Iran is using Bitcoin mining bypass economic sanctions imposed by US

A new study has found that Iran is using Bitcoin mining to bypass and reduce the effect of economic sanctions imposed by the US.

@Jak_ConnorTT
Published Mon, May 24 2021 9:02 AM CDT   |   Updated Fri, Jun 18 2021 10:55 PM CDT

A blockchain and analytics firm has published a new study that reveals Iran is using Bitcoin (BTC) mining to bypass economic sanctions imposed by the US.

Iran is using Bitcoin mining bypass economic sanctions imposed by US 01 | TweakTown.com

The United States has implemented a close to total economic embargo on Iran, as well as banning all imports from the country. To get around these sanctions, Iran has seemingly decided to turn towards Bitcoin mining as a way of converting the country's energy potential into a commodity it can then sell for profit.

According to estimates from Elliptic, a blockchain, and analytics firm, Iranian BTC miners sell their BTC to Iran's central banks. Miners are paid in BTC, which can then be used to purchase other things such as imported goods. Iran is using this process as a way to get around official sanctions and essentially sell the country's energy potential, but is it legal?

The study states, "The Iranian state is therefore effectively selling its energy reserves on the global markets, using the Bitcoin mining process to bypass trade embargoes."

Adding, "Iran-based miners are paid directly in Bitcoin, which can then be used to pay for imports - allowing sanctions on payments through Iranian financial institutions to be circumvented."

As for it being legal, Elliptic recommends financial firms that are opening up to cryptocurrency services should consider the potential sanctions that have been imposed on Iran before accepting payment. For more information on this story, check out this link here.

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest news. Jak's love for technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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