Emre Yumlu 
Iran is preparing to impose new levels of control and oversight on crypto amid worsening economic conditions.
Iran Increases Pressure on Cryptocurrencies Amid Economic Struggles
Iran has ramped up its pressure on cryptocurrencies and online exchanges as the national currency, the rial, rapidly depreciates. Last month, the Central Bank of Iran (CBI) banned rial payments across all cryptocurrency exchanges. This move was aimed at preventing further destabilization of the country’s economy and halting the rial’s exchange for foreign currencies.
The CBI has officially taken charge of regulating the crypto market, but the measures have drawn criticism from both the public and market participants. Smaller exchanges were forced to accept certain conditions, including proving their reserves, and some were allowed to resume rial transactions on a limited basis. Additionally, plans are underway to impose a 4% daily price fluctuation cap on stablecoins such as Tether (USDT).
Amid economic crisis and high inflation, many Iranians are turning to cryptocurrencies as a means of preserving their savings, but the government is attempting to restrict this trend. Experts believe that such stringent regulations will drive the growth of underground markets and push people towards foreign exchanges. While officials encourage the use of cryptocurrencies for international trade, they are simultaneously enforcing strict controls on the domestic market.
Experts argue that the real purpose behind these regulations is not to protect the public’s safety but to increase government control. This approach is likely to deepen the trust gap between the government and the public, accelerating the shift towards alternative financial channels.
Some analysts suggest that the Iranian government is using these tough measures to address its budget deficit and protect its foreign currency reserves. However, these restrictions are likely to increase market uncertainty and prompt capital flight. As a result, the public’s move towards alternative investment options could further exacerbate the country’s economic instability.
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