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Iran prohibits bank cryptocurrency trading

Iran prohibits bank cryptocurrency trading. Like China and South Korea, Iran’s central bank has said that trading and promoting cryptocurrencies will no longer be allowed.

As reported by Reuters, the Iranian state news agency IRNA stated on Sunday claiming that banks, credit institutions, and currency exchanges “should avoid any sale or purchase of these currencies or taking any action to promote them.”

This comes after reforms were made to try to stabilize Iran’s currency, the rial, which has fallen to an all-time low because people are afraid that the US will put back in place sanctions that could hurt the economy. This month, Iran has made it illegal to change money outside banks and has standardized exchange rates. So now, trading in cryptocurrencies is also unlawful.

By banning cryptocurrency trading, Iran is most likely attempting to block anxious traders from turning away from the rial in favor of bitcoin and its ilk. It’s a similar strategy to China’s recently used, but Iran’s currency moves differently. China said it didn’t allow ICOs or trading in virtual currencies because of “financial risks.”

Earlier this month, a paper was published by an Islamic scholar that declared bitcoin permissible under Sharia Law.

The study by Muhammad Abu-Bakar of Blossom Finance in Indonesia says, “Bitcoin is allowed in principle because its market value is seen as valuable on global exchanges, and it can be used as payment at a wide range of stores.” “Moreover, many private individuals accept bitcoin as a medium of exchange in their private transactions.”

The publication of Abu-Bakar’s report coincided with a dramatic $1,000 spike in value for bitcoin, with some speculation around a possible connection between the two events.
Other experts thought a prominent institutional investor might have been behind the rise.

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