Iran Criminalizes Starlink Usage, Impact on Crypto Market

Iran has officially banned the possession and use of Starlink devices, initiating severe penalties for non-compliance, per reports from the Iranian Parliament.

The ban highlights Iran’s ongoing attempt to control internet access and restrict uncensored online communication, although the move had no immediate impact on cryptocurrency prices or on-chain market indicators.

The Iranian Parliament’s decision criminalizes Starlink, a satellite internet service by SpaceX, ceased to operate legally within the nation’s borders. Authorities are making formal requests to international entities to disable any active Starlink devices in Iran. This move underscores Iran’s long-standing effort to regulate the flow of information and bolster censorship efforts, similar to prior bans on VPNs and social media.

Estimates indicate: “20,000–40,000 Starlink devices are still active in Iran via the black market, showcasing ongoing citizen demand for uncensored connectivity regardless of punitive risk.” – Jerusalem Post

Elon Musk’s Starlink, positioned as a tool for free internet access, still reportedly functions through black market channels, indicating persistent demand. However, Elon Musk and SpaceX have not publicly commented on this development to date. The absence of official statements from major blockchain or crypto figures signals no immediate reaction to the ban within these communities.

Despite the criminalization, there are between 20,000 to 40,000 Starlink terminals active via unofficial markets. Past government interventions in technology display a pattern of creating robust black market ecosystems due to ongoing citizen demand for uncensored access. These dynamics demonstrate the complexities involved in censoring internet technology in authoritarian regimes. While no cryptocurrency market shifts have been officially observed, privacy-centric technologies may attract speculative interest due to their censorship-resistant nature. Historically, similar bans have led to temporary increases in trading volumes for privacy-focused tokens, driven by market speculation.