weapon systems for payments in cryptocurrencies, pitting a decentralized financial system against national security concerns.
Mindex, Iran’s Ministry of Defence Export Centre, has put the word out that it is prepared to negotiate military contracts for digital currency payments, in addition to Iranian rials and barter arrangements, the Financial Times reported, citing an analysis of promotional documents and payment terms.
A first
The theocratic state, which is grappling with severe international sanctions and domestic economic turmoil, including record hyperinflation and a collapsing national currency, made the offer on crypto payments in the past year. It appears to be the first known case of a nation state being willing to accept digital payments for the sale of strategic military hardware, the FT said.
Mindex’s weapons for sale include ballistic missiles, drones, warships, as well as small arms, rockets and anti-ship cruise missiles.
Delivery assurance
Here’s what the FT detailed from the Mindex website, which is available in multiple languages:
- Midex claims client relationships with 35 countries
- Weapons on offer include Emad ballistic missiles, Shahed drones, Shahid Soleimani-class warships and short-range air defence systems.
- Buyers must agree to conditions about how the weapons are used “during a war with another country,” with negotiable terms
- Export centre uses an online portal and a virtual chatbot to help customers
- In the “frequently asked questions” section, Mindex gives an assurance that purchased items will be delivered despite sanctions, stating “there is no problem in implementing the contract,” which will reach the customer “as soon as possible.”
- Prices are not publicly listed, but customers are informed that payment can also be arranged in the destination country, and that in-person inspections of the goods can be done in Iran, “subject to approval from security authorities”.
Neutral vs national security
Iran’s use of blockchain and decentralised finance leverages the so-called “neutral technology” of digital payments to cross borders anonymously and swiftly, the very qualities that proponents tout as being a force for good that promotes financial inclusivity and breaks the chokehold of large financial institutions.
For a country that has been economically isolated by the US and EU, cryptocurrencies have been a lifeline. “Digital assets remain a vital economic artery for sanctioned entities engaged in procurement and covert operations, as well as for ordinary Iranians seeking stability amid inflation,” a report by TRM Labs said.
Snapback triggered
The blockchain intelligence company estimated that total cryptocurrency flows involving Iranian entities between January and July 2025 fell to $3.7bn, an 11% decrease compared with the same period in 2024. “This downturn coincided with a breakdown in nuclear negotiations, a 12-day conflict with Israel beginning June 13, and widespread power outages in Iran — driven by a combination of Israeli kinetic and cyber operations, as well as regime-initiated shutdowns,” it said.
Another sanctioned nation, Russia, has also used a similar diversion to skate past traditional banking and trading systems.
Iran faces further penalties after it defied ultimatums by Western countries to return to nuclear compliance. In August, France, Germany, and the United Kingdom triggered the "snapback" mechanism at the United Nations Security Council to reimpose international sanctions on Iran.
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