Iran's crypto holdings reach $50B amid sanctions
Iran's cryptocurrency holdings, estimated to be between $30 billion and $50 billion, now make up about a third of the national gold market, according to economist Mohammad Sadegh Alhosseini.
Alhosseini reported that daily cryptocurrency trading in Iran reaches approximately $143 million, or 100 trillion rials.
This substantial amount highlights the growing role of digital currencies in the Iranian economy, especially as they serve as a tool for bypassing U.S. sanctions on international banking.
In response to the increasing use of cryptocurrencies, the Central Bank of Iran (CBI) and the finance ministry have been working together to improve market transparency.
The aim is to ensure that crypto transactions comply with Iran's anti-money laundering regulations and tax laws.
Recently, the CBI released a policy document outlining steps to align cryptocurrency trades with these legal requirements.
However, Alhosseini cautioned that more stringent regulations could expose businesses engaged in sanction evasion to further U.S. penalties, thereby placing the responsibility on the CBI.
He suggested that private sector involvement could help better organise the crypto market, potentially reducing the risks associated with direct government oversight.
As the crypto market continues to grow in Iran, the government’s challenge will be balancing the need for regulation with the desire to maintain its ability to circumvent economic sanctions.
