The Central Bank of Iran (CBI) has announced the regulation of cryptocurrencies, unveiling a comprehensive “political and regulatory framework for cryptocurrencies.”
The framework, approved on December 7, 2024, specifies that upcoming policies will be designed to help cryptocurrency traders adhere to local tax regulations and anti-money laundering laws.
Iran Moves to Regulate Cryptocurrencies Instead of Imposing Limits: Report https://t.co/qS4C9Kx4GR
— The Block (@TheBlock__) December 9, 2024
Minister of Economic Affairs and Finance (MEAF) Abdolnaser Hemmati said that the Iranian government is trying to adopt crypto assets by incorporating more regulations rather than outright restrictions.
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A unified regulatory approach
The CBI’s approach focuses on requiring cryptocurrency brokers and custodians to license and ensuring compliance with anti-money laundering (AML) laws, terrorist financing (CTF) regulations and local tax obligations.
CBI Governor Mohammadreza Farzin stressed that the project will aim to develop a comprehensive market for digital assets. Furthermore, it will be a joint project of several government organizations, including the MEAF.
Farzin emphasized that the framework has two distinct objectives, the first is the containment of risks arising from the adoption of cryptocurrencies and the second is economic empowerment.
Meanwhile, speaking at a national event on digital currencies, Hemmati said: “Attempts to impose limitations have failed. Instead, our goal is to manage the risks and capitalize on the benefits, including job creation and sanctions evasion.”
Hemmati also reiterated the need to update policies to help the digital economy in Iran thrive instead of being subject to bans. He called for the formation of a unified cryptocurrency stakeholders’ association to represent the industry’s interests and strengthen regulatory compliance.
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Iranian cryptocurrencies hold nearly a third of its gold market
Iran’s regulatory change is reportedly part of its strategic use of cryptocurrencies to counter US sanctions that have significantly limited the country’s access to global financial networks.
TIn recent years, the government has allowed regulated cryptocurrency mining, seeing it as a source of revenue to mitigate economic challenges. Iran has also used cryptocurrency for international trade deals, taking advantage of its ability to circumvent traditional banking systems.
According to a report, Iranian investors hold about a third of the country’s gold market in cryptocurrencies worth an estimated $30 billion to $50 billion. He added that the daily cryptocurrency trading volume in Iran amounts to nearly 100 trillion rials, or $143 million.
Meanwhile, tougher rules could expose businesses and exporters to the threat of US sanctions if Iranian wallets are traceable.
Economist Mohammad Sadegh Alhosseini noted: “If the CBI granted clearance and the Iranian wallets became identifiable, there would be a possibility that they would be sanctioned, and that would make the CBI responsible.”
Alhosseini He also suggested that the government should consider delegating some responsibilities to private companies and associations to promote discipline within the country’s cryptocurrency market.
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Trump’s Iran policies could affect oil markets in 2025
With Donald Trump’s imminent return to the White House, his administration has prepared to reform the American cryptographic and geopolitical landscape.
Recently, Trump appointed David Sacks as the White House’s “AI and Cryptocurrency Czar,” whose goal is to develop a legal framework within which the cryptocurrency industry can operate.
The former president had expressed his vision of making America a leader in the digital asset revolution.
However, Trump’s potential return to imposing “maximum pressure” sanctions on Iran could have repercussions for global markets, but particularly oil.
JP Morgan analyst Arun Jayaram believes such measures will reduce Iranian oil exports by up to 1 million barrels per day, a sharp decline from the current 1.6 million barrels exported under President Joe Biden’s more lenient policies.
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