Fintech startups in Iran have spoken out against government attempts to curb the operations of crypto exchanges. Iranian fintechs insist on lawmakers and regulators to develop rules that would allow the sanctioned country to continue to take advantage of decentralized money transfers. Recent statements by various authorities in Teheran have prompted a response from the Iran Fintech Association (IFA), representing companies working in the sector. Regulators worldwide are currently working to regulate the crypto industry.
“Curbing crypto would deprive the nation of potential opportunities.”
In a letter to the speaker of parliament, Mohammad Baqer Qalibaf, and the head of the central bank, Abdolnasser Hemmati, the independent industry body, stated, “Resorting to restrictive measures is the simplest, but not the best response to the issue. Doing so would deprive the nation of potential opportunities and create grounds for underground business.” Amid growing interest in cryptocurrencies, the Central Bank of Iran issued a warning earlier this month against unrestrained crypto trading. It also reminded Iranians about the ban on transacting with coins minted outside the Islamic Republic.
Iranian government calls on financial regulators to adopt a cautious approach.
The Majlis leadership called on financial regulators to adopt a cautious approach to dealing with the controversial aspects of the matter. “There are no regulations per se barring the work of crypto exchanges,” IFA now says, quoted by the Financial Tribune. “Government regulations only ban using cryptocurrencies for purchasing goods and services. It is explicit that trading cryptocurrencies is not illegal though traders are accountable for the ensuing risks,” the organization noted in its address to government institutions. This year, the central bank ordered Iran’s domestic payment settlement network, Shaparak, to block online payment gateways owned by coin trading websites.