The US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Iranian companies linked to a Bitcoin-based insurance scheme for ships passing through the Strait of Hormuz. This move aims to block Tehran’s attempt to bypass sanctions by demanding digital asset payments from vessels navigating this key maritime route.
The Strait of Hormuz handles about 20% of the world’s oil shipments but has been nearly shut down since the US and Israel launched attacks on Iran earlier this year. In response, Iran’s Ministry of Economy rolled out Hormuz Safe, a system that requires commercial vessels to buy insurance paid in Bitcoin and other cryptocurrencies, as a way to evade economic restrictions.
Sanctions Hit IRGC-Backed Firms
OFAC named the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority as part of a Revolutionary Guard Corps-backed operation forcing mandatory insurance fees on shipping companies. Treasury Secretary Scott Bessent said Iran’s sinking economy and triple-digit inflation have made the regime desperate for cash. The US vows to prevent Iran from exploiting global trade routes to finance aggression and terrorism.
Earlier this month, the US froze Iranian digital assets, mainly stablecoins like Tether (USDT), which can be blocked by issuers. Bitcoin, being decentralized, remains elusive to such freezes. Industry experts warn that if the Strait remains closed, soaring oil prices could trigger a global recession. This crackdown follows reports from earlier this summer about the US targeting crypto linked to Iran.
This material is for informational purposes only and not financial advice.
