The growing expansion of cryptocurrencies and the emergence of novel financial instruments such as initial coin offerings (ICOs), while creating substantial and innovative capacities for capital raising, have also created fertile ground for legal challenges and widespread abuses. A review of the experiences of different legal systems shows that states have adopted a variety of approaches to cryptocurrencies and, consequently, to financing through them, ranging from a “wait-and-see” policy to specific regulation and, in some cases, outright prohibition. In Iran, despite the publication of certain policy documents and draft legislation, a comprehensive definition and a clear framework in this area are still lacking, which has created conditions conducive to legal and economic risks. In light of the General Policies of the System, including the General Policies on Economic Security and the General Policies for Promoting Investment—premised on the protection and security of investment and on precise, clear, and specialized oversight, investigation, and adjudication of economic crimes and matters—examining the legal dimensions and the status of criminalization of initial coin offerings, as one of the novel forms of investment, is of particular importance. This study, employing a descriptive-analytical approach and relying on library research, examines the conceptual dimensions and operational stages of ICOs, explores the criminal law aspects, and elucidates the necessity of independent criminalization in Iranian law. Providing a transparent and efficient legal framework is an undeniable necessity that can, while protecting and securing investors, facilitate the lawful development of financial innovations in line with the System’s general policies.