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U.S. Sanctions Iran's Top Crypto Exchange Nobitex Over IRGC
OFAC sanctions Iran's largest crypto exchange Nobitex for IRGC-linked sanctions evasion. Exposure, affected assets, and next catalysts for Bitcoin and Ethereum traders.
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The U.S. Treasury's Office of Foreign Assets Control (OFAC) has sanctioned Nobitex, Iran's largest digital asset exchange, along with three other Iranian crypto platforms. The action is part of the Trump administration's Economic Fury campaign targeting the Iranian regime. OFAC designated Nobitex for facilitating sanctions evasion by the Islamic Revolutionary Guard Corps (IRGC), a designated terrorist organization.
Why Nobitex Matters for Crypto Markets
Nobitex is not a minor exchange. It dominates Iran's domestic crypto market, handling the bulk of rial-to-crypto conversions for Iranian traders. The exchange has also been a conduit for Iranian entities to access global crypto liquidity, bypassing U.S. dollar-based financial systems. By sanctioning Nobitex, OFAC is effectively cutting off a key on-ramp for Iranian capital flows into Bitcoin (BTC) and Ethereum (ETH).
The immediate consequence is that any U.S. person or entity interacting with Nobitex now faces secondary sanctions risk. Global exchanges that previously allowed deposits from Nobitex-linked wallets will likely freeze those addresses. This creates a liquidity bottleneck for Iranian traders holding crypto on the platform, potentially triggering a wave of forced selling into a thin order book.
Exposure and Affected Assets
- Nobitex users: Iranian retail and institutional traders with balances on the exchange face withdrawal freezes. The exchange may halt operations or restrict access to U.S.-linked tokens like USDC and USDT.
- Global crypto exchanges: Platforms that processed Nobitex-linked transactions, including peer-to-peer markets, must now screen for sanctioned wallet addresses. Binance, Kraken, and other major exchanges have compliance teams that will scrub their books.
- Bitcoin and Ethereum: Iranian mining operations, which account for an estimated 4-7% of global BTC hashrate, often use Nobitex to convert mined coins into fiat. A disruption to that channel could temporarily increase sell pressure on BTC as miners seek alternative off-ramps at a discount.