The US Treasury has ramped up pressure on Iran's maritime operations by sanctioning two firms linked to a Bitcoin-backed shipping insurance scheme. The move highlights how Iran has exploited cryptocurrencies to generate revenue and exert control over shipping routes, particularly the key Strait of Hormuz.
Sanctions Hit Bitcoin-Enabled Insurance Providers
The Office of Foreign Assets Control (OFAC) identified Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority as operators of a mandatory insurance program for ships navigating the Strait of Hormuz. This program allowed payments in Bitcoin and other digital assets as a way to bypass existing sanctions. Treasury officials say the insurance scheme was designed to fund the Islamic Revolutionary Guard Corps (IRGC) while increasing Tehran’s use over international shipping traffic in one of the world's busiest maritime chokepoints.
Broader Crackdown on Iranian Shipping Network
Beyond targeting the insurance firms, the US slapped sanctions on eight shipping companies and froze assets of eight oil tankers moving millions of barrels of Iranian crude and petroleum products, destined for markets in China and the UAE. This is part of a broader effort that has already seen over 100 Iranian-flagged vessels sanctioned in 2026 alone. The Treasury warned that non-US individuals and companies who assist these sanctioned entities could also face penalties, signaling a wide-reaching clampdown on Iran’s circumvention tactics.
Sanctioning crypto-enabled services marks a new frontier in enforcing embargoes, demonstrating how digital currencies are entwined with geopolitical conflicts. The use of Bitcoin in Iran's maritime insurance scheme not only helped sustain critical revenue streams for the IRGC but also complicated enforcement efforts by obscuring payment trails.
This material is informational and does not constitute financial advice.
