Cryptoexchanges Binance and Bittrex have suspended Iranian services in the light of the latest round of stringent economic sanctions issued by the US against the Islamic Republic on Tuesday.
Iranian blockchain community is passing through a challenging time, currently. According to the head of the blockchain community in Iran, Sepehr Mohammadi, many of the cryptoexchanges which until now allowed Iran-based transactions have stopped such services. While there is no official notice or communication about the non-availability of the exchange services, none of the assets belonging to Iranians is blocked.
Hence, users located in Iran will no longer be able to use these exchanges to trade cryptocurrencies across borders. They will now have to operate in the limited domestic market and fork out a premium payment for bitcoin much higher than the “global average price.”
The first round of sanctions in July
According to Mohammadi, the suspension of cryptocurrency services by these exchanges, as an extension of the economic policies of the US is not new to them. When sanctions were deployed in July, accusations had been leveled against the Trump administration for impacting Iranian digital currency growth, besides seizing over $6 million BTC owned by Iranians.
The members of the community were unable to react to the arbitrary size of BTC at the local level because Iran does not recognize cryptocurrencies. The country’s policymakers consider cryptocurrencies to be an indirect means to money laundering as well as financing terrorist activities.
Iran revises cryptocurrency policy
The latest sanctions shall be leveraged by the Iranian government to deploy cryptocurrencies to overcome the restrictions and limitations of petrodollars. There are indications that the third largest oil-producing nations are in the midst of developing a state cryptocurrency to overcome international sanctions.
According to Iran’s Civil Defense Organization’s head Jalai, “Cryptocurrencies can help bypass certain sanctions through untraceable banking operations,”
The officer also reiterated the need for a state-wide cryptocurrency which will run on the blockchain ledger, similar to bitcoin. However, there will be one limitation that it will not be possible for citizens to mine the coin and the infrastructure will remain private.