PiCK

"Iran sees surge in crypto transfers whenever geopolitical crises erupt"

JH Kim

Summary

Chainalysis said Iran has shown a pattern in which virtual asset trading volume and on-chain transfer volume surge whenever geopolitical crises occur.
It said about $10.3 million in virtual assets flowed out from Iran’s major platforms through March 2 following U.S. and Israeli airstrikes.
It assessed that amid the Iranian rial’s depreciation and high inflation driven by clashes with Israel and anti-government protests, virtual assets have emerged as an alternative for storing value and remitting funds.

Forecast Trend Report by Period

An analysis has found that Iran’s virtual asset (cryptocurrency) market has shown a pattern of sharp increases in trading volume and on-chain transfers whenever geopolitical crises occur.

According to crypto-focused media outlet The Block on the 3rd (local time), blockchain data analytics firm Chainalysis said, "From after the U.S. and Israeli airstrikes on Feb. 28 (local time) through March 2, about $10.3 million in virtual assets flowed out from Iran’s major platforms," adding that "this movement is not a one-off reaction but a long-term pattern that has repeatedly occurred whenever domestic unrest or regional clashes break out."

It further assessed that "events such as confrontations with Israel and anti-government protests have driven down the value of the Iranian rial and fueled high inflation, and in this environment virtual assets have emerged as an alternative for both individuals and the state to store value and remit funds."