Countries are moving towards are regulating the crypto industry to include it in the existing financial system. However, some countries still consider crypto to be a threat to their financial sovereignty. The Middle Eastern country Iran has proposed a raft of measures that seek to bring crypto under the existing currency smuggling and foreign exchanges. The new laws will require all cryptocurrency exchanges to obtain a license from the country’s central bank.
Lawmakers propose strict guidelines for crypto exchanges.
According to a report by local outlet ArzDigital, the Iranian lawmakers seek to bring digital currency under the existing currency smuggling and foreign exchange regulations. The news outlet further revealed that the crypto exchanges would also have to stick to tough guidelines put in place for the fiat currency exchanges. The laws will put digital currency traders at risk of prison sentences or severe fines if found guilty of breaking them while in Iran. The proposed laws will put crypto traders at risk of prison sentences or severe fines if found guilty of breaking them while in Iran. Those outside Iran will be faced with international sanctions.
If passed, laws will force crypto exchanges to shut down.
If passed, the laws proposed by Iran lawmakers will pose the danger of shutdown for crypto exchanges. While it requires them to be licensed, the laws did not lay down the due process or the requirements. The proposed laws also failed to account for foreign crypto exchanges, which control the largest stake in the market. The government claims that the move is meant to restrict foreign outflows. They will also help the government to combat the increasing decentralization of financial activities as more citizens have turned to crypto in the harsh economic times during the pandemic. On the contrary, it is suspected that the oil-rich country has been using cryptocurrencies to evade sanctions imposed by the US administration.