The Central Bank of Iran (CBI) suddenly blocked payment gateways for cryptocurrency exchanges, marking the third such restriction in recent months.
The restriction came weeks after the central bank’s decision to freeze the bank accounts of a cryptocurrency exchange and the subsequent suspension of payment processing services in November. This was due to concerns about speculation in the Tether (USDT) market and money laundering risks.
The CBI statement came as the Iranian government reunited foreign exchange rates as the rial hit a record low against the US dollar on Saturday. However, industry leaders condemned the move as “unprofessional” and harmful to the country’s digital economy.
Operators of the cryptocurrency platform warned President Masoud Pezeshkian in an open letter that the restrictions threatened more than 5,000 skilled jobs and dozens of knowledge-intensive companies in the sector.
These restrictive and destructive decisions in technology policymaking not only eliminate Iran’s limited opportunity for economic growth through new technologies but also drive away the country’s most important asset – its capable human capital.
Meanwhile, the CBI’s intervention targets Iranian currency payment channels used by digital currency exchanges. Officials have previously warned payment service providers about unauthorised instant settlement systems that operate outside the banking structure and help avoid official channels and sanctions.
Industry supporters argue that cryptocurrency trading has provided Iranians with investment opportunities amid high inflation and limited traditional options. They also argue that blocking cryptocurrency payments stands in stark contrast to the authorities’ promises.
