Iran’s Central Bank banned the country’s banks from dealing in cryptocurrencies

The Central Bank of Iran has issued a notice to announce that all the banks, credit agencies, and other financial institutions in the country are handling virtual currency related transactions.

At the same time, the agency also announced that it is forbidden for financial institutions to promote virtual currency in any way. For customers who may participate in virtual currency transactions, they need to be intercepted.

Most other countries that prohibit the use of virtual currency transactions are worried about the illegal fund-raising of such transactions and the use of virtual currency tokens to issue financial frauds.

The main purpose of the ban on virtual currency transactions is to try to block money-laundering through virtual currencies after Iran’s anti-money laundering agencies have already announced similar bans.

Earlier, the Indian and Israeli regulators announced the same ban that prohibits financial institutions under their supervision from providing virtual currency transactions.

The reason why the National Bank of Pakistan announced the ban is not new: There are criminal issues such as money laundering, fraud in fundraising, tax evasion, and tax evasion.

The above problems are also an important issue that has always plagued the development of virtual currencies. The reasons given by most countries that prohibit virtual currency transactions are basically the same.

India is relatively soft with respect to virtual currency transactions. The country’s regulators have transitioned banks and exchanges to disconnect the payment system.

But even if the tender purpose is the same, the ultimate goal is to completely prohibit banks and financial institutions operating in India from providing virtual currency transactions to customers.

Source: Reuters