Central Bank of Iran (CBI) Prohibits Country’s Banks from Crypto Dealings

In order to break the cryptocurrency crisis, the Central Bank of Iran (CBI) has prohibited country’s banks from crypto dealings. Thus, concerning over money-laundering, IRNA, the state news agency reported on Sunday.  

The IRNA (Islamic Republic News Agency) reported on Sunday, for both money laundering as well as fighting capital flight, the CBI has issued a ban notice. Subsequent to the notice, both banks and financial institutions will no longer enable crypto services.

According to the notice as reported by Reuters;

“Banks and credit institutions and currency exchanges should avoid any sale or purchase of these currencies or take any action to promote them”.

Further, the notice claimed that digital currencies, ‘have the option to be used for money laundering, supporting terrorism and exchange of sums between wrongdoers’. Thus, Iran’s official news agency reveals.

Significantly, Iran moved to formally unify its official and open market exchange rates in order to preserve Iranian rial, its fiat currency from dropping to a lower level. In addition, according to CBI, Iranian citizen will have a limit of holding foreign currency in cash i.e  €10,000 ($12,250).

However, last year, Telecoms minister, Mohammad-Javed Azari Jahromi sets up a team to create Iran’s own cryptocurrency. But then again, they also fear that the country is already lacking in technology, banking, and worst capital fight.

Meanwhile, there was a banking blackout at Iran when SWIFT global payments rail banned the domestic banks from its network in 2012. Since, last four years, a barrier of a nuclear deal by Barack Obama, the former US president lifted sanctions on Tehran in 2016.

As on 12th of May, the president of US, Donald Trump decides whether to restore those sanctions on Tehran. Since he has strained European to make a partnership with Washington to fix the deal.

Therefore, at present, Iran is developing its own blockchain based state issued cryptocurrency.

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Image Source: Central Bank of Iran

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