Iran Ties Prompt US To Sanction UK Crypto Platforms

US authorities moved on Friday to cut off what they say was a major crypto pipeline used by Iranian actors. Two London-registered platforms were added to the sanctions list and are now subject to blocking measures that bar US persons from dealing with them.

First Ever Exchange Designations

According to US Treasury notices and blockchain analysts, the entries are unusual because they target the exchange infrastructure itself rather than just individuals.

Reports say the platforms — Zedcex Exchange Ltd. and Zedxion Exchange Ltd. — were identified as taking part in financial activity linked to Iran’s Islamic Revolutionary Guard Corps.

The Listings Change How Enforcement Looks

Based on reports from on-chain firms, the move follows months of tracing crypto flows that allegedly routed value for Iranian state-linked groups.

One firm reports that Zedcex alone processed more than $94 billion in transactions since it began operations in 2022, a volume that drew close scrutiny from investigators.

The sanctions were not limited to crypto firms. US officials added Iran’s interior minister and a set of other senior figures to the blacklist, citing roles in the violent suppression of protests and in laundering or diverting funds.

The listings were announced alongside broader measures that the Treasury said would choke off sources of revenue used to support repressive acts.

Reports note that the exchanges appear to have been used as clearing points for transfers tied to Iranian networks.

Blockchain forensics firms and law enforcement agencies say wallets connected to IRGC interests showed links to trades and transfers on these platforms, which helped build the case for sanctions.

Some of the accused companies were also tied to known Iranian business figures.

Markets reacted with caution, though the broader crypto sector did not collapse. Trading on many regulated venues continued, while exchanges that serve global clients began to review ties and tighten compliance checks.

A number of service providers are expected to block traffic associated with the newly sanctioned entities to avoid secondary penalties.

Observers say this action signals a tougher stance on using crypto to dodge financial rules. Based on reports, regulators may press more cases that treat whole pieces of infrastructure as part of an illicit financing chain.

Some analysts warn that the rules will push bad actors to find ever more complex routes, while others expect clearer rules and more cooperation between crypto firms and authorities.

Featured image from Unsplash, chart from TradingView