The CEO of Iranian cryptocurrency exchange Bitestan, Hamed Mirzai, said that about 12 million Iranian citizens trade on local cryptocurrency exchanges.
Despite the lack of clear laws governing the cryptocurrency industry in Iran, locals transact millions of dollars in digital assets on a daily basis. Iranian authorities are concerned that capital is rapidly flowing from the country’s traditional stock markets to the cryptocurrency market.
Hamed Mirzaei, CEO of Iran’s Bitestan exchange, commented on the authorities’ statement. He noted that investments in cryptocurrencies are really gaining popularity among the country’s residents – more than 88% of transactions are made through local cryptocurrency exchanges.
“We estimate that 7 to 12 million Iranians own cryptocurrencies. Daily transactions with digital assets range from 30 to 50 trillion riyals (about $ 181 million), while cryptocurrency trading is unregulated. ”
This amount, Mirzai explained, exceeds the total amount of all capital market transactions in Iran. Iran’s position in the cryptocurrency market is highly controversial. On the one hand, it is a tool for bypassing US sanctions, but on the other hand, the uncontrolled use of cryptocurrencies can harm the economy of the state.
In June, Iranian President Hasan Rouhani said he intends to legalize crypto assets and called for the development of regulations to regulate them.
Recall that in May, Rouhani signed a ban on mining companies operating until September 22 due to overloading of electrical networks. However, not all miners obeyed the ban – more than 5,000 illegal mining farms were closed in Iran.