OFAC's new sector-wide determination targets any company or individual operating in Iran's digital asset economy, not just named exchanges. The broader authority follows $100M in alleged crypto oil payments by a UAE-based broker.
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The U.S. Treasury expanded sanctions to Iran's digital asset sector on Aug. 24, giving the Office of Foreign Assets Control broader authority to target foreign companies and individuals supporting the country's cryptocurrency industry.
The measure accompanied sanctions against nearly 60 entities, individuals and vessels across Iran-linked nuclear, missile, cyber and oil networks. Treasury also accused UAE-based broker Ivan Obukhov of processing more than $100 million in cryptocurrency for oil sales linked to Iran's Islamic Revolutionary Guard Corps-Quds Force.
The new OFAC determination places digital assets among five additional sectors covered under Executive Order 13902. The others are technology, gold, aviation and shipping.
OFAC can now sanction any person determined to operate in Iran's digital asset sector or provide services supporting it, regardless of where that person is located. The determination took effect on Aug. 24, according to OFAC's official notice.
“The Iranian regime increasingly turns to cryptocurrency as a tool of choice for sanctions evasion,” Treasury alleged.
The determination does not automatically sanction every crypto company serving Iranian users. OFAC must identify and designate particular parties before blocking measures apply. Participation in the sector can now serve as a basis for future designations.
Treasury alleged that Obukhov, a Ukrainian national based in the UAE, worked as a broker for vessels carrying Iranian oil. It said he facilitated shipments for Iran's military and associated groups.
Since 2023, Obukhov allegedly processed more than $100 million in cryptocurrency payments to facilitate oil sales for the IRGC-Quds Force, according to Treasury's release.
“Obukhov has facilitated Iranian oil shipments for the Iranian military and its proxies,” Treasury claimed.
OFAC also sanctioned Foscom FZE, the UAE-based company Obukhov owns and manages. Treasury said Obukhov purchased the company in 2022 and used it in his brokerage activities.
The government did not publish wallet addresses, transaction hashes, token breakdowns or named counterparties supporting the $100 million figure. The amount remains a Treasury allegation rather than an independently verified on-chain total.
All property and interests in property belonging to designated parties must be blocked when they enter the United States or come under the control of a U.S. person. Companies owned 50% or more by blocked parties are also covered.
U.S. persons generally cannot transact with designated parties unless OFAC issues an authorization. Foreign financial institutions that knowingly facilitate major transactions may also face restrictions on correspondent or payable-through accounts in the United States.
The expanded authority reaches beyond Iranian exchanges. Overseas brokers, payment processors, wallet operators and technology providers could face sanctions if OFAC determines they operate in, or provide services supporting, Iran's digital asset sector.
The action forms part of a wider campaign Treasury calls Operation Economic Outcast. U.S. officials said foreign governments would receive defined timelines to close identified Iran-linked activities. The public announcement did not provide a universal deadline.
The latest action follows several designations targeting named crypto businesses. In June, OFAC sanctioned Nobitex, Wallex, Bitpin and Ramzinex, extending a crackdown on an alleged $4 billion sanctions-evasion network.
OFAC later targeted Shelbit and Aban Tether on Aug. 7. Treasury accused the two exchanges of processing approximately $5 million involving sanctioned Iranian platforms and other restricted parties.
The earlier actions targeted identifiable exchanges and transactions. The new sectoral determination is broader because it creates a legal basis for future sanctions based on participation in Iran's digital asset economy.
Crypto exchanges and compliance providers will now need to monitor OFAC designations, connected wallet addresses and ownership structures. Treasury said the Aug. 24 measures begin a sustained enforcement campaign.
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