Iran is placing a ban on cryptocurrencies over “money laundering” fears… *yawn*
The Central Bank of Iran is banning cryptocurrency trading, following in the footsteps of India.
The Islamic Republic News Agency (IRNA) reports that the government is stopping the country’s banks offering any crypto-related services.
Usually, when a government announces a crackdown on cryptocurrency, it negatively impacts the market.
In this case, however, the market continues to show a healthy recovery, signaling that traders simply don’t care what Iran thinks about crypto.
According to IRNA, the news outlet quotes the CBI as saying:
“Banks and credit institutions and currency exchanges should avoid any sale or purchase of these currencies or taking any action to promote them.
“Cryptocurrencies have the option to be used for money laundering, supporting terrorism and exchange of sums between wrongdoers.”
In February, the head of the Ministry of Information and Communications Technology in Iran was signaling a different sentiment.
Mohammad-Javad Azari Jahromi was hinting that country may be considering a state-backed cryptocurrency.
Posting from his official Twitter account, Mr. Javad Azari said:
“In a meeting with the board of directors of Post Bank on digital currencies based on the blockchain, I prescribed measures to implement the country’s first cloud-based digital currency.”
This move comes amidst growing economic turmoil for Iran.
The country’s fiat currency, the rial, is currently in a nine-month-long downward trend.
Last week, the rial fell 60,000 to the dollar, down from 36,000 rials per dollar in September last year.
As a result, the country has banned dollar exchanges in the capital Tehran.
The CBI is also attempting to tether the rial to 42,000 per dollar.
Enough of the FUD
Meanwhile, the crypto markets unfaltering recovery continues, despite the fear, uncertainty, and doubt (FUD) in Iran.
Values for Bitcoin have risen by roughly 38 percent from lows of $6500 seen in early April.