Iran Ink’s first import order paid with crypto

Iran is reportedly in the process of facilitating direct imports of crypto, which could allow the nation to circumvent hard-hitting sanctions imposed by the United States.

Local news agency Tasnim reported on Tuesday that the Islamic Republic submitted its first crypto-based order, worth $10 million, but did not specify which digital asset was used for the transaction or what was imported.

Alireza Peyman-Pak, head of the country’s Trade Promotion Organization (TPO), appeared to confirm the order in a chirping and said it could be the first of many. The TPO, which is linked to the country’s Ministry of Commerce, promotes Iran’s non-oil exports.

“By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries,” he wrote (automatically translated).

The US has imposed crippling sanctions on Iran for the past four decades. Under the law, US companies are prohibited from doing business in or with Iran – including servicing crypto investors and traders. The sanctions also prohibit imports.

But Iran can use cryptocurrency mining to avoid sanctions. A study by Elliptic last year found that 4.5% of all bitcoin mining takes place in Iran, allowing the country to earn hundreds of millions of dollars that can be used for import orders and sanctions evasion.

Iran officially recognized cryptocurrency mining as a legitimate business in 2019, after months of speculation, and issued over 1,000 mining licenses to generate capital for the nation.

Also, crypto traders in Iran may not be completely restricted. They may have been able to avoid sanctions by using cryptocurrency exchanges that gave them easy access, recent reports suggest.

Reuters reported in July that Binance, the top crypto exchange by trading volume, continued to allow Iran-based clients despite US sanctions. Chagri Poyraz, global head of sanctions at Binance, said traders may have been able to bypass geographic restrictions by using virtual private networks (VPNs).

Kraken is also reportedly under investigation for allegedly facilitating crypto trading in Iran that violated the same sanctions.

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