Daijiworld Media Network - Tehran
Tehran, Jan 2: Iran’s Defence Ministry Export Centre, known as Mindex, has reportedly begun offering cryptocurrency as a payment option for defence export contracts, marking a rare and significant move by a nation state in the global arms trade.
According to the London-based Financial Times, the option to pay in cryptocurrency appeared on the Mindex website within the past year. The website’s frequently asked questions section states that payments can be made in cryptocurrency, “as agreed upon in the contract”.
Observers note that this appears to be one of the first known instances where a country has publicly indicated its willingness to accept cryptocurrency as payment for the export of strategic military hardware.
While the Mindex website does not list prices for its products, it showcases a wide range of defence categories, including rockets and missiles, aviation equipment, military vehicles, propellants, high explosives and other military-related systems.
The website also directly addresses concerns regarding international sanctions imposed on Iran. Responding to a question about guarantees under sanctions, Mindex states that assurances will be provided at the time of signing the contract. It further claims that, in line with Iran’s policies on circumventing sanctions, there would be “no problem” in executing contracts and delivering products to the destination country.
Iran has long been accused of turning to cryptocurrency to fund state operations amid tightening international sanctions. In September, Israel’s National Bureau for Counter Terror Financing ordered the seizure of 187 cryptocurrency wallets it alleged were linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
In December, a report by the Institute for National Security Studies (INSS) detailed how the IRGC’s Quds Force developed complex mechanisms to evade sanctions and support aviation and weapons smuggling operations. The report alleged that Iranian airlines such as Mahan Air and Qeshm Air, operated by the IRGC-QF, were used to transport weapons on flights presented as civilian operations.
Earlier, in June, anti-regime hacktivist group “Gonjeshke Darande” (Predatory Sparrow) claimed it had stolen cryptocurrency worth $48 million from the Iranian regime, alleging the funds were intended for financing terror activities.
The use of cryptocurrency by Iran-linked entities is not new. In June 2023, then Israeli defence minister Yoav Gallant ordered the seizure of millions of dollars in cryptocurrency allegedly belonging to the IRGC-Quds Force and Hezbollah, described at the time as the largest such seizure involving the two groups.
The latest development has raised renewed concerns among international observers about the role of digital currencies in sanctions evasion and the global arms trade.