U.S. Sanctions Crypto Exchanges Linked to Iran Transactions

The US Treasury Department sanctioned Zedcex and Zedxion for facilitating Iran-linked transactions, processing over $94 billion since 2022. These UK-registered crypto exchanges faced action for involvement with Iran’s Islamic Revolutionary Guard Corps (IRGC).

The sanctions underscore ongoing efforts by the U.S. to curb the use of digital assets in evading international sanctions, particularly by Iran. Immediate impacts are expected to influence crypto market dynamics significantly.

Zedcex and Zedxion, registered in the UK, allegedly processed over $94 billion since August 2022, supporting Iran’s financial sector. They are noted for their links with the Islamic Revolutionary Guard Corps. These exchanges have received no comments from leadership or official channels.

Scott Bessent, U.S. Treasury Secretary, “This includes the regime’s attempts to exploit digital assets to evade sanctions and finance cybercriminal operations. Like rats on a sinking ship, the regime is frantically wiring funds stolen from Iranian families to banks and financial institutions around the world.”

This action by the U.S. Treasury marks the first-ever sanction against digital asset exchanges operating within Iran’s financial sector. Seven Tron addresses associated with these exchanges are now frozen, aligning with previous actions by Israel’s NBCTF.

Immediate impacts may involve shifts in transaction behaviors among Iran-linked entities. The sanctions highlight geopolitical tensions influencing crypto asset regulation. The broader implications reflect a tightening of international scrutiny over digital asset exchanges.

Potential outcomes include increased regulatory actions globally and the development of compliance strategies by crypto exchanges. Historical precedents suggest tightened oversight, potentially leading to market volatility and legislative advancements worldwide.