Nobitex Sees Large-Scale Outflows After US-Israeli Strikes

The recent escalation of tensions between the US and Israel has had a ripple effect on the cryptocurrency market in Iran. According to an analysis by Elliptic, Nobitex, the largest crypto exchange in Iran, experienced a sharp increase in outflows following the first US-Israeli strikes on Iran.

Nobitex allows users to convert their local currency, the rial, into cryptocurrencies and withdraw them to external wallets. This feature makes it an attractive option for Iranians looking to bypass traditional banking systems and protect their wealth during times of economic uncertainty. The exchange has been flagged in the past for its potential link to financial activities connected to the Islamic Revolutionary Guard Corps (IRGC).

The recent surge in outflows is consistent with capital flight typically observed during times of global tension and sanctions. This trend is also reflected in previous instances, such as a similar surge in January following widespread protests in Iran and an internet blackout imposed by authorities.