In the wake of recent U.S.-Israeli military actions against Iran, beginning around February 28, the country’s cryptocurrency landscape has shown resilience but also significant strain, according to blockchain analytics researchers at TRM Labs. Rather than sparking a surge in activity or mass capital exodus, the escalating conflict has led to a marked contraction in crypto transactions, highlighting how external pressures and internal controls are reshaping digital asset usage in one of the world’s most active crypto economies.

Iran’s crypto sector processes billions in value annually, serving as a critical alternative to traditional banking amid ongoing sanctions and economic instability.

TRM Labs reports that from early 2025…