The U.S. Treasury added eight Canadian firms to its sanctions list, accusing them of facilitating crypto trades for Iran‑linked entities and the IRGC.
The U.S. Treasury announced on Friday that eight Canadian money‑service businesses have been placed on its sanctions list for allegedly providing crypto‑related services to sanctioned Iranian entities, including the Islamic Revolutionary Guard Corps (IRGC). The designations, made by the Office of Foreign Assets Control (OFAC), aim to isolate the firms from the U.S. dollar‑based financial system and prevent further exploitation of digital assets by the Iranian regime.
According to the Treasury’s statement, the eight firms facilitated the exchange of Iranian rials and other fiat currencies for digital assets, enabling cross‑border transactions that bypass traditional banking channels. Some of the entities reportedly altered their corporate names and addresses in an effort to evade detection, prompting the Treasury to act in coordination with Canada’s financial intelligence unit, FINTRAC.
Secretary of the Treasury Scott Bessent emphasized that Canada cannot serve as a safe haven for actors providing sanctions‑evasion services to Iran and its proxies. He reiterated the Treasury’s broader strategy to increase economic pressure on Tehran by targeting financial networks that move funds in dollars, rials, or crypto, a focus highlighted in an August report by Cointelegraph on earlier OFAC actions.
The sanctions announcement coincided with a separate U.S. Rewards for Justice offer of up to $20 million for information on Iran’s nuclear program, underscoring the administration’s intensified effort to curb Tehran’s illicit financing. The Treasury’s statement linked the crypto‑related sanctions to its ongoing campaign to disrupt the regime’s use of digital assets for terrorism, human‑rights abuses, and attacks on U.S. personnel and allies.
Analysts will monitor how the sanctioned Canadian firms respond, including potential legal challenges or restructuring to evade the restrictions. Further coordination between U.S. and Canadian regulators is expected as both governments seek to tighten oversight of crypto‑related money‑service businesses. Future Treasury actions may expand to additional jurisdictions if similar facilitation of Iran‑linked crypto activity is identified.
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