Can Iran Still Fund the IRGC With Crypto? Treasury Just Sanctioned Another Exchange - BeInCrypto

The U.S. Treasury has sanctioned another cryptocurrency exchange, extending a campaign aimed at cutting off funding channels that authorities say have been used to support Iran's Islamic Revolutionary Guard Corps. The designation means U.S. persons are barred from transacting with the platform, and any assets it holds under U.S. jurisdiction are frozen. Foreign institutions that knowingly facilitate significant transactions for the exchange can also face secondary sanctions exposure.

For markets, the action is a reminder that compliance risk in crypto is not static. Exchanges and intermediaries that serve users in sanctioned jurisdictions may face consequences even when transactions settle on public blockchains, because the choke points are often fiat on-ramps, custodians, and banking partners rather than the ledger itself. The practical effect is to raise the cost and complexity of moving value for the entities targeted.

What to watch: whether the sanctioned venue's volumes migrate to other platforms, how major exchanges adjust screening for related wallets, and whether further designations follow. Each step can shift liquidity and compliance burdens across the sector without necessarily halting the underlying activity.