New OFAC determination allows sanctions on any foreign entity operating in Iran’s digital asset sector, expanding financial restrictions.
The US Treasury’s Office of Foreign Assets Control has expanded its sanctions authority to target any global entity operating in Iran’s digital asset sector. The move, part of five new sectoral determinations, mirrors existing powers over Iran’s financial and petroleum industries, enabling broader enforcement against sanctions evasion.
The determination follows accusations that Iran increasingly uses cryptocurrency to bypass US restrictions, including $100 million in payments linked to the IRGC’s Qods Force. The Treasury cited a shadow fleet broker among nearly 60 new designations, signaling heightened scrutiny of crypto transactions tied to Iranian entities.
The action is part of Operation Economic Outcast, a campaign aimed at tightening economic pressure on Iran. The Treasury emphasized the regime’s reliance on digital assets as a key tool for evasion, underscoring the sector’s growing role in geopolitical financial risks.