Page 35 - IRANRptSep20

7.1​ Cryptocurrency
Iran’s central bank issues “Version 0.0” draft on regulating use of cryptocurrencies
An initial 13-page draft on regulating the use of cryptocurrencies in Iran has been released by the country’s central bank, IBENA has reported. The draft reportedly suggests heavy oversight should be exercised by the Central Bank of Iran (CBI) while the market develops. “Version 0.0”, as the drafted rules have been dubbed, is meant to bring clarity to the utilisation of the global digital payment method and “allow traders to plan for their future”. After initially banning the use of cryptocurrencies such as Bitcoin, the CBI now recognises the payment method. It is also laying the groundwork for a future Iranian digital currency that it intends to launch.
The drafted regulatory guide also sets rules for initial coin offerings (ICOs), new digital currency launches, the establishment of cryptocurrency exchange bureaus and coin mining.
Last year somewhat kneejerk anti-cryptocurrency bylaws were brought forward following the explosion of virtual currency trading in Iran to facilitate capital flight amid the country’s economic difficulties in the face of the reimposed US sanctions. Once finalised, the new rules are expected to replace those regulations.
The new rules also stipulate that Iranians are barred from holding large quantities of foreign cryptocurrencies while also “using cryptocurrencies as a method of payment inside the county”.
However, such a ruling would be impossible to enforce. There are millions of euros worth of cryptocurrencies already being exchanged Iranians on a daily basis through local digital bureaux de change.
Following the announcement of the draft, one Iranian trader, Amin Hosseini, told ​bne IntelliNews​ that “the government can announce whatever rules they like, we are going to continue to trade with our chosen currencies, as we do with hard currencies on the street”.
7.2​ Forex platform
Iran’s central bank launching ‘Diba’ platform to supervise banks’ operations in forex
The Central Bank of Iran (CBI) has launched a new financial platform dubbed “Diba” to supervise banking operations in foreign exchange nationwide, IBENA has reported the CEO of the state-owned Informatics Services Corporation as saying.
According to the information disclosed, Diba will play a role in the regulation of the foreign exchange market, similarly to “Nima” and​ “​Shaparak​”,​ two other financial mechanisms launched by the national lender in recent years against a backdrop of market volatility and disruption caused by US sanctions.
“The Diba [system] is a regulatory platform like Shaparak, developed to regulate the function of payment service provider (PSP) companies,” Aboutaleb Najafi said, adding: “Banks have begun to offer open banking services, which allows [software] developers to create applications and offer innovative financial instruments [and mechanisms].”
35​ IRAN Country Report September 2020 www.intellinews.com