SEO Chief: Capital Market Avoiding Cryptocurrency, for Now

EghtesadOnline: Iran's Securities and Exchange Organization has no plan for hosting cryptocurrency trade in the capital market, head of the organization said.

News ID: ۷۸۶۸۵۱

12 August 2021

"The SEO [so far] does not have plans for the entry of cryptos in the stock market. However, we will look at the issue if the Central Bank of Iran regulates cryptocurrencies," Mohammad Ali Dehqan was quoted as saying by IBENA.

"Government rules regarding the mining of cryptocurrencies is the only regulation about cryptos. Use of the mined cryptocurrency by the people is what the CBI should be dealing with," Dehqan said.

The CBI has made no announcement about the usage of cryptocurrencies, therefore at this stage there is no possibility of the digital currency trade in the capital market, the ISEO official added.

In 2019 the government recognized cryptomining as a legal industry. Miners had to apply for a permit from the Ministry of Industries. However, trade in crypto is banned even though recently the central bank said banks and licensed moneychangers can use the digital currency mined by authorized miners in Iran to pay for imports.

Last week, the Vice Presidency for Legal Affairs said cryptocurrency regulations approved by the government in 2019 do not prohibit the swapping of cryptocurrencies, stressing that the law states that digital currency cannot be used for payment inside the country.

Earlier in May, the Majlis in a note to financial authorities asked them to exercise extra caution in dealing with the controversial virtual currency. It urged capital market authorities to create efficient investment vehicles for legal crypto trade.

Lawmakers say imposing a ban on crypto trade in and of itself is not enough and the central bank should develop precise regulations vis-à-vis the function of crypto exchanges and block their access to payment gateways until rules are clear and finalized.

The sharp increase in cryptocurrency investment in recent months and wild fluctuations in its price prompted officials to announce measures to contain the likely consequences of decline in its value.

A study conducted by the High Council of Cyberspace said total bitcoin trade in Tehran alone is approximately 30-40 trillion rials ($130-174 million).

Another recent study by the Tehran Chamber of Commerce, Industries and Mining showed 12 million Iranians have invested in digital currencies whose future, at best, is uncertain.