Iran's Internet Blackout Puts Crypto Usage at Risk Amid Protests

By: Eliza Bennet

The ongoing political and economic crisis in Iran has taken a new turn as the government has reportedly cut off internet access amidst widespread protests. This abrupt disruption in connectivity is a reaction to the growing demonstrations against the regime, which are fueled by economic despair and the Iranian rial's significant depreciation against the US dollar. It is reported that the internet traffic within Iran has plummeted dramatically, leading to a near-total blackout, as confirmed by Cloudflare data. This situation raises concerns regarding the accessibility of crucial digital services, including cryptocurrency transactions.

Despite the internet shutdown, Iran's vast crypto community, estimated at roughly seven million people, faces challenges in participating in the global digital economy. With $3.7 billion in crypto flows recorded by TRM Labs between January and July 2025, the crypto sector is a significant player in the financial activities of many Iranians. The potential for people to use cryptocurrencies as an alternative to the depreciating national currency has been one of the fundamental advantages of digital currencies as an 'exit' option for citizens looking for financial relief.

This development also underscores the critical role of internet connectivity in facilitating cryptocurrency transactions and highlights the vulnerabilities of centralized internet infrastructure in authoritarian regimes. As the Iranian government intensifies its hold by limiting digital communications, it hampers the population's access to decentralized financial systems, which could offer some economic respite amidst ongoing inflation issues. The situation remains fluid, with global attention focused on how Iranians will adapt their use of cryptocurrencies amid such challenging conditions and how the crypto world might evolve to support compromised connectivity.

For more context on the evolution of cryptocurrency in such geopolitical landscapes, refer to publications like Blockchain.com Learning Portal and insights from industry analysts at respected crypto platforms.