Author: Claude, TechFlow TechFlow
TechFlow Dive: Iran's Ministry of Economy has launched a Bitcoin-settled maritime insurance platform called "Hormuz Safe," offering "encrypted and verified insurance policies" to Iranian shipowners and cargo owners transiting the Strait of Hormuz. Iranian state media claims the platform could generate over $10 billion in annual revenue. However, whether the platform is actually operational has not been independently confirmed. Bitcoin's high volatility, compliance risks with US sanctions, and the controversial background of its behind-the-scenes figure, Babak Zanjani, severely test its feasibility. This is Iran's most significant attempt to transform its military control of the Strait of Hormuz into a cryptocurrency financial product.
Iran is attempting to turn one of the world's most critical maritime chokepoints into a Bitcoin-settled insurance market.
According to a Bloomberg report on May 18, Iran's semi-official news agency Fars, citing documents from the country's Ministry of Economy and Finance, stated that Iran has launched a Bitcoin-backed marine insurance service called "Hormuz Safe," targeting Iranian shipping companies and cargo owners wishing to transit the Strait of Hormuz. Fars claims the program could generate over $10 billion in revenue for Iran, but did not provide a timeframe or operational details.
Since the US-Israel airstrikes against Iran on February 28, Iran has effectively closed the Strait of Hormuz. This strait carries approximately 20% of global seaborne oil trade and 20% of liquefied natural gas exports during peacetime. The Iranian government and the Islamic Revolutionary Guard Corps (IRGC) have since sought to formalize control of the waterway, including imposing tolls and other fees. Insurance services are the latest addition to their revenue-generating toolchain.
Encrypted policy verification, instant Bitcoin settlement
According to a screenshot of the "Hormuz Safe" website shared by Fars, the platform claims to offer "fast, verifiable digital insurance" to Iranian shipping companies and cargo owners. Bitcoin Magazine reports that the insurance covers risks such as ship inspections, seizures, and confiscations, but excludes claims for war damage.
Fars, citing the website hormuzsafe.ir, stated that the platform will provide "cryptographically verifiable insurance policies" for goods transiting the Persian Gulf, the Strait of Hormuz, and surrounding waters, with payments settled in Bitcoin. Goods are protected from the moment they are confirmed on the blockchain, and the shipper will receive a signed receipt. The website currently appears to be inaccessible outside of Iran.
According to Bitcoin Magazine, Iran's Ministry of Economy began pushing forward with the insurance program at the end of April (the beginning of the Ordibehesht month in the Persian calendar). In April, Hamid Hosseini, a spokesman for the Iranian Oil, Gas and Petrochemical Exporters Union, told the Financial Times that shipping companies could settle passage fees for the Strait of Hormuz in non-US dollar currencies such as Bitcoin or the Chinese yuan.
Institutionalization is accelerating: from tolls to insurance platforms
Hormuz Safe is not an isolated move, but the latest component of a whole set of institutionalized structures that Iran is building around the Strait of Hormuz.
According to Bitcoin Magazine, in March 2026, the Iranian parliament passed the "Strait of Hormuz Management Plan," formally legislating the toll system operated by the IRGC starting in mid-March. Under this framework, the IRGC will charge fees to ships passing through the strait. Operators must submit information on ship ownership, cargo type, destination, and crew to obtain a passage permit code. The fee starts at approximately $1 per barrel of oil, with fully loaded oil tankers facing a maximum charge of $2 million, and payments are accepted in RMB.
On May 18, Iran’s Supreme National Security Council announced the formal establishment of the Persian Gulf Straits Authority (PGSA) and opened an official account on the X platform.
According to Euronews, the agency is positioned as the administrative entity managing traffic in the Strait of Hormuz and collecting tolls, operating in conjunction with the IRGC Navy. Vessels must submit complete information, including ownership, insurance, crew list, cargo declaration, and planned route, through the PGSA's official email address, and obtain passage permission only after approval and payment.
Ebrahim Azizi, chairman of the Iranian parliament's National Security and Foreign Policy Committee, stated on the X platform that only commercial vessels cooperating with Iran will benefit from the mechanism, while parties involved in US-Israeli military operations will be prohibited from using the route.
According to Windward Intelligence, as of May 18, traffic in the Strait was only about 38% of pre-conflict levels, and covert vessel tracking had been observed for six consecutive days at the central Qeshm-Larak anchorage. Approximately 369 IRGC speedboats were concentrated in a single area about 30 nautical miles northeast of Khasab, shifting their presence from coastal patrols to the main body of the Strait.
Volatility, sanctions risk, and the shadow of fraud
Several analysts have expressed doubts about the practical feasibility of Hormuz Safe.
Bloomberg points out that unlike stablecoins pegged to the US dollar, Bitcoin's price fluctuates wildly, limiting its adoption as a means of payment. Foreign shipowners may be reluctant to use the mechanism for fear of violating US sanctions against Iran.
Ryan Yoon, a senior analyst at Tiger Research, told Decrypt that the platform's technical and legal viability is "highly questionable," and despite its announced launch, no actual users have been confirmed. Shipping companies using Hormuz Safe face the risk of being "immediately expelled from the global financial system."
Cake Wallet CEO Vikrant Sharma told BeInCrypto that while Bitcoin can reduce some payment friction, it is not a clean path to circumvent sanctions. Liquidity in the marine insurance market is a limiting factor, activity on public blockchains can be monitored, and any exchange, broker, custodian, or dollar-pegged counterparty poses compliance risks.
Sam Lyman, research director at the Bitcoin Policy Institute, explained Iran's logic from another perspective: Bitcoin's core appeal lies in the fact that "no one can freeze it."
According to Decrypt, crypto "safe passage fee" scams have proliferated since the outbreak of war. Scammers impersonate Iranian authorities, demanding Bitcoin or USDT from shipping operators. Hormuz Safe appears to be a separate, state-level program, but the line between legitimate and fraudulent schemes is extremely blurred in the current climate.
A Bigger Picture: Iran Builds a De-Dollarized Maritime Financial System
According to Bitcoin Magazine, Iran's crypto ecosystem is estimated to be worth $7.8 billion in 2025, with IRGC-related transactions accounting for approximately 50% of the country's total crypto transactions (as of Q4 2025). The Iranian government has used mined Bitcoin to fund imports and hedge against losses in oil revenues; the national mining cost is reportedly around $1,300 per coin.
CoinDesk's analysis is quite accurate: the insurance structure is more ingenious than simply collecting tolls. Instead of paying for passage, cargo owners are purchasing insurance and certificates of financial liability for navigating waters that Tehran claims are safe. This allows Iran to monetize its geographical advantage in a more packaged way.
A comment from Hacker News user everdrive received high votes in the tech community: The post-WWII US-led world order was partly built on the US military keeping international waters open. Iran's successful challenge to the US on this level is shocking. Everyone knows Iran has the capability to close the Straits when cornered, but this outcome still exposes serious policy blunders.
Regardless of whether Hormuz Safe can ultimately operate at scale, the signal it sends is clear: Iran is building a complete administrative and financial infrastructure around the Strait of Hormuz, transforming the military blockade into a sustainable sovereign income mechanism, with Bitcoin serving as the settlement layer of this system.
