Trade in cryptocurrency and bitcoin is legally prohibited and no permission, either from Central Bank of Iran or other regulatory bodies, has been granted to websites that provide crypto currency services, says the deputy for international and legal affairs at the Iranian Cyber Police, locally known as FATA.
Colonel Hossein Ramezani said the earlier warning by his boss, Brigadier General Kamal Hadianfar, not only pronounces that bitcoin is legally banned in the country but also that all types cryptocurrencies are illegal.
The CBI in April officially prohibited all financial institutions from dealing in cryptocurrencies. The stated reason was concerns about money-laundering, but officials have since conceded that the currency crisis that started in spring was the main reason behind the crypto ban.
The ban also obliges money changers to refrain from "any measures that will facilitate or promote virtual currencies."
Ramezani pointed to opportunists and scammers who are active in virtual currency websites and said uninformed folks always fall prey to their fraudulent ways that resulted in a growing number of complaints.
“Cryptocurrencies are considered as a means of helping cyber criminals around the world … because criminals use this technical and financial tool to mask their true identity”
The Need for Robust Law
The FATA official emphasized the critical need for appropriate laws and rules passed by the Majlis, CBI, and National Center for Cyberspace to regulate the activities of the cryptocurrency industry.
Officials in Tehran have customarily been pessimistic about cryptocurrencies and have often warned the public of the risks involved . Plans are underway by the Telecoms Ministry and the CBI to create a national cryptocurrency.
The CBI was expected to announce its new regulatory framework for cryptocurrencies in October. So far that has not happened.
