US Treasury Warns of Sanctions Risk for Cryptocurrency Payments to Iran

The US Treasury's Office of Foreign Assets Control (OFAC) has issued an advisory warning against paying Iran's demanded passage fees through the Strait of Hormuz with cryptocurrency.

According to the advisory, using digital assets to settle these fees directly supports a sanctioned entity, and non-U.S. firms face secondary sanctions if they facilitate such payments.

The advisory emphasizes that OFAC expects global shipping companies, banks, and crypto firms to implement robust sanctions screening protocols to prevent circumvention of existing sanctions through new technology.

The Strait of Hormuz is a critical chokepoint for global oil and gas shipments, with approximately 20% of the world's petroleum passing through it. Iran has historically used its position to demand passage fees from vessels, often targeting ships flagged to nations not aligned with US policy.

The advisory marks a significant escalation in OFAC's efforts to regulate the crypto industry, signaling that the agency will aggressively pursue sanctions evasion in the space.