Cryptocurrencies are a popular investment among Iranians and estimates suggest that the number of those who already own one currency or another may reach 12 million. Most Iranian traders prefer the services of local crypto exchanges, says the CEO of one of them.
Iranians Said To Transfer $ 180 Million On Crypto Daily
Despite the lack of proper rules for most of the crypto space and the government's stance on it, a growing number of Iranians have been investing in decentralized digital money for the past few months and years. "It is estimated that between seven and 12 million Iranians own cryptocurrencies," according to Hamed Mirzaei, CEO of Bitestan, one of the country's crypto exchanges.
"Daily crypto transactions by Iranians are estimated at 30-50 trillion riyals ($ 181 million), while there is no regulation on cryptocurrency trading," Mirzaei was recently quoted as saying by Peyvast magazine. According to a report by the English-language business portal Financial Tribune, the executive also noted:
More than 88% of transactions are made through local exchange platforms.
This amount, Mirzaei explained, is higher than the total of all capital market transactions in the Islamic Republic. "It is estimated that between seven and 12 million Iranians own cryptocurrencies," the blockchain entrepreneur also revealed to Iranian media.
Mirzaei's comments come after Iranian officials earlier this year raised concerns about crypto assets attracting capital from traditional markets. In early May, digital currency trading platforms were accused of taking advantage of the volatile state of the stock market, where transactions had seen a significant decline since last summer. At that time, the Central Bank of Iran (CBI) advised Iranians should avoid cryptocurrencies, warning them that these investments will be at their own risk and expense.
Later that month, the leadership of parliament order the National Tax Administration to profile and report the owners of Iranian cryptocurrency exchanges. Majlis spokesman Mohammad Baqer Qalibaf stated that imposing a ban on cryptocurrency trading is not enough and called on the CBI to develop precise regulations for the sector. In July, members of the Islamic Consultative Assembly proposed a bill aimed at adopting rules for the foreign exchange market.
Cryptocurrency trading restrictions would deprive Iran of opportunities, Iranian fintech firms warned this year, voicing opposition to the government's attempts to curb the operations of crypto exchanges. In April, the CBI authorized National banks and currency exchange houses used locally mined cryptocurrencies to pay for imports, but authorities went after another currency trade. The startups insisted that cryptocurrency trading is not illegal and called on lawmakers and regulators to adopt rules that allow the sanctioned country to continue to benefit from decentralized money transfers.
Do you think the Iranian authorities will change their stance on cryptocurrency exchange and investment? Share your expectations in the comment section below.
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