Iran’s central bank reiterates ban on trade of cryptocurrencies

2021-05-08 20:08:30
Iran’s central bank reiterates ban on trade of cryptocurrencies

The Central Bank of Iran (CBI) has reiterated its ban on cryptocurrency trading, saying people would be solely responsible for losses they incur from buying and selling assets like bitcoin.

In an announcement issued on Wednesday, the CBI said that only cryptocurrencies that are mined through legal channels inside Iran would be authorized for processing payments under certain conditions.

“Authorized money exchangers and banks can settle forex payments intended for imports through the cryptocurrencies mined inside the country,” said the announcement.

It said the CBI would have no responsibility with regards to the risks associated with trading any kind of cryptocurrencies.

Bitcoin and other digital currencies have become popular in Iran in recent months amid a major international surge in prices.

That comes as cryptocurrency trading platforms have also benefitted from volatility in the Iranian stock market where trade has fallen sharply from highs seen over the summer.

However, the government and the CBI have yet to impose an outright ban on those platforms despite an ongoing crackdown on illegal mining of cryptocurrencies.

The CBI has announced plans for launching its own digital currency in the near future. The bank said earlier this year that it was studying various options for the rollout of a digital rial concurrent with similar drives in countries like China and Russia.

Laws and regulations adopted by the government last year allow the presence of foreign miners of cryptocurency in Iran. Those laws stipulate that crypto assets being mined inside Iran should use electricity supplies at premium prices and not those subsidized for domestic consumption.

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