Iran to limit crypto exchanges

Share On Facebook
share on Linkedin

Parliament proposes amendment to ‘Currency Smuggling’ laws

Iran Govt

Iran’s parliament has moved to limit the development and spread of cryptocurrency exchanges within the Islamic republic.

The amendments proposed by the government to the current Currency Smuggling laws would include cryptocurrencies for the first time. This would require crypto exchanges to obtain a licence from the Central Bank of Iran in order to operate, after which they would have to follow the longstanding regulations which currently apply to foreign currency exchanges.

The move will put added pressure on Iran’s budding crypto entrepreneurs. If they fall foul of the new restrictions, they could on the one hand face imprisonment in Iran or, on the other, become targets for American sanctions.

These sanctions have contributed to cripple the already weak Iranian economy. Following years of official resistance, denial and parliamentary wrangling, measures were recently approved that would reconstitute its currency. By removing four zeros from the Rial and relaunching it as the Toman, the Iranian government hopes to reduce the hyperinflation ravaging the economy.

Within this context, the privacy and decentralised nature of cryptocurrencies have proved increasingly popular. Reports emerged recently that some of Iran’s crypto exchanges were charging premiums on transactions of up to 300 per cent, so desperate were everyday Iranians to find a potential store of value free from the government’s grasp.

The Iranian government, therefore, wary of this threat to its authority and the capital outflows facilitated by cryptocurrencies, is moving ever increasingly to limit the activity and growth of Iran’s over-the-counter crypto businesses.

 

For more news go to currency.com

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20200604 22:10:10