Iran offers bitcoin-based protection racket for Strait of Hormuz

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—by Protos Staff

Iran is reportedly considering the introduction of a bitcoin (BTC)-based insurance policy for safe passage through the Strait of Hormuz that it believes will make the country $10 billion in revenue. 

That’s according to state-backed news outlet Fars News, which reported on Saturday that the system has been in the works since April. 

The proposed policy is called “Hormuz Safe,” and its website claims it will provide “Iranian shipping companies and cargo owners with fast, verifiable digital insurance — paid via BTC and settled at the speed of the blockchain.” 

Fars News reports that Iran wants to legally control the Strait after the war’s conclusion and commercialise the route to boost its economy. 

Iran’s Hormuz Safe website emphasises bitcoin as a form of payment. Image shared by Fars News.

Read more: Crypto scams are now a threat in the Strait of Hormuz, report

The outlet reports that, “With this plan, various marine insurance policies and financial liability certificates can be issued, which could generate over $10 billion in revenue for the country.”

Iran has also reportedly created a new government body today to help manage the Strait, while peace talks with the US appear to have come to a standstill. Countries in Europe are also holding talks with Tehran over passage through the Strait.

Iran’s previous BTC toll exploited by scammers

Iran has already demanded that ship owners pay BTC tolls. At the time, officials wrongly implied that the crypto would be free from the restrictions of sanctions.

The US has also sanctioned Iran’s BTC wallets and other state-owned entities, so payments in BTC won’t alter these restrictions. 

After the first set of tolls were announced, scammers attempted to exploit the news by sending ship masters phony emails pretending to be Iranian authorities and asking for payment. 

One ship may have fallen victim to the scammers as the vessel’s crew, thinking they had paid the toll, was still fired upon by Iranian forces. 

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