Report: Iran Caps Stablecoin Transactions as Rial Hits Record Low

Iran has implemented strict new stablecoin regulations, capping annual cryptocurrency purchases at $5,000 per person and limiting total digital asset holdings to $10,000, as the Iranian rial plunges to record lows against the US dollar. The sweeping restrictions, announced in September, represent Iran's latest attempt to control capital flight amid severe economic sanctions and currency devaluation.

These stringent cryptocurrency controls highlight the growing tension between traditional monetary policy and decentralized finance (DeFi) adoption in sanctioned economies. Iranian authorities are targeting stablecoin transactions specifically, as citizens increasingly turn to dollar-pegged digital currencies like USDT to preserve wealth during the rial's historic decline.

The enforcement measures underscore Iran's complex relationship with blockchain technology and Bitcoin adoption. While the country has previously embraced crypto mining and explored central bank digital currencies (CBDCs), these new limitations signal concerns about cryptocurrency facilitating capital flight. The $5,000 annual purchase limit and $10,000 holding cap could significantly impact Iran's domestic crypto market, potentially driving underground trading activity as citizens seek alternatives to the rapidly depreciating rial in the volatile cryptocurrency landscape.