It looks like the cryptosphere in Iran may be experiencing some turbulence soon, as the regulators are about classifying cryptocurrency as one the channels of capital flight. The Iranian parliament had submitted a proposal earlier in the week to expand the scope of the existing “currency smuggling” and forex regulations to include cryptocurrencies. This announcement has unsettled local crypto market participants because of the implications that would follow if the government decides to adopt this approach.
One of the implications of this proposed amendment is possible criminalisation of privacy-focused cryptocurrency. As the government takes a rather too critical focus on cryptocurrencies more than other remittance channels, holders of privacy coins will face undue attention.
The law could also mean that crypto exchanges will need to acquire their licenses from the Central Bank of Iran, which is the apex monetary institution. Although it is not clear how the exchanges will adjust their blockchain operations in line with fiat operations, what is certain is that the government is determined to control capital outflows.
