Iran Releases Crypto Regulations, Bitcoin and Ethereum is Now Recognized

Iran Releases Crypto Regulations, Bitcoin and Ethereum is Now Recognized

cryptocurrency regulations

A new report has made it known that the Central Bank of Iran (CBI) has released an outline of cryptocurrency regulations while removing some of its restrictions. The new regulations which were read out at Electronic Banking and Payments Systems Conference which took place in Tehran analysed the new guidelines to be followed by crypto-related traders and businesses.

Ethereum and Bitcoin Recognized

Although Ethereum and Bitcoin were mentioned in the publication, users have not been able to use them either online or retail stores as only Iranian rials are recognised as a form of payment. Iran’s own state-backed cryptocurrency and other regional virtual currencies were also mentioned in the publication.

The regulatory framework for virtual currencies which was tagged “Version 0.0,” was reportedly posted on the CBI’s website.

Introducing an Iranian Backed Stablecoin

The central bank firstly made known its plan to create it’s own cryptocurrency when the US placed strict economic sanctions on Iran. If the cryptocurrency gets developed, it could be the perfect means of escaping US sanctions.

According to the Informatics Services Corporation (ISC) which is an affiliate of the CBI, the virtual currency is to function on a private blockchain under the control of the central bank which will make it possible for the bank to adjust somethings in the blockchain without having to consult with the shareholders.

Also, the virtual currency is expected to make it easy to carry out payments between Iranian banks and other financial institutions in Iran that are active in the crypto space and it may end up being used as a form of payment by the Iranian public.

Russia is in Support

A cooperation agreement has also been carried out by Iran with Armenia and Russia. According to a recent report, Yuri Pripachkin, Russian signatory who is also the leader of the Russian Association of Crypto-industry and Blockchain said that: “According to our information, active development of an Iranian version of Swift is currently underway.”

In conclusion, Russia continues to work hand-in-hand with partners to make financial systems that are fully independent of Swift.