Iran’s CBI the first draft of regulation for cryptocurrencies
After ten years of emerging the Bitcoin, it is the first time that the CBI officially has released its policy against cryptocurrencies
Iran’s CBI (the Central Bank of the Islamic Republic of Iran) has released the first draft of regulation for cryptocurrencies in Jan 28, 2019.
After ten years of emerging the Bitcoin and blockchain technology in 2009, it is the first time that the CBI officially has codified and released its policy against cryptocurrencies.
According to CoinIran quoted from the announcement of the public relation of the CBI in Jan 28, it says this draft is to regulate the activities and plans for those people who are active is this industry and also to get the opinions and advices of the experts. The full text of the draft can be downloaded from here (written in Persian).
In this draft the cryptocurrency is categorized in five types as bellow:
- Global Cryptocurrency
That is any cryptocurrency throughout the world like Bitcoin, Ethereum, XRP, etc. which is accessible by everyone.
- CBCC, the Central Bank (National) Crypto Currency
Which is issued by the central bank and is backed by the IRR (Rial).
- Regional Cryptocurrency which is issued for financial exchanges between Iran and some countries.
- The Cryptocurrency issued by an ICO
Regulation for the global cryptocurrency
Any usage of this crypto as a payment tool is forbidden inside the country but they can be exchanged. Also implementing global crypto wallets is allowed.
The mining of global cryptocurrencies is accepted as an industry in the country, therefore the CBI deprived itself to make a regulation on this section.
Regulation for ICO
The CBI is the only authority to issue the tokens backed by IRR(Rial). This type of token can be used as a payment tool and cannot be mined.
Other tokens backed by gold, precious metals or other currencies can be issued under the CBI licenses. They cannot be used as a payment tool and cannot be mined but can be exchanged. The tokens without backing are also as the same.
Regulation for CBCC (National Cryptocurrency)
The CBI is the only authority to issue the CBCC. This cryptocurrency can be used as a payment tool and cannot be mined. In addition it can be exchanged only in CBI and approved banks.
Regulation for Regional Cryptocurrency
The CBI is the only authority to issue the regional cryptocurrency. This cryptocurrency can be used as a payment tool and cannot be mined. In addition it can be exchanged only in CBI and approved banks and exchanges.
Regulation for exchanges
- There is no guarantee for the authenticity of cryptocurrencies and the CBI cannot manage the stability of the price.
- The investors must take all risks.
- All exchanges must acquire the CBI license for their activity.
- The owners of exchanges must take full responsibility for exchanges functionality.
- All exchanges must be compliant with AML and KYC.
- All exchange must deliver all data about their customers, trades, etc. to CBI.
- The maximum value for exchanging IRR(Rial) to cryptocurrency and vice versa must be in compliance with the currency general rules in the country.
Regulation for cryptocurrency wallets
- Holding the cryptocurrencies for individuals or legal persons must be in compliance with the currency general rules.
- The CBI has no responsibility for the tools and their security and does not advise any specific wallet to users.
- The wallet usage is only for exchanging and storing the cryptocurrencies and other applications such as buying commodities or services are forbidden.
Regulation for mining
As the mining of cryptocurrencies is accepted as an industry in the country, therefore the CBI deprived itself to make a regulation on this section.