Central Bank Of Iran Bans Domestic Banks from Cryptocurrency Dealings

Central Bank Of Iran Bans Domestic Banks from Cryptocurrency Dealings

The Central Bank of Iran (CBI) has banned the country’s banks from offering services to crypto firms or dealing in cryptocurrencies. The apex bank cited money laundering issues.

The Islamic Republic News Agency (IRNA) reported Sunday that the CBI’s supreme committee, also in charge of curbing money laundering and fighting capital flight in Iran, has issued a circular prohibiting banks and financial institutions from transactions that enable buying, selling or promoting cryptocurrencies.

In its circular, the CBI further claimed cryptocurrencies ‘have the option to be used for money laundering, supporting terrorism and exchange of sums between wrongdoers’,

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An excerpt from the circular, as reported by Reuters, read:

“Banks and credit institutions and currency exchanges should avoid any sale or purchase of these currencies or taking any action to promote them.”

 

Iran has been exploring the development of its own blockchain-based, state-issued cryptocurrency, following the likes of Venezuela’s own oil-backed ‘Petro‘ as a means to circumvent economic sanctions.

Culled from CCN

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