In a strategic shift regarding its stance on digital currency, Iran has decided to regulate the crypto industry rather than restrict it.
The decision was announced by the Minister of Economy and Finance, Abdolnaser Hemmati, at a national event in Tehran, where he said that his goal is to minimize the risks associated with cryptocurrencies while taking advantage of all their benefits.
The country’s Central Bank will be in charge of managing all digital assets. From establishing the regulatory framework and helping financial institutions adopt digital assets to monitoring transactions and ensuring compliance, everything is to the central bank.
It has already published a set of guidelines on tax compliance and anti-money laundering measures.
Currently, Iranian investors hold between $30 billion and $50 billion in crypto assets, about a third of the company’s total gold market.
The crucial moment of decision
The timing of this decision couldn’t have been better. Hemmati believes this will have several benefits:
- Attract national and foreign investors
- Create more job opportunities and boost employment among young people.
- Integrate Iran with the global economy and simplify its access to a much wider range of financial services (those that only allow crypto transactions)
But there is one important reason that trumps all others: protection against sanctions. As Donald Trump prepares for his second term in the White House, Iran must prepare.
The first time Trump was president, he withdrew from the Iran nuclear deal. One of the reasons he cited was that the agreement was unilateral, benefited mainly Iran and did not provide much of the peace it promised to other countries.
Note: He Iran nuclear dealAlso known as the Joint Comprehensive Plan of Action (JCPOA), it is a landmark agreement between Iran and the world’s superpowers (including the United States) under which Iran promised to dismantle its nuclear program and allow other countries to closely inspect its nuclear facilities. . facilities in exchange for billions of dollars worth of sanctions relief.
Will the United States impose sanctions?
With the return of sanctions, Iran’s economy suffered a severe blow and the country has been struggling ever since. Therefore, now that Trump is back, there are rumors that he could revive his so-called ‘maximum pressure policy’ against Iran with more sanctions.
The chances of a revival of this policy seem low. JPMorgan analyst Arun Jayaram says imposing further sanctions on Iran could severely impact global oil supply, removing approximately 1 million barrels of oil per day from the supply chain. But with Trump you never know, so Iran has wisely decided to buckle up.
Iran is also making other commitments. For example, on Tuesday the UN declared that Iran had decided to stop producing enriched uranium that it could use to make bombs.
Furthermore, new Iranian President Masoud Pezeshkian had previously said that establishing cordial relations with the West, obtaining sanctions relief and restoring “normality” to Iranians is his main goal for this term.
