Iran’s entrepreneurs could go to jail due to the new proposal

While the lack of clarity regarding the crypto industry is the usual state of things around the world, most governments are making moves to simplify the industry. Iran, however, just made a move that confused everyone and brought new questions, rather than providing answers.

Not only that, but the new move made the markets riskier than ever, which could reflect badly on the country’s crypto industry.

The new law targeting crypto industry

According to a local news outlet, Iran’s parliament recently published a new proposal. The proposal revolves around digital currencies, and it wants to include them under existing currency smuggling and foreign currency exchange laws and regulations.

As a result, the country’s entrepreneurs could end up being jailed by the local authorities. However, that is not all, as they also risk being sanctioned by the US.

If the new law comes to pass, it would mean that the country’s cryptocurrency exchanges have to receive a license to operate by the country’s central bank. Basically, crypto exchanges would have to follow the same laws as forex exchanges. While the new law was quick to demand this, it did not explain how the exchanges should apply for licenses, or how can they apply norms for fiat money to blockchain technology and digital currency.

The move was already criticized, with many claiming that the government is simply trying to find a way to penalize exchanges. Doing so would significantly reduce capital outflow, as Iran continues to develop its interest in crypto.

Fortunately, many of the exchanges that Iranian traders use are based outside of the country. Meanwhile, it remains unknown whether, or how the new law might apply on decentralized ecosystems,

Iran does use crypto to bypass sanctions, it seems

According to what is known, it appears that the Trump administration was correct when assuming that Iran is using crypto to circumvent sanctions. However, if the country’s exchanges do end up having to register with the central bank, it is unclear how they might continue bypassing restrictions.

Of course, there are also cases of Iranian exchanges being promoted outside of the country. Justin Sun, the CEO of TRON (TRX) promoted one such exchange quite recently.

https://twitter.com/justinsuntron/status/1261860948244959232

The company is officially based outside of Iran, but it does operate within it. And, while Sun and Tron Foundation did promote it, they also said that they do not directly work with it.