US Sanctions Iranian Firms Charging Bitcoin for Hormuz Passage

The United States has taken action against Iran for a scheme that forces ships to pay for passage through one of the world's most important waterways — and some of those payments are being made in Bitcoin (a type of digital money that isn't controlled by any government or bank).

On Wednesday, the U.S. Treasury's OFAC (Office of Foreign Assets Control — the U.S. agency that enforces financial penalties against foreign targets) sanctioned two Iranian firms. Sanctions are official punishments that block companies from doing business with the U.S. financial system.

What's the scheme? Vessels crossing the Strait of Hormuz — a narrow sea passage that carries about a fifth of the world's oil — are being told they must buy special "insurance." This cover, approved by Iran's Revolutionary Guard, supposedly protects ships from being seized. The catch: Iran itself is the one threatening to seize them.

Key facts from the Treasury:

• Two firms sanctioned: Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority.
• HormuzSafe accepts Bitcoin and other digital assets to bypass Western sanctions.
• Tolls were reportedly set to start at $1 per barrel of oil.
• 8 oil tankers and their operators were also blacklisted, most registered in Hong Kong.
• Over 100 vessels tied to Iran's "shadow fleet" (ships hiding their activity to dodge sanctions) have been sanctioned since January.

Why crypto? Because Iran is largely cut off from the normal global banking system, it's turning to Bitcoin, which can move across borders without going through Western banks. However, back in April, blockchain analysts said they saw no evidence crypto was being used on a large scale for these tolls. Treasury's move now confirms at least one government-built firm does accept Bitcoin.

The bigger picture Treasury Secretary Scott Bessent said Iran's regime is "desperate for cash," with an economy "in freefall" and inflation (rising prices) in the triple digits. Washington says it won't let Iran "hold global commerce hostage."

In short, the U.S. is trying to choke off Iran's crypto-powered cash flow — a reminder that digital money is now part of global political battles.

This is an AI-generated summary. Read the original article at: https://decrypt.co/374789/us-treasury-sanctions-iranian-firms-taking-bitcoin-for-hormuz-passage