Countries under Western sanctions are rapidly increasing their use of cryptocurrencies to escape financial pressure. According to a Wall Street Journal (WSJ) report based on data from companies tracking cryptocurrency flows, sanctioned countries, led by Iran, Russia, and North Korea, conducted approximately $100 billion in cryptocurrency transactions in 2025 alone. This figure is eight times the previous year's transaction volume.
The newspaper reported that Western officials and digital currency analysis firms allege Iran and Russia are using cryptocurrencies to purchase drones and weapon parts. Russia is also said to have paid the salaries of sailors smuggling its sanctioned crude oil using this method. North Korea, meanwhile, is stated to have used digital assets to procure fuel and military equipment.
Cybercrime allegations against North Korea
The report stated that Western officials accuse Pyongyang of stealing cryptocurrency through "cybercrimes," while North Korea dismisses these allegations as "absurd slander" and considers them an extension of Washington's hostile policy.
Russia announces alternative mechanism
Kremlin spokesman Dmitry Peskov told the WSJ that Russia considers international sanctions against it illegal under international law. Peskov noted that Moscow has "developed and expanded alternative mechanisms that allow the economy to function normally." The report added that Tehran did not respond to a request for comment on the matter.
Sanctions moves from the US and UK
While Washington has temporarily suspended sanctions on Iranian oil amid ongoing negotiations for a possible peace deal with Iran, it continues to view sanctions as a primary pressure tool against global rivals. The US Treasury imposed sanctions on four platforms last June, including Iran's largest cryptocurrency exchange Nobitex. US Treasury Secretary Scott Bessent announced the seizure of $1 billion in cryptocurrency belonging to Iran.
In the UK, authorities blacklisted HTX, one of the world's largest cryptocurrency platforms, in May on suspicion of supporting the Russian government. HTX announced it would work with officials to address concerns.
The WSJ noted that because much of the sector is unregulated and transactions are anonymous, establishing tight control over this market is nearly impossible.
