Iran’s Complex Cryptocurrency Regulatory Landscape: 2024 Update

Tehran, Iran - The Iranian cryptocurrency regulatory framework is a unique blend of encouragement and strict controls, shaped by the country’s economic situation and need to bypass international sanctions.

Influencing Factors

• Desire to bypass economic sanctions and facilitate international trade
• Need to explore alternative financial systems
• Economic sanctions and currency devaluation have driven growth in cryptocurrency adoption among Iranians

Regulatory Approach

• Legalization of cryptocurrency mining as an industry
• Prohibition on using cryptocurrencies mined outside of Iran for transactions within the country
• Domestically mined cryptocurrencies must be sold to the Central Bank of Iran (CBI)
• Cryptocurrency exchanges and trading platforms require licenses and must meet anti-money laundering (AML) and combating the financing of terrorism (CFT) standards

Concerns and Challenges

• Prevention of cryptocurrency misuse for illegal activities, citing concerns about financial security and stability
• Complexity in taxation of cryptocurrency transactions due to lack of clear tax guidelines
• Difficulty in tracking and reporting transactions for tax purposes due to absence of clear regulations

Future Uncertainty

• Iran’s cryptocurrency legislation landscape continues to evolve as the country navigates a delicate balance between recognizing the potential benefits of digital currencies and maintaining strict control over the sector
• The government seeks to align the industry with national economic goals and security concerns, making the future of cryptocurrencies in Iran uncertain but fascinating.