Media outlets on Monday published a letter signed by Mahmoud Vaezi, President Hassan Rouhani’s the chief of staff, in which the Central Bank of Iran has been asked to stop blocking cryptocurrency exchanges, putting an end to disagreements over the issue among authorities and businesses.
The letter refers to a petition signed by more than 60,000 people involved in the crypto business and instructs the CBI to stop blocking payment gateways used by crypto exchanges, IRNA reported.
The petition sent to Rouhani referred to the government's crypto regulations in which use of digital currency for purchasing goods and services is banned, even though its trade is not illegal so long as traders are accountable for the ensuing risks.
Petitioners proposed forming a working group in which government authorities, private sector representatives and market players discuss the issue in depth and offer solutions “in the national interest”.
Earlier in March and following stringent anti-money laundering measures, the CBI ordered Shaparak, the local payment settlement network, to block online payment gateways owned by crypto exchange websites.
The sharp increase in cryptocurrency investment in recent months and wild fluctuations in its prices prompted officials to announce measures to help protect investors' assets and prevent the likely consequences of further decline cryptocurrency value.
A study conducted by the High Council of Cyberspace shows total bitcoin trade in Tehran alone amounts to approximately 30-40 trillion rials ($130-174 million).
A recent study by the Tehran Chamber of Commerce, Industries and Mining, shows almost 12 million Iranians have invested in cryptocurrencies.
The crypto issue, however, is more complicated than previous regulatory challenges and no state body is willing or able to take responsibility.
The Majlis in a letter last week to financial authorities asked them to exercise caution in dealing with the controversial issue.
Lawmakers said imposing a ban on crypto trade in and of itself is not enough, asking the central bank to develop precise regulations vis-à-vis the function of crypto exchanges and block their access to payment gateways until rules are finalized.
In response, the CBI said it was in no hurry to announce new procedures for cryptocurrency exchanges. "The central bank is focused on a roadmap for managing the cryptocurrency market in collaboration with state institutions, including the High Council of Cyberspace," said the governor, Abdolnasser Hemmati.
Concerned about the fate of their businesses, market players warned policymakers about the negative impact of restrictive measures. "Resorting to restrictive measures is the simplest, but not the best, response to the issue [of cryptocurrencies]. Doing so would deprive the nation of potential opportunities and create grounds underground business."
Mining virtual currency is legal in Iran and miners are allowed to operate under rules approved by the government in July 2019.
So far 24 cryptomining centers and farms using 310 MW have permits from the Ministry of Industries.
Recently the central bank said banks and licensed moneychangers can use the digital currency mined only by authorized miners in Iran to pay for imports.
