Published: Tue, April 24, 2018

Iran bans cryptocurrencies as Rial hits all-time low

Iran bans cryptocurrencies as Rial hits all-time low

The Iranian central bank has issued a ban preventing other banks from trading in cryptocurrencies such as bitcoin.

In the circular, Iran's central bank has claimed that digital currencies "have the option to be used for money laundering, supporting terrorism and exchange of sums between wrongdoers", revealed IRNA. The central bank chose to issue the ban in order to prevent money laundering and the transmission of finances for criminal and terror-related purposes.

In November past year, the secretary of Iran's High Council of Cyberspace (ICC) said they "welcome Bitcoin".

Iran moved this month to formally unify its official and open market exchange rates and banned money changing outside of banks, after its currency, the rial, plunged to an all-time low on concerns about a possible return of crippling sanctions.

It said the government's money-laundering committee had taken the decision in late December and it was now being put into effect.

In February, the head of the Ministry of Information and Communications Technology in Iran was signaling a different sentiment. The central bank has also limited the permissible amount of foreign currency - in cash- to be held by an Iranian citizen to €10,000 ($12,250). At the time, it told Iranian state media that the "wild fluctuations" of crypto-currencies, together with "pyramid schemes", had made the virtual currency market "unreliable and risky".

Bit Coin does not abide by any governing rules and regulations in any countries and no government or bank round the globe monitor or supervises it.

"In a meeting with the board of directors of the Post Bank of Iran on digital currency based Won blockchain, the necessary measures for the pilot implementation of the country's first digital currency were set out by using the country's elite capacity".

The price of Bitcoin is now $8,895.49 (£6,373.75).

Like this: