Iran has banned the country’s crypto self-regulating body, IBA (Iranian Blockchain Association). Some of the reasons it has cited for the ban include a breach of the law and some of the regulations that the association had set for itself.
According to an Iran news agency, the government had ordered the IBA to share its finances. The agency has reported that the government intended to use the financial reports to figure out the IBA’s relationships with crypto exchanges.
The move by the government comes just weeks after the country’s president Hassan Rouhani said that there was a need for crypto regulations in the .country. While speaking at a cabinet meeting, the president said that regulations were necessary for the best of the country’s strategic interests. The statement was followed by a ban on Bitcoin mining that is expected to last until September.
The move targeting the IBA has not been welcomed by the association. According to the IBA head Sepehr Mohammed, the association was not informed and only learned of the ban through the news. He added that the association was targeted for warnings it gave about certain crypto businesses in the country that it deemed risky to investors.
The uptake of cryptocurrencies and crypto-related products has been on the rise in Iran. Research shows that a total of 12 million Iranians hold crypto. This is quite significant in a country of 83 million people. A study on the country’s crypto usage also revealed that Bitcoin trading within Tehran was worth over $170 million a day.