Iran’s Defense Export Agency Opens Doors to Cryptocurrency Payments for Missiles, Drones, and Warships Amid Sanctions
In a bold move to circumvent international sanctions, Iran’s Ministry of Defense Export Center, known as Mindex, has begun accepting cryptocurrency payments for advanced weapons systems including ballistic missiles, drones, and warships.[1][2][3][5][6]
The announcement, highlighted on Mindex’s official online portal, lists over 3,000 products ranging from armaments and rockets to aviation, marine platforms, and radar systems.[6] Payment options now explicitly include “digital currencies,” alongside local currencies, barter arrangements, and traditional bank transfers.[1][5][6] This development allows buyers from 35 countries—many under their own sanctions—to acquire high-tech Iranian weaponry without relying on scrutinized banking channels.[1]
Bypassing Western Restrictions with Blockchain
Iran faces stringent sanctions, intensified in 2025 over its nuclear program, which have severed access to global financial systems.[1][5] Traditional banks worldwide refuse transactions with Iranian entities due to U.S. and UN regulations, severely limiting arms exports.[1][3]
Cryptocurrency offers a borderless, pseudonymous alternative. Blockchain technology enables rapid, private transfers that evade oversight.[1] Reports indicate sanctioned nations received nearly $16 billion in crypto last year, underscoring its role in illicit finance.[1] Mindex’s portal reassures clients: “Given the general policies of the Islamic Republic of Iran regarding circumvention of sanctions, there is no problem in implementing the contract,” promising swift delivery.[6]
Specific weapons on offer include Emad ballistic missiles, Shahed drones, Soleimani-class warships, and short-range air defense systems.[5] No public pricing is available, maintaining secrecy around these high-value deals.[1]
Economic Pressures Fuel the Shift
The decision comes amid Iran’s economic turmoil. The rial hit record lows against the dollar in 2025, driving hyperinflation and sparking public protests.[5] Currency collapse and restricted trade have pressured the government to explore alternatives like crypto for international commerce.[4][5]
Iran has long engaged with digital assets. It ranks as the fifth-largest Bitcoin mining hub globally, and officials have previously advocated crypto for trade.[4] However, U.S. authorities have sanctioned Iranian crypto networks linked to oil and weapons sales, including those tied to the Revolutionary Guard and Hezbollah.[4][6]
Mindex, affiliated with the Ministry of Defense and Armed Forces Logistics (MODAFL)—under U.S. sanctions since 2007—hosts its platform on a blacklisted Iranian cloud provider.[6] Washington warns that entities dealing with MODAFL risk secondary sanctions and exclusion from the U.S. financial system.[6]
Global Implications and Precedents
This marks one of the first instances of a nation-state openly accepting crypto for military hardware sales.[1] It could inspire similar moves by other sanctioned regimes, such as Turkmenistan, which has advanced crypto legislation.[1] Global crypto trading volumes reached new highs in 2025, amplifying its appeal for high-stakes transactions.[1]
Experts view this as a test case for crypto’s dual-use potential: innovation for some, evasion for others. “A drone paid with Bitcoin, shipped without a trace,” one report quipped, highlighting the opacity.[1]
U.S. and International Response
The U.S. has ramped up scrutiny of Iran-linked “shadow banking” and crypto channels.[6] Recent designations targeted networks facilitating millions in crypto for arms and oil.[4] Buyers using Mindex risk severe repercussions, including asset freezes.
As 2026 unfolds, major powers will monitor Iran’s crypto arms trade closely. With economic reforms urgent and crypto markets volatile, the strategy’s success remains uncertain.[5]
Background on Mindex
Established in 1989, Mindex serves as MODAFL’s export arm, boasting decades of experience in sanctioned markets.[6] Its FAQ addresses delivery concerns, emphasizing Iran’s sanction-evasion expertise.[6]
“We want to do trade with other countries where we pay in digital currencies. It is a necessity for us.” — Mohammad Bagher Ghalibaf, Iranian Parliament Speaker[5]
This fusion of defense and decentralized finance signals a new era in geopolitical maneuvering, where blockchain bridges gaps left by frozen fiat flows.