A recent report by the Central Bank of Iran indicated that the government could ban the use of unapproved cryptos for the use of payment anytime soon. This could be a step ahead in protecting the Rial backed token the country intends to launch soon.
Ban of Unapproved Cryptocurrency For Payment In Iran
A recent report of the Central Bank of Iran, titled, “Obligations and Rules Regarding Cryptocurrencies” clearly stated that any cryptocurrency wallet that is used only for holding and transfer of cryptocurrencies and integrating any kind of service in wallet using cryptocurrency is forbidden.
In essence, the implementation of the report could see the use of unapproved cryptocurrencies for payment banned soon. The report did not specify a particular cryptocurrency. However, this could be the use of major cryptocurrencies for transactions in the country. Though the report is not yet passed into law, it will be discussed during the electronic banking and payment system conference in Tehran, slated to start on the 29th of January.
Further, the report stated that the Central Bank would not directly ban anyone from personally holding or transferring a small number of approved cryptocurrencies. However, this could see Iranians restricted from holding a large number of cryptocurrencies as it is officially banned to hold more than 10,000 euros outside of their regulated banks.
This new law, if it is implemented, could be detrimental to the growth of the crypto market in the country according to a crypto enthusiast as noted. The Tehran based crypto enthusiasts and developer stated in anonymity that this may be worse specifically for a business that receives Bitcoin from foreign customers since there is a Know Your Customer KYC procedure with foreign customers and now business won’t be able to have their Bitcoin directly.
Goal To Protect The Crypto-Rial
The plan of the Central Bank of Iran to ban unapproved cryptos in the country could be a measure to protect the status and the use of its national currency, the Crypto-Rial. Also, a recent report had revealed that the Central Bank of Iran plans to issue its National Digital Currency backed by Rial, its local currency. This is slated to be announced during the Electronic Banking and Payment System Conference that starts on the 29th of January.
Also, the report stated that Iranian crypto exchanges are now obligated to apply for licenses of operation, though the procedure for this was not stated. The apex bank also stated that it would create and update a list every three months for approved cryptocurrencies in the country.