Iran Focuses On Crypto To Nullify The Impact of Global Sanctions
In a strategic shift in its stance on digital currencies, Iran has decided to regulate the cryptocurrency industry rather than restrict it.
The decision was announced at a national event in Tehran by Economic Affairs and Finance Minister Abdolnaser Hemmati, who stated that their goal is to minimize the risks associated with cryptocurrencies while reaping all its benefits.
The country’s central bank will be responsible for managing all digital assets. From developing regulatory frameworks and helping financial institutions adopt digital assets to monitoring transactions and ensuring compliance. until central bank.
It has issued a set of guidelines on tax compliance and anti-money laundering measures.
Currently, Iranian investors hold $30B to $50B worth of crypto assets, accounting for approximately one-third of the company’s total gold market.
critical time for decision-making
The timing of this decision couldn’t be better. Hemmati believes this will bring several benefits:
- Attract domestic and foreign investors
- Create more job opportunities and promote youth employment
- Integrate Iran into the global economy and simplify its access to wider financial services that only allow crypto trading
But there is one overriding reason – freedom from sanctions. As Donald Trump prepares for a second term in the White House, Iran must be ready.
Trump withdrew from the Iran nuclear deal during his first term as president. One of the reasons he cited was that the deal was one-sided and mainly benefited Iran without bringing much peace commitment to other countries.
notes: this Iran Nuclear DealAlso known as the Joint Comprehensive Plan of Action (JCPOA), it is a landmark agreement between Iran and the world’s superpowers, including the United States, under which Iran committed to dismantling its nuclear program and allowing other countries to closely inspect it nuclear program. facilities in exchange for relief from sanctions worth billions of dollars.
Will the United States impose sanctions?
Iran’s economy took a huge hit as sanctions were reinstated, and the country has been struggling ever since. Therefore, now that Trump is back, there are rumors that he may restart the so-called “maximum pressure policy” on Iran and increase sanctions.
The chances of reinstating this policy appear low. JPMorgan analyst Arun Jayaram said more sanctions on Iran could severely impact global oil supplies, removing about 1 million barrels of oil per day from the supply chain. But you never know with Trump, so Iran made a smart decision fasten your seat belt.
Iran is making other compromises as well. On Tuesday, for example, the United Nations announced that Iran had decided to stop producing enriched uranium that could be used to make bombs.
In addition, Iran’s new President Masoud Pezeshkian has previously stated that establishing friendly relations with the West, lifting sanctions, and restoring “normality” to Iranians are his primary goals during this term.
