The Central Bank of Iran has issued a warning against unrestrained crypto trading and reminded investors that only cryptocurrencies minted by licensed miners in the Islamic Republic can be used under limited circumstances. Traders will bear full responsibility for the risks, the bank cautioned, although spending crypto on imports through approved banks and exchanges remains legal.
Central Bank of Iran Speaks Against Crypto Investments Despite Plunging Stock Market
The popularity of cryptocurrencies among Iranians has grown significantly with the rising prices of the decentralized assets in recent months, Fars News Agency noted in a report. Crypto trading platforms have taken advantage of the volatile state of the Iranian stock market, where deals have seen a remarkable decline since last summer. Quoted by ILNA, a member of the High Council of Securities and Exchange which governs the stock market, Mohsen Alizadeh, noted:
The capital outflow is traceable. Liquidity has flown into parallel markets, including digital currency.
According to his figures, 1,500 trillion rials of capital, or $7 billion, has left the Iranian stock market through major shareholders and institutional traders. The Financial Tribune reported that the main index of the Tehran Stock Exchange, TEDPIX, has dropped 50% in the past few months. On this backdrop, the Central Bank of Iran has now recommended that Iranians avoid dealing in cryptocurrency, warning them that crypto investments would be at their own risk.
The CBI has effectively banned the use of foreign-mined cryptocurrencies. In the statement released this week, the financial authority reminded the Iranian public of an earlier government decision, according to which only cryptocurrencies mined in Iran, and in accordance with the law, can be transferred. “Authorized money exchangers and banks can settle forex payments intended for imports through the cryptocurrencies mined inside the country,”…