Thu Feb 27 05:30:16 UTC 2025: ## Iran Tightens Grip on Cryptocurrency Amid Economic Crisis

**Tehran, Iran** – Iran’s struggling economy is prompting the government to further restrict cryptocurrency transactions, sparking criticism from industry insiders. The Central Bank of Iran (CBI) recently halted rial payments on all cryptocurrency exchanges, impacting over 10 million users and leaving them unable to trade Iranian rials for Bitcoin and other digital currencies. This drastic measure, though previously attempted on a smaller scale, aims to curb the rial’s rapid devaluation by limiting its use in foreign currency exchanges.

The move comes as the rial plummets to record lows, exceeding 940,000 per US dollar – a dramatic fall from less than 40,000 in early 2018. Years of high inflation (over 40 percent) and international sanctions have fueled the crisis. While the CBI claims it now has “full authority to monitor and manage the cryptocurrency market,” it has offered little public explanation for its actions, refusing to comment to Al Jazeera.

The government’s stated goal is to control the cryptocurrency market and encourage crypto-based export trade, but the methods remain unclear. The CBI is reportedly negotiating with exchanges, imposing conditions such as access to real-time user data and the ability to block accounts. Daily trading limits on cryptocurrency prices are also being considered. The stablecoin Tether (USDT), popular among Iranians as a hedge against inflation, is under particular scrutiny.

The restrictions have forced some exchanges to seek alternative banking solutions for rial payments while others face closure. Although incoming and outgoing cryptocurrency transactions remain unaffected, the central bank’s actions are generating significant backlash. Economy Minister Abdolnaser Hemmati is facing impeachment efforts from hardline lawmakers, while industry figures like Ubitex CEO Eisa Keshavarz accuse the CBI of unethical practices and warn of a shift towards underground cryptocurrency activities.

Experts further predict increased government intervention, including potential taxes on crypto transactions, and point to a recent regulatory roadmap from the Supreme Council of Cyberspace which emphasizes facilitating international crypto trade – a move potentially exposing users to sanctions risks. Critics argue that the government’s focus is on protecting itself, not citizens, by prioritizing state control over individual financial freedom. The lack of transparency and the government’s conflicting policies, ranging from blocking foreign social media to restricting local crypto exchanges, are worsening the economic situation and straining public trust.

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