Regulation

Central Bank of Iran could ban using unapproved cryptocurrencies for payments

January 29, 2019, 6:46AM EDT

Central Bank of Iran could ban utilizing unapproved cryptocurrencies for payments in the Islamic Republic, according to a draft published by CoinDesk. The plan has yet been approved and will be discussed at the Electronic Banking and Payment Systems conference, which takes place today and tomorrow in Tehran.

The draft of the report says that it will not restrict people holding or transferring small amounts of approved cryptocurrency, although it is not yet clear which cryptocurrencies will be approved. The regulations set by Central Bank of Iran in April last year already limits possession of foreign currency by individuals to 10,000 euros outside of banks.

The report also states that "tokens pegged to fiat currencies, precious metals and commodities" are also prohibited as means of payment as reported by CoinDesk. Central Bank of Iran will also have a list of cryptocurrencies that are allowed to be traded on Iranian exchanges. The list will reportedly be updated every three months. Iran is anticipated to announce a state-backed digital currency to skirt sanctions at the same conference.

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