Iran is currently fighting with high inflation and a strong devaluation of the Rial (IRR). The Central Bank of Iran (CBI) has now taken measures to prevent further devaluation of the state currency, reports Al Jazera. One of these measures is the complete blocking of rial payments on crypto exchanges-a drastic decision that makes over 10 million Iranian crypto investors.
Iran intensifies measures against crypto
According to Al Jazera, CBI demands full access to customer data and real-time monitoring of the users. In addition, the central bank would like to receive the authority to block accounts if necessary. The governor of the CBI, Mohammad Reza Faris, said:
“The CBI has received complete authority to monitor and regulate the cryptom market.”
Stablecoin Tether (USDT), which many Iranians use against inflation, is particularly affected. The CBI has introduced an artificial trading limit: If USt rises by more than 4 % a day, the trade is blocked. There are also regular discussions in Europe about a stronger regulation of USDT.
The background to the measures is the political and economic uncertainty in Iran. Inflation is currently over 40 %, and in October 2024 the Rial reached a historical low of over 940,000 errors per US-a drastic loss of value compared to the 600,000 Irr in October of the same year.
International sanctions of the West, additional pressure from the Trump government and persistent regional conflicts further increase economic instability.
Criticism of the decision of the CBI
The intensified regulation primarily affects young Iranians who Cryptocurrencies See the alternative source of income. Critics warn that the government is trying to keep control of financial transactions and sees crypto as a threat.
Eisa Keshavarz, CEO of the Ubitex crypto exchange, critically commented on Al Jazeera. He believes that Iranians will increasingly switch to foreign stock exchanges through this ban and that there will be an increase in secret financial activities:
“I think it is an inalienable right of people, their hard -earned money in gold, dollar, crypto, real estate or other assets to convert their purchasing power.”
Iran has an ambiguous relationship with cryptocurrencies. In the summer of 2021 the government banned Bitcoin (BTC) And crypto mining to prevent overloading of the power grid. Despite the strict regulation, a study by Chainalysis shows that Iran plays a growing role in the global cryptom market.