Iranian Central Bank has formally banned the use of crypto-currencies in financial transactions

April 24, 2018 10:47 amComments Off on Iranian Central Bank has formally banned the use of crypto-currencies in financial transactionsViews: 12

crypto-currenciesIranian Central Bank has formally banned the use of crypto-currencies in financial transactions, in attempt to prevent crimes such as money laundering and terrorism. The decision is part of Tehran’s efforts to control the foreign exchange market after the Iranian rial exchange rate dropped to the historic minimum earlier this month.

The ban covers all monetary and financial centers in the country, including banks, financial institutions and exchange bureaus.

Though crypto-currencies, such as a Bitcoin, were never officially recognized in Iran, they traded in parallel markets. Digital currencies are created and marketed independently by banks or governments. Transactions are usually anonymous, but virtual money can be converted into cash when deposited in accounts at prices set in online trading.

Since the beginning of the year, crypto-currencies have suffered much of the increasing regulatory pressure, while Facebook, Google and Twitter banned ICO ads.

The platforms trading with crypto-currencies often become targets for cyber-attacks. Since early 2018, hackers have stolen 700 million USD in digital money from exchanges in Japan and Italy. The thefts forced exchanges and regulators to take more measures to protect investors.

The most scandalous case has so far been the theft of 460 million USD from the Japanese Mt. Gox in 2014.

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