Startups have spoken out against attempts by the government to curb the operation of crypto exchanges in Iran. Trading in cryptocurrencies is not illegal, Iranian fintechs emphasize, and are calling on lawmakers and regulators to develop rules that would allow the sanctioned country to continue benefiting from decentralized money transfers.
Iranian fintechs insist that trading in cryptocurrencies is not prohibited
Recent statements by various authorities in Tehran have led to a response from the Iran Fintech Association (IFA), which represents companies active in this sector. In a letter to the Speaker of Parliament Mohammad Baqer Qalibaf and the head of the Central Bank, Abdolnasser Hemmati, the independent industry body stated:
Recourse to restrictive measures is the simplest, but not the best, answer to the problem. This would rob the nation of potential opportunities and create grounds for underground business.
Amid the growing interest in cryptocurrencies, the Iranian central bank (CBI) warned against unrestricted crypto trading earlier this month and reminded Iranians of the ban on transactions in coins minted outside the Islamic Republic. Then it is Majlis The leadership urged financial regulators to be careful about the controversial aspects of the matter.
“There are no regulations per se that hinder the work of the crypto exchange,” says the IFA now, quoted by the Financial Tribune. “Government regulations only prohibit the use of cryptocurrencies to purchase goods and services. It is expressly pointed out that trading in cryptos is not illegal, although traders are responsible for the resulting risks, ”emphasized the organization in its address to government institutions.
Companies circumvent economic blockade with cryptocurrencies
In March, the CBI ordered the Iranian payments network Shaparak to block online payment gateways from websites for coin trading. Last week, Abdolnasser Hemmati said that crypto trading will only be limited to select exchanges that process cryptocurrency transactions for commercial purposes. However, the Iranian legislature is not only satisfied with a ban on crypto trading and has asked the central bank to develop precise rules.
The IFA agrees, saying that “all decision-making bodies need to pool their minds to develop comprehensive and efficient regulations.” It is proposed that special working groups be set up to include representatives from industry to examine the complex issue in all its dimensions to avoid repeating past mistakes.
The IFA also notes that companies have benefited from the use of cryptocurrency in their international transactions. Iranian companies have managed to bypass the US-imposed economic blockade and bypass restrictions on various industries, banking, shipping and insurance services. “Several companies have either used the technology to meet their requirements or invested in crypto currencies without any particular risk,” emphasized the trade association.
Where do you stand on the debate about crypto rules in Iran? Let us know in the comments below.
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