On August 24, the US Treasury announced Operation Economic Outcast, a new campaign ramping up the risk of secondary sanctions for several sectors of Iran’s economy—including digital asset transactions. Crypto is now officially on the list of areas where the Office of Foreign Assets Control (OFAC) can slap restrictions on foreign players.

Crypto Faces Sanctions Heat

As part of the new measures, the Treasury rolled out five sector-specific definitions under Executive Order 13902. The list covers crypto, tech, gold, aviation, and shipping. The agency made it clear: foreign individuals or companies operating in these parts of Iran’s economy—or providing them services—could get hit with sanctions, no matter where they’re based.

Why the Crackdown?

The Treasury linked crypto payments to efforts to dodge sanctions and to transactions benefiting the Quds Force of Iran’s Islamic Revolutionary Guard Corps. The goal is to crank up the pressure on Iran and cut off its ability to use digital assets for global payments and funding.

What This Means for the Crypto Industry

The expanded sanctions regime ramps up risks for companies and individuals dealing with Iranian counterparties in crypto. OFAC is warning: any foreign participant involved in these sectors could face restrictions.