Iran Blockchain Association has strongly condemned recent moves to block websites, applications and other online platforms active in cryptocurrency trade
"This is not the solution. Experience has it that restrictive measures against innovative technologies are costly but unsuccessful. It is apparent that technology moves forward," the association said in a statement.
Earlier in March, in line with the government’s anti-money laundering measures the central bank ordered Shaparak, the local payment settlement network, to block online payment gateways owned by crypto exchange websites.
As per law cryptocurrency trade is banned in Iran. However, recently the Central Bank of Iran said banks and licensed moneychangers can use the digital currency mined by authorized miners in Iran for imports.
"Market players have been trying to convince the CBI, the government and parliament to set rules for cryptocurrency trade. However, nothing concrete has happened so far."
The association referred to official concerns about protecting the people’s financial interests, saying that blocking local platforms will not help as people will shift to foreign platforms and possibly put at their assets at risk.
The group censured those who claim that the cryptocurrency market had undermined Iran’s capital market. "Officials are expected to inform the public about risks and rewards of investing in any market. It is improper to blame cryptocurrencies for the weak performance of the stock market."
Virtual currency is gradually becoming popular in many countries but has gained special traction in Iran after former US president, Donald Trump, unilaterally withdrew from the Iran nuclear accord with world powers in 2018 and imposed a near economic blockade.
While trade in virtual currency is banned, unofficial and anonymous transactions in digital currency has allowed individuals and companies to evade the US restrictions that have crippled Iran’s trade and banking ties with the international financial system.
Cryptocurrency gained further traction among Iranians in the past few weeks as its value skyrocketed amid Iran's sluggish financial markets.
Despite the ban, mining virtual currency is legal and miners can operate legally under rules approved in July 2019. So far 24 cryptomining centers and farms using 310 MW have operating permits from the Ministry of Industries, Mining and Trade.
