Amid a plunging national currency and an economy in crisis, Iranian authorities have intensified their crackdown on cryptocurrencies and online exchanges.
Last month, the Central Bank of Iran (CBI) took a dramatic step by halting rial payments across all cryptocurrency exchanges.
This move has left over 10 million crypto users unable to trade rials for Bitcoin or other global digital currencies.
The government’s primary objective appears to be curbing the further devaluation of the rial, preventing it from being exchanged for foreign currencies as it loses value.
This latest move follows a series of previous attempts to control the growing influence of cryptocurrencies in the country, but this time it is on a much larger and more sustained scale, signaling a significant shift in governance strategy.
The crypto market in Iran has been booming, especially among younger generations seeking opportunities in a global digital economy, as the country faces harsh Western sanctions and isolation from the global financial system. With many turning to crypto as a potential lifeline, the market’s growth has been robust, and there are optimistic projections for a bullish 2025.
However, the Iranian government’s latest measures suggest that the authorities are intent on maintaining strict oversight over the crypto community, adding another layer of complexity to the nation’s ongoing struggle with inflation, which has surpassed 40 percent for years. As the economy continues to suffer under the weight of sanctions, the push to control digital currency flows seems likely to persist.
