Sanctions, Bank Failures, and Crypto Crackdowns Deepen Iran’s Crisis

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Iran’s financial system is under growing strain as sanctions restrict access to global banking and weaken domestic lenders. State-owned Bank Melli collapsed in October, putting the assets of more than 42 million people at risk, while the central bank has warned that eight more banks could face dissolution.

Despite crypto trading being legal, strict rules on self-custody and heavy crackdowns on Bitcoin mining limit alternatives. Authorities have even offered rewards for reporting unregistered miners, as capital flight accelerates and confidence in the financial system continues to erode.