Cryptocurrency Legality Issues in Iran Are Increasing: New Regulations Coming Soon
The Central Bank of Iran, after months of waiting, eventually issued a draft document discussing the legal aspects of using crypto coins in January of this year.
Whereas for some people the document was a step in the right direction by the government, many Iranian crypto enthusiasts aren’t pleased with some details. In their eyes, the document is a way to strictly limit the prospects of individuals and businesses in the sphere of cryptocurrency and blockchain.
One of the most worrisome points in the proposal was prohibiting the application of internationally-used crypto coins and digital tokens as a form of payment in the Islamic Republic of Iran. In addition, crypto exchanges will be required to have special licenses.
Local crypto users began improving the proposal of the country’s Central Bank. On March 9, 2019, in a joint document crypto users sent their comments on the paper discussing over 50 issues in the government’s 13-page-long regulatory framework draft.
The future of their blockchain and crypto-related businesses and individual dreams depends on the Government of Iran.
The issue of crypto regulations occurred since traditional money in the jurisdiction became a matter of safety.
The current president of Iran, Hassan Rouhani, took actions to halt the decline of the Iranian Rial as a result of seemingly upcoming sanctions by the United States last year. The Central Bank of Iran was instructed to ban crypto coins in the country based on a request of the government. Crypto tools (exchange, crypto tracker) and crypto mining were also banned.
In May, the president of the United States, Donald Trump, posed severe sanctions on Iran. This resulted in a currency crisis and inflation began as the national currency reached all-time lows several times.
Many crypto traders were imprisoned and sentenced to jail for a long time. Some high-level investors were even executed.
The Iranian Government perceives crypto coins as a way to overstep the US sanctions, however, the investors understand that that’s not what cryptocurrencies are for.
The Central Bank of Iran is launching a cryptocurrency pegged to the country’s national currency, Rial. The president of the country has participated in high-level crypto conferences and banks in Iran have already established a gold-backed crypto coin.
Many entities in the country are trying to have a say in the crypto regulations in order to profit them. This makes establishing regulations in Iran a hard job. Yet, recently there have been rumors that the regulations will be set in place by the central government to avoid the entities’ influence.
Saeed Khoshbakht, the CEO of an Iranian Blockchain solution, told a crypto news outlet that in Iran all entities need to like the proposal in order to set it in motion. On the other hand, only one objection can influence the decision.
In Khoshbakht’s mind, it is best that the decision-making process of crypto regulations stays in the hands of the Iranian Central Bank. Otherwise, the issue might get even more complicated.
Nevertheless, crypto investments are still a great opportunity to make profits. In order to monitor your crypto funds efficiently, you should check out this crypto portfolio tracker guide.
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