After China And South Korea, Now a Gulf Country Bans Crypto-Trading

After the Asian countries China and South Korea banned their respective central banks from trading and promoting cryptocurrencies, now a Gulf country does the same. As on Sunday, April 22nd, Iran announced a similar ban on its central bank.

According to the report published by Reuters, a statement was issued on Sunday, April 22nd, by the Iranian State News Agency (IRNA) claiming that credit institutions, banks, and currency exchanges “ought to avoid dealing with any cryptocurrencies and also make no attempts at promoting them.”

The Iranian government has taken this decision, in an attempt to support the recent modifications designed to stabilize Iran’s currency, the rial, which has dropped to an all-time low, due to growing concerns that sanctions would be restored by the US which would cause a massive dent to the country’s economy. Earlier in the month, money transfers outside banks and unified exchange rates had already been banned by Iran, which has now been followed by a ban on trading with cryptocurrencies as well.

A deadline of 12 May has been fixed, during which the President of USA, Donald Trump has to make a decision whether or not to re-impose US economic sanctions on Tehran.

As per reports, by imposing a ban on cryptocurrency trading, Iran is most probably trying to block any attempts made by concerned traders to invest in cryptocurrencies instead of the rial. This tactic bears a lot of resemblance to the one implemented by China, however, the volatility of Iran’s currency is even more severe. The most populated country in the world cited “financial risks” as the reasons for banning virtual currency trading or ICOs.

Earlier this month, an Islamic scholar published a paper that declared bitcoin permissible under Sharia Law.

The study by Muhammad Abu-Bakar of Blossom Finance in Indonesia states,  “Given the fact that bitcoin is treated as valuable by market price on global exchanges and also a wide range of traders accept it as a mode of payment, Bitcoin is hence permissible.”

Abu-Bakar further added, “Besides, various private individuals accept bitcoin as a medium of exchange in their private transactions.”

The publication of Abu-Bakar’s report matched with a sensational $1,000 spike in the value for bitcoin. On the other one hand,  many experts claimed a conceivable association between the two events, while others claim that the spike may have been caused by a huge institutional investor.


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