Cryptocurrency

What is Taking Place Behind the Doors in Iran on Cryptocurrency and Blockchain?

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The Central Bank of Iran was under pressure for over months, and the bank at-last in January released their prototype framework on the cryptocurrency legality and has also asked for the feedbacks and critiques.

Some considered the framework as a step forward while several growing local crypto community members are unhappy with most of the details. Some members think that the framework might badly put limitations on people and businesses which are operating in the fast-growing space if the framework is implemented in its existing form.

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Few others think that the planned framework might ban the use of global cryptocurrencies and also various coins as a method of domestic payments. The domestic payments need cryptocurrency exchanges to take permissions. Therefore it opens a new way for rent seekers in a country which includes too much of it; the word forbidden has been used a lot in the framework which could involve the threat of criminal prosecution.

Nearly, more than three dozen members of the local community on March 9 have submitted their proposals to the central bank in the form of joint document which includes the 51 problems which were discovered in the 13-page draft framework of the regulator.

As of now, there is nothing much the community can do. The destiny of their current businesses, potential ideas and the desire for decentralization is now in the hands of large and highly complex decentralized power structures.

There were some issues between Iran and the US in 2018. These issues caused the central bank to ban all cryptocurrencies and crypto related operations in Iran. The issues between the two countries started deteriorating, and several crypto traders were arrested for trading in Iran. These crypto traders were then convicted to spend most of their life in prison and also imposed huge fines on them.

The Iranian President took part in various meetings to support crypto ecosystem, and the President and others of Iran have noticed the huge potential in this crypto space. This is the main reason why banks in Iran are trying hard to make Iran adopt crypto space.

Leading banks of Iran have launched gold plated cryptocurrencies to sell their bad assets and general liquidity.

Many organizations are trying to convey their opinion over the cryptocurrency regulations which does not cancel the central bank’s restrictive possibilities, rather will impact its ability to legalize or support operations within this area, Said Khoshkabt the general director of the distributed account book in Tehran mentioned.

“In other words, we have one rule- in order to implement something; every person needs to be onboard, while only one needs to stop the movement”,

Khoshbakht served as an advisor to informatics services corporation which is associated with the central bank.

Further, he said, all the upper class and lower class entities need to speak on how the framework should be prepared. He believes that the cryptocurrency in Iran can only be controlled by the decision of Central Bank.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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