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Iranian Traders send $2.5 billion out of Iran to bypass central bank’s ban

2.5 billion dollars has been sent out of iran for buying digital currencies by few users of cryptocurrency in the country

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The member of Iranian parliament, Mohammad Reza Pourebrahimi,  who is also the chairman of the Economic committee has revealed that Iranian traders have sent approximately $2.5 billion out of Iran after the central bank banning local banks to trade digital assets.

The official in an interview with Ibena.ir news said as follows:

“Based on the existing data, few people in Iran are cryptocurrency users and more than 2.5 billion dollars has been sent out of the country for buying digital currencies”

In his interview, he added that traders in Iran don’t have an access to the international banking system which forces them to see alternate ways of trading cryptocurrencies. Just in few months, the countrymen transferred $30 billion abroad which is a loss to the economy. They are relying on unconventional ways like sending money through travelers and through exchange dealers.

Central Bank of Iran banned crypto transactions

The official gave these remarks after the Central Bank of Iran has banned the financial institutions to deal with cryptocurrencies. The bank put restrictions to eliminate the chances of terror financing and money laundering.

There are dozens of central banks taking harsh decisions against digital currency trading. Recently Indian and Pakistani Central banks have issued the same kind of restrictions to combat foul financial practices.

Please read: Indian Central Bank Bans crypto Transactions with all its financial institutions

Iranian Traders send $2.5 billion out of Iran to bypass central bank’s ban

Iran is launching its own cryptocurrency

Iran’s information minister has announced that they have developed a National Crypto Currency and it will soon be tested.  Iran feels the need for transparent and untraceable transactions after the recent bans from the US. The country needs a way out of these bans and opts for an alternate method for making financial transactions. Their cryptocurrency will help them survive in the competitive market.

It is ironic to ban cryptocurrency and launch your own digital coin

This is an irony that Iran is banning crypto-trading and launching its own digital coin at the same time. Iranian traders might foresee it as a conflict of interest since the Government’s institute is restricting traders to trade other coins and offering them its own. Earlier, Indian top financial institution has made a similar ironic move by restricting local banks to do transactions with crypto exchanges and announcing to launch their own coin.

Also Read this:  State Bank of Pakistan Bans crypto Transactions

Recognizing the worth of Cryptocurrencies

Government’s and regulatory bodies seem confused about the legitimacy and future of digital currencies. At one time they seem to abandon it and at the other time, they are finding alternate ways. The future of digital currencies seems to be overwhelming after the adoption of blockchain from hundreds of industries. We have also seen Saudi Arabia partnering with Ripple and several countries seeking to introduce regulations to facilitate crypto trading.

Pourebrahimi also said:  “The structure of the cryptocurrency should be suitable for economic activity and be acceptable at the international level simultaneously”

Read more:  Goldman Sachs Bank Decides to Start Crypto Trading

 

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Tanveer Ahmad

Tanveer Ahmad is an experienced writer with deep insight into a variety of niches. His prominence lies in the detailed attention he puts to unveil the hidden aspects of his subject. His analytical approach to bring to the surface the futuristic possibilities of anything he writes about, especially on cryptocurrencies and politics are commendable. He eagerly wants a space to write about anything that could help humans develop positiveness in their behavior and to fine-tune their thought process to become an ambassador of peace, harmony, and love.

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