US Sanctions Crypto Exchanges Amid Iran Tensions
- US sanctions target crypto platforms linked to Iran.
- Zedcex and Zedxion affected by sanctions.
- Impact on USDT transactions and market stability.
The U.S. Treasury sanctioned UK-based Zedcex and Zedxion exchanges on January 30, 2026, for facilitating $1 billion in transactions linked to Iran’s IRGC.
These sanctions mark the first blacklisting of full crypto exchanges for Iran-specific activities, raising stability concerns in Iran’s cryptocurrency ecosystem.
The US Treasury’s Office of Foreign Assets Control sanctioned Zedcex and Zedxion exchanges. These sanctions come as part of efforts to disrupt nearly $1 billion in transactions linked to Iran’s Islamic Revolutionary Guard Corps. Details can be found in the US Treasury Department announcement.
Key entities involved are UK-registered exchanges, cited for facilitating transactions primarily through USDT on the Tron network. The sanctions aim to cut ties between these platforms and illicit Iranian finance activities.
“Treasury will continue to target Iranian networks and corrupt elites that enrich themselves at the expense of the Iranian people. This includes the regime’s attempts to exploit digital assets to evade sanctions and finance cybercriminal operations.” — Scott Bessent, Treasury Secretary
The sanctions significantly impact cryptocurrency markets, particularly impacting Tether (USDT) flows linked to illicit Iranian networks. The broader market marked a decline in transaction volume amid increased geopolitical tensions.
Financial implications include sanctions on US-held assets of the impacted exchanges, impacting their operations. Political ramifications involve disrupting financial networks supporting the Iranian regime, primarily affecting crypto-based transactions.
Countries involved in enforcing these sanctions experience increased pressure to monitor crypto activities. Strained diplomatic relationships may result as nations align with or against these sanctions.
Potential outcomes may involve shifting crypto financial flows and changes in technological strategies by sanctioned entities. Historical trends of increased usage of stablecoins by Iranian channels continue, suggesting continued resilience despite regulatory actions. A broader perspective on this ongoing issue is available in the 2026 Crypto Crime Report.
