Local Crypto Startups Raise Voice against Iranian Government’s Crypto Trade Restriction

Cryptocurrency News

The Iranian Government is planning to restrict the limit of operations carried out by local crypto trade exchange platforms. Against Government’s action, crypto startups have been raising voices publicly and are suggesting to people that neither crypto trade is illegal nor the crypto industry in Iran is involved in any illegal activity. Government spokespersons and officials have been urged by startups to provide for comprehensive rules and regulations allowing the exchanges to do business freely.

Iran is a country which though has legalized crypto trading in the country but has been under immense pressure from the public and from the industry.

Recently the Iranian Ministry for Energy noticed that crypto miners were utilizing household electricity. This electricity was specifically for use by the public and had subsidies in it as well. However, because of the low charges, some miners were found stealing domestic energy for commercial use. The Government has now decided to impose fines upon those involved in stealing domestic energy.

Meanwhile, the Government is also looking at the possibility of restricting the business operations of the Iranian industry. It has been informed that crypto trading and exchange platforms would be directed by the Government on what to do and what not to do. Similar statements were backed and supported by various government officials on several occasions. This has led to criticism and agitation amongst the Iranian crypto community and industry.

Recently, Iran Fintech Association (IFA) which is a body representing organizations operating with the industry has raised its voice against the government’s initiative. IFA has written a letter in which it has recorded its dissent with the Speaker of the House of Senators i.e. the Parliament. In this letter, the body has stated that putting restrictions on crypto trade platforms is not the recommended solution to the problem. If any such decision is taken then it would be in the negation of the public’s right to do business and make their living at their will. Resultantly, people will be forced to do what they have to do even if they have to take their businesses underground.

The situation in Iran dilapidated when the Central Bank of Iran published a note which was aimed at Iran’s unrestrained crypto startups. In this note, the bank opined that only those crypto coins would be tradable that have been mined within Iranian territory. Any coin emanating from outside the Iranian borders cannot be exchanged or traded with by any crypto trading platforms operating locally. The leader of the House then summoned authorities looking after the matters of financials and securities to ensure compliance. They were also asked by the Parliament to be careful in dealing with such issues as they could be controversial.

Apparently, therefore, the Iranian Government has impliedly imposed a ban on crypto trading, particularly, foreign crypto coins.

However, Iranian Government officials have been saying that there hasn’t been any crypto ban imposed in the country.

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