DEX Access for Iranian Citizens: How to Use Decentralized Exchanges Despite Restrictions

Posted by Victoria McGovern

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28
Dec

DEX Access for Iranian Citizens: How to Use Decentralized Exchanges Despite Restrictions

For many Iranians, cryptocurrency isn’t about speculation-it’s survival. With inflation hitting over 40% in 2025, banking access blocked by international sanctions, and the local currency losing value by the day, digital assets have become a lifeline. But when centralized exchanges like Nobitex get hacked or frozen by Tether, people turn to something harder to shut down: decentralized exchanges.

Why Centralized Exchanges No Longer Work for Iranians

Nobitex used to be the go-to for over 11 million Iranians. It was fast, local, and easy to use. But in June 2025, it got hacked for over $90 million. The fallout wasn’t just financial-it exposed how deeply tied Nobitex was to Iran’s sanctioned financial network. Many of its wallets connected directly to IRGC-linked addresses, flagged by global watchdogs. Then, in July 2025, Tether froze 42 Iranian addresses linked to Nobitex. More than half of those wallets had been moving money through the exchange. Overnight, Iranians lost access to billions in USDT holdings.

The government didn’t help. In January 2025, Iran’s Central Bank took full control of all cryptocurrency activity. Now, every trader, miner, or wallet owner must get a license and hand over all transaction data. Surveillance isn’t optional-it’s mandatory. Even using a VPN won’t hide your activity if you’re trading through local platforms. The message was clear: if you want to use crypto, you play by Tehran’s rules.

How Iranians Are Bypassing the Blockades

Iranians didn’t give up. They adapted. Within weeks of the Tether freezes, crypto influencers and local communities pushed a new strategy: ditch USDT. Switch to DAI. Do it on Polygon.

DAI is a decentralized stablecoin backed by crypto collateral, not a company like Tether. Polygon is a fast, low-fee blockchain that doesn’t rely on U.S.-based infrastructure. Together, they became Iran’s new financial escape hatch. Users started swapping their frozen USDT for DAI through DEXs like SushiSwap or QuickSwap-running through VPNs, using non-KYC wallets like MetaMask or Rabby, and moving funds off-chain before converting back to local currency.

This wasn’t just a technical shift. It was a cultural one. Iranians stopped trusting centralized platforms. They started learning how to self-custody. They learned how to read blockchain explorers. They joined Telegram groups where people shared step-by-step guides on how to bridge assets from Ethereum to Polygon without touching a regulated exchange.

What DEXs Iranians Are Actually Using

There’s no official list of approved DEXs in Iran. But based on on-chain data and community reports, here’s what’s working:

QuickSwap (Polygon) - The most popular DEX among Iranian users. Low gas fees, fast trades, and no identity checks. Used mostly to swap USDT → DAI or ETH → MATIC.
SushiSwap (Ethereum) - Used by more advanced users. Higher fees, but more liquidity and token options. Often accessed via bridge services like Across or Synapse.
Uniswap (Arbitrum) - Gaining traction after Arbitrum lowered fees in early 2025. Some users bridge from Polygon to Arbitrum to access newer tokens.
1inch Aggregator - Used to find the best rates across multiple DEXs. Popular because it reduces slippage and saves on fees.

Most of these platforms don’t require sign-ups. No email. No ID. Just a wallet. That’s the whole point.

The Role of VPNs and Non-KYC Wallets

You can’t access a DEX from Iran without a VPN. Not because the DEX blocks Iran-it doesn’t. But because Iranian ISPs block access to most foreign crypto sites. So users rely on tools like Outline, WireGuard, or Shadowsocks to route traffic outside the country.

Wallets matter just as much. Iranians avoid exchange wallets like Binance or Coinbase. Instead, they use:

MetaMask - The default. Easy to set up, works on mobile and desktop.
Rabby Wallet - Gaining popularity because it detects scams and warns users before sending funds to risky addresses.
Trust Wallet - Used by older users who prefer a simple interface.

The key rule? Never link your wallet to your real identity. No phone number. No email. No recovery phrase stored online. If you lose your seed phrase, you lose everything. And in Iran, there’s no customer service to call.

Split scene: government-controlled crypto licensing vs. underground DEX users in a hidden basement.

Legal Risks and Government Crackdowns

Using a DEX isn’t legal in Iran. The Central Bank’s 2025 regulations make any unlicensed crypto activity punishable by fines or jail time. In December 2024, the government shut down 17 illegal mining farms after rolling blackouts hit major cities. Officials blamed Bitcoin miners for draining the power grid. The message? If you’re not paying taxes and reporting to the state, you’re breaking the law.

And it’s not just mining. In September 2025, the U.S. Treasury sanctioned a $600 million shadow banking network tied to Iranian crypto transactions. That network used DEXs, privacy tools, and cross-border crypto bridges to move money without banks. Now, anyone caught using similar tools could be linked to that network-even if they’re just trying to buy groceries online.

The Iranian government doesn’t need to shut down DEXs. They just need to make users afraid. They monitor social media for crypto advice. They track IP addresses linked to known VPN providers. They pressure telecom companies to block Tor and other anonymity tools.

How to Safely Use a DEX in Iran (Step-by-Step)

If you’re in Iran and need to use a DEX, here’s what actually works right now:

Install a reliable VPN. Avoid free ones. Use Outline or NordVPN with obfuscated servers.
Download MetaMask or Rabby Wallet. Never use a wallet linked to your phone number or email.
Buy MATIC or ETH through a peer-to-peer platform like LocalCryptos or P2P Binance (using cash or gift cards).
Bridge your ETH or MATIC to Polygon using the official Polygon bridge. Avoid third-party bridges.
Go to QuickSwap on Polygon. Swap your MATIC for DAI. DAI is the most stable and widely accepted stablecoin in Iran’s underground crypto economy.
Store your DAI in a cold wallet if you’re holding long-term. Use a Ledger or Trezor if you can get one.
Never reuse wallet addresses. Generate a new one for every transaction.

This process takes time. It’s not as easy as opening Nobitex. But it’s the only way to keep your funds safe from freezes, hacks, and government seizures.

What’s Next for Crypto in Iran?

Iran’s government wants to control crypto. But it can’t kill it. Mining is still happening underground. DEX usage is growing. The shift from USDT to DAI proved Iranians can adapt faster than regulators can react.

In 2025, Iran’s crypto scene split into two paths: one for those who play by the rules (licensed miners, taxed traders), and one for everyone else-using DEXs, privacy tools, and decentralized networks to survive. The latter group is growing. And it’s getting smarter.

The real question isn’t whether Iranians can use DEXs. It’s how long the government will let them.

Can You Use Uniswap or SushiSwap in Iran?

Yes, but not directly. Uniswap and SushiSwap don’t block Iranian IPs. But Iranian ISPs do. You need a VPN to reach them. Also, Uniswap runs on Ethereum, which has high gas fees. Most Iranians use QuickSwap on Polygon instead because it’s cheaper and faster. SushiSwap is used for trading less common tokens, but only by experienced users.

DAI as a dragon flying over a frozen USDT fortress, with Iranians escaping regulators on its back.

Is DAI Safer Than USDT in Iran?

Absolutely. USDT is controlled by Tether, a U.S.-based company that complies with U.S. sanctions. In July 2025, Tether froze over $100 million in Iranian-linked USDT. DAI is governed by the MakerDAO community, which has no central authority. It’s algorithmically backed and can’t be frozen by a single company. That’s why DAI became Iran’s de facto stablecoin after the Tether crackdown.

Do Iranian Banks Allow DEX Transactions?

No. Iranian banks are legally banned from handling any cryptocurrency transactions. Even if you buy DAI on a DEX, you can’t deposit it into a bank account. All conversions to Rial happen through informal peer-to-peer markets, often using cash or mobile payment apps like Saderat or Mellat Pay.

Can You Mine Crypto Legally in Iran?

Technically, yes-but only if you’re licensed and sell all your mined coins to the Central Bank of Iran at fixed prices. The rates are so low, and electricity costs so high, that most miners operate illegally. In 2025, the government raided over 50 illegal mining farms. The risk is high, but the reward-access to hard currency-is worth it for many.

What Happens If Your DEX Wallet Gets Tracked?

If your wallet address is flagged by Iranian authorities or international sanctions lists, you could face fines, asset seizure, or legal action. That’s why Iranians use techniques like coin mixing (via Tornado Cash alternatives), address rotation, and avoiding known transaction patterns. The goal isn’t anonymity-it’s obscurity. Don’t stand out. Don’t make large transfers. Don’t link your wallet to your identity.

Dec 28, 2025
Victoria McGovern
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