Iranian officials are very clear on the value of their growing arsenal. Europe, with strong backing from the U.S., needs to finally turn its words into deeds.
Mr. Trump and many Republicans have been reluctant to promote democracy and civil society overseas. They would be wise to overcome this hesitation and play every card they have against the regime to build the broader base of support, at home and abroad. The clock is ticking.
The U.S. has successfully pressured Tehran until now. Key indicators such as projected GDP growth and inflation testify to the strength of U.S. sanctions up to this point. Yet the decelerating rate of inflation and appreciation of the rial may be a sign that the markets doubt whether U.S pressure will be forceful enough in the coming months. As such, the United States must increase pressure on the clerical regime by significantly cutting Tehran’s oil exports, limiting its access to hard currency, and sanctioning additional entities that ensure the stability of Iran’s economy and Tehran’s grip on power.
In addition to watching out for customer transactions with the listed addresses, exchanges will likely need to conduct analysis to identify any additional wallets that may be controlled by the Iranian exchangers. Treasury’s move makes it clear that malevolent actors hiding behind digital currency transactions, and those that support these activities, may also find themselves in Treasury’s crosshairs.