It is stated that the money smuggling law in Iran is used to restrict crypto exchanges. It is reported that the law shows that cryptocurrency trading is risky, and this situation pushes local investors to doubt. Following this law, a proposal called “crypto money smuggling” is expected in the parliament.
According to a local news site called ArzDigital; Iranians who deal with cryptocurrency transactions may face prison sentences or American sanctions. This situation obliges all crypto exchanges to obtain a license by the Central Bank.
Therefore, it is stated that if newly opened or existing exchanges do not obtain a license, they will either be closed or face serious penalties. The aim is to comply with the regulations that many foreign exchanges are subject to.
It is not easy to apply the money trafficking law in Iran
Due to the fact that most crypto exchanges in the country operate from abroad, it is not easy to enforce the money smuggling law. Unlike local money exchanges, many crypto exchanges are outside the country. At the same time, it does not make sense to subject decentralized structures to regulations.
Actually, getting the local license document is not a problem here. The real problem that may cause problems is the transactions done by the stock market … Regulators, that is, the law makers, should consider this. All this puts the implementation of the Iranian money trafficking law into a difficult situation. Imposing regulation on a decentralized exchange makes the job even more complicated. Because it is not difficult to work from outside the country and serve the Iranian market.
For example, the UtByte stock exchange owned by Iranian Reza Khelili Dylami is registered in Sweden. This stock exchange, which is shown as a fraud by Iran, supports cross-border payments despite being a local licensee. According to the Chainalysis report, UtByte has traded over $ 13.8 million with local exchanges.
On the other hand, it is a fact that Iran has been seriously pressured by the Trump administration to use crypto to bypass international sanctions. It is stated that there are serious indications that local communities have been helped by some exchanges to circumvent sanctions, while the policy of local stock exchanges is still under scrutiny.
While restrictions continue at full speed, crypto projects marketing companies also support cross-border payment platforms in Iran. As it is known, Tron leader Justin Sun supports the Cryptoland stock exchange in Iran through the Persian Tron Community.
Cryptoland co-founder Hassan Golmohammadi states that the stock market is located abroad, but the majority of its customers are local. According to Babak Jalivad, editor of a local crypto blog site called CoinIran, all this makes it almost impossible to enforce the money trafficking law. It is stated that the crypto world in Iran is growing day by day and its adoption has increased significantly.