The Central Bank of Iran has banned banks under its control from carrying out any transactions with digital currencies. “The use of bitcoin and other types of cryptocurrencies is prohibited in all financial institutions in the country,” the statement said.
The bank believes that cryptocurrency can become a tool for money laundering and terrorist financing.
The central bank has prohibited “all branches, subsidiaries of banks, credit institutions and exchanges” from selling and purchasing cryptocurrency or in any way promoting cryptocurrency-related activities. Measures provided for by law will be taken against offenders.
The cryptocurrency ban is seen as a measure to strengthen the national currency, the Iranian rial, whose exchange rate hit a record low in April. Previously, Iranian authorities combined official and open market exchange rates and banned changing money outside banks in order to increase the value of the rial.
Meanwhile, the depreciation is explained by fears that the United States will again impose sanctions on the Islamic republic. US President Donald Trump will decide on May 12 whether the US will reimpose economic sanctions on Iran.
At the end of February Iran announced plans to launch a state-backed digital currency to combat the economic crisis in the Islamic Republic and circumvent sanctions USA.
Read also: Bittrex exchange blocked accounts of users from Iran, North Korea, Crimea and Syria
According to http://www.rttnews.com
You May Also Like
SEC rejects all Bitcoin ETF proposals
The US Securities and Exchange Commission (SEC) has rejected a proposal by ProShares, Direxion and GraniteShares to create Bitcoin trading investment funds (ETFs). The commission provided the same reasons for refusal to all three companies.
Japan's FSA reports 'quasi-operators' of crypto exchanges in the country
The Financial Services Agency (FSA), Japan's financial regulator, previously gave permission to 16 crypto exchangers to operate in the country. The FSA has also given permission to 16 other exchanges, including Coincheck, to provide cryptocurrency trading services, even though their license applications are still pending.
