US opens a new front against Iran's crypto economy

The U.S. opened a new front against Iran's crypto economy by placing its digital asset sector under the sanctions authority used against its oil, banking and metals industries. The Treasury announced the action on Monday. The action is part of Operation Economic Outcast, which the U.S. has called an economic campaign against Iran. The action is a first and increases exposure for crypto businesses worldwide. OFAC can sanction any person regardless of location. OFAC said Iran increasingly uses cryptocurrency to evade sanctions and support transactions linked to the Islamic Revolutionary Guard Corps and Iranian regime insiders. Foreign exchanges, OTC desks, payment processors and infrastructure providers that knowingly facilitate those transactions can face designation. Designated entities typically lose access to the U.S. financial system. OFAC also designated members of a Ministry of Intelligence and Security group accused of hacking U.S. critical infrastructure on behalf of the Iranian regime. OFAC published wallets linked to the group. Group co-leader Behzad Mesri held bitcoin and other crypto addresses were added to the Treasury's sanctions list. Keyvan Fayyaz Ghareh Blagh was also added to the list. Arman Kahzadian was also added to the list. The three belong to a larger MOIS contingent that pursued U.S. targets through data theft and intrusions against corporations and government offices. Bloomberg first reported in May that Iran had started a bitcoin-backed insurance service for Iranian shipping companies. The U.S. said in July that it had frozen cryptocurrency linked to the Iranian regime, mostly Tether. Tether's USDT can be frozen by its issuer. Bitcoin cannot be frozen by an issuer because it is decentralized and has no single issuer.