Iran launches 'Bitcoin-based' marine insurance, sparking de facto debate over a Strait of Hormuz transit fee

\r\n[The Financial News] Iran has introduced a Bitcoin-based marine insurance service for vessels passing through the Strait of Hormuz.
According to U.S. media reports on the 18th local time, the insurance, called "Hormuz Safe," is aimed at cargo ships passing through the Persian Gulf and the Strait of Hormuz. Premiums are paid in Bitcoin. The Iranian government expects the service to generate more than $1 billion in revenue in the future.
Although Hormuz Safe is structured as an insurance product, critics say it is effectively a transit fee system. Earlier, Ebrahim Azizi, chairman of Iran's parliamentary National Security Committee, said that "a management system for designated routes will be unveiled soon" and that "fees will be charged for specialized services, and only merchant ships and parties cooperating with Iran will benefit."
Since the United States and Israel began airstrikes on Feb. 28, Iran has tightened its control over the Strait of Hormuz. In the process, the Iranian government and the Islamic Revolutionary Guard Corps (IRGC) have pushed for designated shipping lanes and transit fees in the strait. As a result, some ships were reportedly asked to pay as much as $20 million to use the designated route near Iran's coast.
According to the U.S. military, more than 1,500 merchant ships were stranded in the Persian Gulf region as of early this month. However, actual contracts are expected to remain limited, as foreign shipowners could risk violating U.S. sanctions on Iran if they use the insurance service. Critics also say Bitcoin is not a suitable payment method for international marine insurance because of its high price volatility.
whywani@fnnews.com Hong Chaewan Reporter