Iran's Central Bank in tandem with the major market regulator stated that local business might not handle cryptocurrencies. The authorities are concerned that the digital coins can be used for terrorist funding and money laundering activities. As a result, the Central Bank of Iran released the note to ban this technology for the financial sector, as the news reports read.
"Virtual currencies have the option to be used for money laundering, supporting terrorism and exchange of sums being wrongdoers," the statement said.
Thus, local banks, financial institutions, and exchange platforms should keep out of any activities connected with cryptocurrencies. Moreover, promotion of virtual currencies is also prohibited by the regulators.
However, these intentions look quite unclear, and it is hard to say how seriously the central bank plan to restrict crypto operations in the home market considering the previous statements among other factors. Specifically, Information and Communications Technology Minister commented in February that CBI was developing a cryptocurrency to be managed by the state. Back last November, Iran's cyberspace authority said that the country "welcomes" bitcoin with corresponding regulation norms.