The Central Bank of Iran Approves “Policy and Regulatory Framework” for Cryptocurrencies

The Central Bank of Iran (CBI) reaffirmed its role as a primary regulator for digital assets within the jurisdiction by approving the “Policy and Regulatory Framework for Cryptocurrencies”.

The new framework emphasizes licensing crypto brokers and custodians to comply with AML/CTF regulations and tax obligations under CBI supervision.

CBI governor “Mohammadreza Farzin” emphasized collaboration with other agencies including the Ministry of Economic Affairs & finance, to establish a regulatory mechanism for digital assets. The framework actively regulates the crypto industry while maximizing the economic benefits of digital currencies.

Iran has strategically allowed to use of cryptocurrency despite the fact that the U.S. has imposed sanctions on it to reduce its economic growth. In recent years, the Iranian government has also taken steps to regulate the cryptocurrency industry due to its ability to generate revenue and reduce economic pressure.

Another reason for regulating cryptocurrency in Iran is to explore its usage for international trade settlements to reduce the effect of sanctions. The government has also established strict rules to prevent money laundering through cryptocurrency.

Further, analysts also forecast that the price of Bitcoin will rise to $2.2 million because of the strategic attack on the gold market. This action took place just to regulate the digital asset industry and reduce gold’s value.

The Central Bank & Iranian government made a collaborative effort to put the country in a better position so they can deal with the global financial crisis by regulating digital assets.

Hemmati, Minister of Economic Affairs appreciates the government’s initiative to organize digital currency, specifically cryptocurrency, rather than restricting it.

He also criticizes the country’s internet filtering policies and emphasizes expanding the digital asset industry by urging crypto stakeholders to form a single platform to secure their interests and advocate a supportive regulatory environment, as the media states.

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Iran’s Cryptocurrency Market Thrives Amid U.S. Sanctions

Iranian investors have a significant portion of Iran’s gold market in digital assets, which is approximately $30 billion – $50 billion. Daily trading cryptocurrency volume is roughly $143 million in Iran.

Economist “Mohammad Sadegh Alhosseini” addressed that if Iranian crypto wallets become identifiable, then Iran can be subjected to sanctions, and the Central Bank of Iran will be accountable.

Alhosseini proposed that the government delegate certain responsibilities to private companies and associations to improve discipline within the country’s cryptocurrency market.