Iran plans to ban cryptocurrency

According to Iranian government, cryptocurrency is a commodity, which can be illegally smuggled across borders. The government has submitted a law to strictly regulate digital currencies. Iranian businessmen currently using Bitcoin and other cryptocurrency will be facing insecurities.


The law does not concern using cryptocurrencies as such, but aims to regulate cryptocurrency exchanges. Those, who wish to trade crypto currency in Iran, must be licensed by the Central Bank of Iran and follow many legacy guidelines. However, it is not yet clear what conditions must be fulfilled and what the license looks like.

According to analysts, the aim of the government is to stop outflow of funds abroad, which is currently mostly done through cryptocurrency, that is through blockchain. The Iranian government plans to stop uncontrolled outflows of capital from the country. However, the problem is that most crypto operations serving Iran are legally based outside of the country. It remains unclear how the government plans to regulate these cases. In the end, investors may avoid trading in Iran more than they have been up until now.


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