Page 28 - IRANRptSep18

traders and other fortunate parties—causing a massive depreciation of the rial.
According to a CBI press release, some 419 bureaux are now licensed to trade foreign currencies at the free market rates. On August 15, a dollar was selling for IRR107,000, while the euro and pound sterling were trading at IRR124,000 and IRR134,000, respectively, according to banned but relatively reliable website Bonbast.com.
Since the reopening of the free market, the run on the rial, which accelerated in the second half of July, seems to have dwindled.
The CBI, under the new governor, Abdolnasser Hemmati, began its overhaul of Seif’s previous policy on August 5.
According to the new rules, the free market bureaux can purchase any amount of foreign currency and act as money transfer stations. They can also once more trade gold bullion and sovereigns.
7.1 Cryptocurrency
US confiscating Iranian cryptocurrency wallets around the world
The US government has confiscated more than 500 bitcoins belonging to Iranian-held “wallets”, according to a report by Iranian tech news website Techrasa published on July 16. The targeting of cryptocurrencies by US authorities comes after Iran announced earlier this year it was seriously considering using alternative currencies to circumvent impending US sanctions.
Unofficially, Iranians have been buying crypto in bulk for the past 12 months, to bypass trade sanctions and evade the severe devaluation of the Iranian rial (IRR) amid the intensifying US assault on Iran's economy.
One Iranian trader who has been buying cryptocurrencies for several years told bne IntelliNews : "I have been in a constant tug-o-war with my online trading app [which he did not name] over them shutting me down and holding my coins for months.
"I've lost thousands because of their over-compliance regarding US rules and regulations even before Donald Trump pulled out of the nuclear pact; it's just infuriating, again we're being hit from every side."
According to Sepehr Mohammadi, head of the Iranian Blockchain Community (IBC), over 500 bitcoins owned by Iranian citizens have been seized by the US federal government. Reports from the US outline claims that the bitcoins were seized due to sanctions violations.
Mohammadi said IBC is negotiating with several lawyers with expertise in anti-money laundering laws to follow up on the seizing of crypto holdings, but to date none had taken on the assignment due to complexities in the use of cryptocurrencies in Iran. He added that Iran’s cyberpolice had not taken any action since trading in foreign-based cryptocurrencies is currently forbidden.
In April, following a rush in Iranian interest in cryptocurrencies like bitcoin, the Central Bank of Iran (CBI) banned further trading, amid fears people were siphoning millions of euros out of the country via side-door crypto routes. Following the official ban, other Iranian officials openly discussed possibilities of using cryptocurrencies to replace traditional international banking systems like SWIFT and bypass sanctions.
28 IRAN Country Report September 2018 www.intellinews.com