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Iranian authorities block bank accounts for illegal foreign currency and cryptocurrency transactions, and shut down mining farms.
In early May, Iran’s Central Bank announced a ban on the trading and promotion of cryptocurrencies mined outside the country. The Central Bank joined forces with Iran’s Ministry of Intelligence and National Security to combat the illegal trading of crypto-assets. Earlier, the Islamic Republic of Iran News Agency (IRNA) published a warning to banks and credit institutions not to engage in transactions involving digital assets.
Iran froze 9,219 bank accounts belonging to 545 people, totaling about $2 billion, in tightened inspections for suspicious foreign currency and cryptocurrency transactions. At the same time, authorities shut down about 7,000 mining farms operating without a license. The Iranian energy company Tavanir reported that these farms had a combined capacity of 645 MW, resulting in a power shortage in the country.
In April, the Iranian government announced its intention to pass a law that would increase penalties for illegal cryptocurrency mining – up to large fines and imprisonment.
The authorities’ harsh measures against the crypto industry are due to the fact that the state’s currency has reached a record low level of demand. The situation is exacerbated by economic sanctions from the U.S., so Iranian authorities are trying to curb the outflow of funds into crypto-assets.
Iranian Deputy Minister of Communications Reza Bagheri Asl recently said that the government will never recognize cryptocurrencies as legal tender. However, the Central Bank of Iran does not exclude the possibility of launching a digital rial, which will operate on the basis of distributed ledger technology.
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