Iran’s cryptocurrency strategy– The Financial Crimes Enforcement Network called FinCEN is a bureau of the United States Department of the Treasury. It for collecting and analyzing information about financial transactions. It has recently issued a warning about Iran’s “illicit and malign” misconduct and exploitation. Which is of various financial markets, by proclaiming that Iran has been misusing its financial market to escape U.S. based economic sanctions. And to finance terrorist organizations as well as other illegal activities.
Front And Shell Companies
Iran’s cryptocurrency strategy-FinCEN attests that Iran employs “front and shell companies to exploit financial system around the world to generate revenues” in favour of “terrorist groups, ballistic missile development, human rights abuses, support to the Syrian regime, and other destabilizing actions targeted by U.S. sanctions.”
The bureau claimed in a report that Iran has been accepting cryptocurrency to evade economic sanctions issued against it. Albeit, FinCEN did confirm that the utilization of cryptocurrency by Iran was back in 2013. Therefore not a recent occurrence.
Iran’s use of cryptocurrency “includes at least $3.8 million worth of Bitcoin-denominated transactions per year”. Although that is “comparatively small” compared to other countries, according to FinCEN, but the agencstill believeded it is sufficient enough to exploit due to the “potential avenues” cryptocurrency has for illegal activities such as money-laundering and contraband transactions.
Iran’s exclusive Digital currency
Iran, on the other hand, seems to remain committed in its use of cryptocurrency to evade economic sanctions issued against it by U.S. President Donald Trump’s administration. This defiance was insinuated by Hassan Rouhani (The Iranian President). When he instructed his country’s National Cyberspace Centre (NCC) to draft a plan for the country’s exclusive cryptocurrency. Which is to be backed by the rial (Iran’s Fiat currency):
“This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions.”
By using a blockchain-based currency on Hyperledger Fabric technology, Iran is planning to issue its exclusive cryptocurrency in order to tackle economic sanctions easily. The Central Bank of Iran has removed its ban on institutions from selling and exchanging or even promoting cryptocurrencies. Which was issued earlier in this year:
“currency would facilitate the transfer of money (to and from) anywhere in the world,” and assist Iran “at the time of sanctions.”
Deputy for management and investment,at the directorate for scientific and technological affairs
“We are trying to prepare the grounds to use a domestic digital currency in the country,”
Daliri to ISNA.