In a striking development, reports indicate that Iran’s state arms export agency, the Ministry of Defence Export Center (Mindex), has announced its willingness to accept cryptocurrency as a payment method for military hardware. This shift, disclosed by the Financial Times, comes amid ongoing US, UK, and EU sanctions that have constrained traditional financial routes for the Iranian economy.
As revealed in January 2026, Mindex’s export platform showcases an extensive catalogue of military items, including drones, air defense systems, warships, and ballistic missiles. This embrace of digital currency marks a significant departure from Iran’s previously discreet usage of cryptocurrencies, showcasing an evolution in how the country seeks to circumvent financial limitations.
Embracing Crypto to Navigate Sanctions
Reports suggest that Mindex is exploring various forms of payment, including cryptocurrency, Iranian rial, and barter. Potential buyers are encouraged to engage with Iranian officials for contract negotiations, indicating a flexible approach to transactions that might help Iran navigate the restrictions imposed by Western sanctions.
The ongoing sanctions have pushed Iranian authorities to explore multiple channels for facilitating export deals. With banking isolation a pressing issue, the incorporation of cryptocurrency reflects an innovative, if controversial, strategy to sustain economic momentum.
Diverse Military Hardware Available for Purchase
Mindex’s inventory covers a wide array of military equipment, from small arms and ammunition to sophisticated drones and naval vessels. Additionally, reports mention that Mindex claims to have commercial relationships with approximately 35 countries, highlighting the scale at which Iranian exporters operate despite facing systemic financial obstacles.
Historically, Iran has leveraged cryptocurrency to transfer value across borders. US Treasury findings previously linked over $100 million in crypto flows to Iranian oil activities that evaded sanctions. However, accepting cryptocurrencies for arms sales could complicate tracking and compliance efforts, as the nature of certain digital currencies might obfuscate payment trails.
There are growing concerns among global governments and sanctions experts. If arms deliveries occur post-crypto transactions, enforcing compliance will become a formidable challenge. The US has previously sanctioned networks utilizing cryptocurrencies to support Iranian programs, and officials have indicated they will scrutinize these new tactics closely.
Despite the export agency’s assertions that its offers will remain open for negotiation, it remains uncertain how many arms contracts will genuinely be finalized using cryptocurrency. Questions linger about which cryptocurrencies would be accepted, the mechanics of escrow and delivery, as well as potential intermediaries that might play a role in these transactions.
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