Iran issues Regulations on Crypto, thus lifting the ban

During the eve of the Electronic Banking and Payment Systems conference in Tehran, Iran announced regulations on cryptocurrency, thus, lifting the cryptocurrency ban, according to reports.

The Central Bank of Iran published a ‘Version 0.0’ of its regulatory framework for cryptocurrencies on their website. It states that the ban has been lifted but restrictions have been imposed on its use in the country. The framework was aimed to organize and define boundaries of ongoing crypto operations in the country and allowing traders to plan for their future.

The bank has authorized and recognized global cryptocurrencies that include bitcoin and those owned by central banks. They have also authorized areas and disciplines related to cryptocurrency like Initial Coin Offerings (ICOs), cryptocurrency wallets, cryptocurrency exchange bureaus and cryptocurrency mining.

There have also been reports where the country has been in conversation with 8 countries over using cryptocurrency in monetary transactions. The acting head of Iran’s Trade Promotion Organization (TPO) told Tasnim news agency on Monday:

“Starting a new chapter in its international monetary transactions to circumvent U.S.-led sanctions, Iran is in negotiating the use of cryptocurrency in its financial transactions with eight countries.”

The eight countries include Switzerland, South Africa, France, England, Russia, Austria, Germany and Bosnia.

Although the regulations come out as a positive light to the global acceptance of crypto, there are a few regulations which have upset the crypto community. One of them is a limit to the value amount of cryptocurrencies one can hold, similar to the rule barring citizens from holding more than 10,000 euros.

The reason behind this prohibition is an effort to reduce further value loss in the rial, the Iranian currency.

The central bank’s final regulatory framework is still yet to be fully implemented, but even with the noise from the community, this is a move forward for global cryptocurrencies.

Image Courtesy: Wikipedia

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