Iran's Crypto Crackdown: Central Bank Seizes Control Amid Economic Crisis

Iran's economic crisis has led to a tightening of control over cryptocurrencies, with the government implementing new restrictions and regulations. The Central Bank of Iran (CBI) has taken full control of the crypto market, aiming to stabilize the economy and prevent further currency decline.

The CBI recently stopped rial-based transactions in all cryptocurrency exchanges, affecting over 10 million users. This move was aimed at slowing down the rial's depreciation, as authorities fear people are converting their money into foreign assets to escape economic instability. With inflation above 40% for years and international sanctions cutting Iran off from the global financial system, many Iranians have turned to crypto as an alternative.

In a recent meeting, Iranian President Masoud Pezeshkian noted that the CBI is now the sole authority overseeing the country's crypto market. The CBI is also injecting foreign currency into the market and cracking down on illegal trading. These steps show a strong push to control economic instability.

Following the ban on rial payments, the CBI imposed new conditions on crypto exchanges. Some smaller platforms were forced to comply with demands like proving their reserves and granting real-time access to user data. The central bank is also considering a major change for Tether (USDT), the popular dollar-backed stablecoin. It plans to introduce a 4% cap on daily price fluctuations. If USDT's price rises beyond this limit, Iranian traders would be temporarily blocked from buying it.

The Iranian rial continues to weaken, recently hitting a record low of 940,000 per US dollar. Authorities are taking strict measures to stabilize the currency, including cracking down on illegal currency trading in Tehran's streets. While crypto remains a lifeline for many Iranians, the latest regulations could make it harder for them to access digital assets freely.