Iran Imposes 10am-8pm Curfew on Crypto Exchanges After $100M Hack

Iran has implemented a strict operating curfew on local cryptocurrency exchanges, restricting their hours to between 10 am and 8 pm local time. This decision comes in the wake of a significant $100 million hack at Nobitex, one of the largest exploits in the region. The curfew is aimed at tightening transaction oversight and curbing capital flight, according to Chainalysis.

The breach at Nobitex has exposed vulnerabilities in Iran’s developing crypto infrastructure. By confining exchange operations to specific daytime hours, authorities can more effectively monitor transaction flows, identify unusual patterns, and intervene promptly. This move is seen as a measure to prevent illicit transfers abroad, thereby maintaining economic stability amidst tight sanctions.

For Iranian traders and exchanges, the curfew brings about several changes. The reduced flexibility in trading hours may lower liquidity, as late-night trading is no longer an option. Additionally, the heightened scrutiny means less anonymity and increased risk for grey-market transfers. Price volatility could also increase during the compressed trading hours. Smaller exchanges may face challenges due to the reduced revenue windows, while traders might explore peer-to-peer platforms or offshore services. However, the curfew also indicates a maturing regulatory approach, recognizing the growing role and risk of cryptocurrency in Iran’s financial ecosystem.