Iran's Bitcoin "Insurance" Policy: Pay Up or Get Boarded 🛳️

The U.S. Treasury on Wednesday sanctioned two Iranian maritime firms tied to an alleged Islamic Revolutionary Guard Corps-backed insurance network that requires commercial vessels to purchase approved coverage before transiting the Strait of Hormuz, with one of the firms accepting Bitcoin ($BTC) and other digital assets to evade Western restrictions. The Treasury's Office of Foreign Assets Control designated Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority as operating in Iran's financial sector, alleging the network generated revenue for the IRGC. The action also sanctioned eight companies linked to Iran's shadow fleet and identified eight vessels as blocked property.

OFAC said HormuzSafe accepted $BTC and other cryptocurrency as part of efforts to bypass sanctions, alleging the platform generated revenue on behalf of the IRGC while helping Iran exert greater control over shipping through the strait. Persian Gulf Marine Insurance Company was set up by Iran's insurance regulator and brokers the policies, which are approved by the IRGC-backed Persian Gulf Strait Authority designated in May. HormuzSafe Marine Services Authority was developed by Iran's Ministry of Economy and markets itself as a provider of traffic control, security and emergency response, as well as insurance. Babak Morteza Zanjani, an Iranian financier sanctioned earlier this year, promoted the platform to his social media followers.

"The United States will not allow Iran to hold global commerce hostage," Treasury Secretary Scott Bessent said, accusing the regime of using international shipping to finance the IRGC. Bessent said the Iranian regime is "desperate for cash," with its economy "in freefall" and inflation in triple digits. On May 18, screenshots of the HormuzSafe website had circulated online offering "digital insurance" for maritime cargo, with policies payable in Bitcoin. At the time, Iranian state-linked media Fars News Agency said the proposed platform could issue marine insurance policies and certificates of financial responsibility while potentially generating over $10 billion in revenue.

The Strait of Hormuz handles about one-fifth of the global oil trade. Earlier reports cited the Bitcoin Policy Institute saying Iran accepted oil toll payments in Chinese yuan, Tether USDt ($USDT) and Bitcoin, though there was no onchain evidence that any Bitcoin payments had yet been made. TRM Labs policy head Ari Redbord said in April he was skeptical, telling Decrypt there was no data showing crypto being used at scale for Hormuz transit, and others noted the man quoted in that report, an industry union spokesman, did not speak for the regime. Bitcoin may be attractive to sanctioned actors because it has no centralized issuer capable of freezing funds, unlike centralized stablecoins whose issuers can block addresses; in April, U.S. authorities froze $344 million in USDT linked to Iran. Most of the eight newly sanctioned shipping companies are registered in Hong Kong, and more than 100 vessels tied to Iran's shadow fleet have been sanctioned since January.