The minimum capital requirement for setting up foreign exchange shops has been increased to 250 billion rials ($1.08 million) in large cities and 130 billion rials ($565,000) in other cities, the Central Bank of Iran announced on Monday.
The measure is part of amendments to foreign exchange shop regulations approved by the Money and Credit Council, the highest body of financial monetary markets in Iran, earlier this month.
Previously, applicants were required to deposit a minimum of 120 billion rials ($521,000) for starting a foreign exchange shop in large cities [Tehran, Isfahan, Ahvaz, Tabriz, Shiraz, Mashhad, Karaj, Qom and Urmia] and 60 billion rials ($260,000) in other locations.
Forex shops have been given two years to increase their capital requirement in accord with the latest updates.
As per the announcement, moneychangers affiliated with banks and credit institutions are allowed to open branches. However, they need to provide 75% of the capital requirement based on the branch's location.
Bank-affiliated moneychangers are also allowed to offer currency trade services in bank branches, after receiving permissions from the central bank.
As per the announcement, the competency of bank-affiliated foreign exchange shop's managers needs to be verified by the Central Bank of Iran.
According to the latest update by CBI on March 4, a total of 419 exchange houses have obtained a license and are authorized to operate.
Crypto Trade
Moneychangers are also required to follow CBI rules, in case they are planning to use local online trading platforms for foreign exchange operations, or trade cryptocurrencies mined inside the country [by licensed mining units] for the settlement of import bills.
It’s the first time CBI has not explicitly barred foreign exchange shops from using online platforms, even though it has not yet published regulations about online trading systems and transactions in cryptocurrencies.
In recent months, Iranians have been buying bitcoins and other digital currencies in increasing numbers, as parallel markets, such as forex, gold and shares, lose luster.
This has prompted authorities to craft directives for the crypto business. The issue of cryptocurrencies, however, is more complicated than previous regulatory challenges. As a result, no state body wants to get involved in case any problem arises, which is highly likely given the volatile and unstable nature of the crypto market.
Parliamentarians have urged the government to submit a bill on cryptocurrency trade as soon as possible.
Earlier this month, CBI announced that it is in no hurry to announce new procedures for cryptocurrency exchanges. It said that it’s planning a framework for managing the crypto market in collaboration with state institutions, such as the High Council of Cyberspace.
The council, however, says the central bank should develop regulations for setting up a cryptocurrency exchange, without first addressing investors’ concerns about the volatility in the value of digital assets.
Media outlets last week published a letter signed by Mahmoud Vaezi, the presidential chief of staff, in which the CBI was asked to stop blocking the formation of a cryptocurrency exchange. The call was in response to a petition signed by 60,000 plus people involved in the crypto business.
