Crypto Trade In Iran Is Curbed, Tens Of Millions Of People Are Even Investing In Cryptocurrency

JAKARTA – In the midst of the prohibition of cryptocurrencies in Iran, cryptocurrency enthusiasts there have skyrocketed. It is recorded that around 11 million citizens flocked to make crypto investments. Cryptocurrency enthusiasts there have seen a significant increase in recent months despite the government's curbs on cryptocurrencies.

“An estimated seven to 12 million Iranians own cryptocurrencies,” according to Hamed Mirzaei, CEO of Bitestan, one of Iran's crypto exchanges as quoted by Bitcoin.com News.

“Iran's daily crypto transactions are estimated to be between 30 and 50 trillion rials (181 million US dollars), while there are no regulations on cryptocurrency trading,” Mirzaei told Peyvast magazine.

Iranians prefer to use local crypto exchanges rather than global exchanges such as Binance, Coinbase, and Robinhood.

“More than 88% of transactions are made through local exchange platforms,” the Financial Tribune wrote.

Mirzei said the amount was higher than all capital market transactions in Iran. “It is estimated that seven to 12 million Iranians own cryptocurrency,” he told Iranian media.

The statement came after the Iranian government voiced concern that capital from traditional markets was turning to crypto assets. In early May, crypto trading platforms were accused of taking advantage of volatile stock market conditions. Since last summer the stock market has experienced a significant decline.

At that time, the Central Bank of Iran (CBI) issued instructions for Iranians to avoid cryptocurrencies. BCI also warns that crypto investments have high risks and will be borne by them.

The chairman of the Assembly, Mohammad Baqer Qalibaf revealed that banning crypto trading alone is not enough. He encouraged the CBI to draft appropriate regulations for the sector. In July, members of the Islamic Consultative Assembly proposed a bill aimed at adopting the rules for domestic crypto exchanges.

In addition, Iranian fintech companies also continue to encourage parliament and regulators to adopt rules that are more pro to the acceptance of cryptocurrencies because the government will also benefit including in terms of fast, cheap, and efficient money transfers.