A Review of the Center for Electronic Commerce Development’s Performance Over the Last Two Years
Amin Kolahdoozan, head of the Center for Electronic Commerce Development (TETA), resigned from his position in mid-Dey 1403. In a message posted on his Twitter account on his last working day, he spoke about key achievements and the challenges ahead for electronic commerce in Iran. Kolahdoozan also provided suggestions for improving the industry’s status in the country, emphasizing the importance of greater cooperation between the public and private sectors.
Table of Contents
On 17 Dey 1403, after two and a half years of responsibility at the Center for Electronic Commerce Development, Kolahdoozan officially announced his resignation. In his farewell message on Twitter, he discussed his efforts to advance the center’s objectives and enhance the country’s e-commerce ecosystem. He highlighted the key achievements of his tenure, addressed existing obstacles to the industry’s growth in Iran, and proposed strategies for future improvement.
Report on Kolahdoozan’s Resignation Letter
The resignation letter, structured in three sections, outlines his experiences, achievements, challenges, and executive recommendations for improving electronic commerce and government platforms. This report will review the details of his resignation and address all points raised in the document.
Section One: Summary of Key Findings
In this section of the resignation letter, Kolahdoozan details his major accomplishments during his tenure at the Center for Electronic Commerce Development. These achievements reflect significant progress in Iran’s e-commerce sector. The key highlights are as follows:
Electronic Commerce as a National Capacity
Kolahdoozan emphasized that e-commerce represents a vast potential that can create new opportunities for the country in the short term. He pointed out that Iran must effectively utilize these opportunities to become one of the region’s industry leaders within five years. He stated: “The quantitative and qualitative growth of this sector in recent years confirms this claim.” According to him, this sector has considerable potential for job creation and high productivity.
The Role of the Center in Facilitating and Engaging Stakeholders
From Kolahdoozan’s perspective, the Center for Electronic Commerce Development should act as a facilitator, allowing government entities and businesses to interact seamlessly. He believes that if the center serves as a bridge between these two groups, it will be able to streamline executive and regulatory processes while reducing operational challenges.
Proactive Planning for Market Activation and Regulation
In his resignation letter, Kolahdoozan highlighted the importance of proactive planning to activate and regulate emerging markets. He stressed that this approach is “the key to continued growth and the leap forward for this economy in the coming years.”
Structural Challenges in Administration and the Need for Agility
One of the major issues Kolahdoozan faced during his tenure was the bureaucratic and complex structure of ministries and government organizations. According to him, “Tech companies in this field are deeply intertwined with agility and rapid changes.” He pointed out that this rigid structure hinders the rapid advancement of the e-commerce sector. Therefore, introducing agility into these organizations is essential. He warned that if the government fails to implement agility in its institutions, it will soon fall behind global competitors.
Collaboration with the Private Sector for Better Regulation
Kolahdoozan stressed the need for closer cooperation with the private sector, advocating for an operator-based model where regulation takes precedence over direct government intervention. He stated that the government can only achieve its e-commerce development goals if it effectively utilizes the private sector’s capacities.
Special Support for Transparent and Law-Abiding Companies
Kolahdoozan argued that “the most effective method for establishing regulatory compliance and transparency in a market is to provide special support for transparent and law-abiding companies,” rather than solely punishing and restricting non-compliant businesses.
Utilizing New Technologies for Better Supervision and Policy Implementation
Kolahdoozan also highlighted the necessity of leveraging new technologies, such as artificial intelligence and regulatory technology (RegTech) and supervisory technology (SupTech) businesses, to enhance oversight and enforcement processes. He believes these technologies can significantly improve regulatory efficiency while reducing costs.
Section Two: Performance and Results
In this section of the report, Kolahdoozan outlined the tangible achievements and outcomes during his tenure as the head of the Center for Electronic Commerce Development. These results have directly contributed to the growth of e-commerce in the country. The key points are as follows:
Economic Growth of E-Commerce in Iran
One of the most significant accomplishments has been the remarkable economic growth in this sector. According to Kolahdoozan’s report, the value of Iran’s e-commerce market increased from 1,200 trillion tomans at the end of 1400 to 3,200 trillion tomans at the end of 1402, equivalent to approximately 57 billion dollars. This growth highlights the positive impact of policy changes and advancements in technological infrastructure.
Additionally, the number of businesses holding the Electronic Trust Symbol (E-namad), which indicates the legitimacy and credibility of e-commerce websites, grew from 120,000 in 1400 to 270,000 by the end of 1402. This growth reflects increased public trust in online stores and e-commerce services in the country.
Increase in Electronic Signature Certificates and Transaction Transparency
The number of electronic signature certificates—an essential tool for ensuring security and transparency in e-commerce—rose from 1.3 million in 1400 to 4.3 million in 1402. Kolahdoozan also projected that this number would reach 6 million by the end of the current year. This significant increase in electronic signature certificates has greatly contributed to improving data security and legal processes, particularly in government and commercial sectors.
Growth of Government Transactions on the SETAD System
The SETAD system, which serves as a gateway for businesses to access government contracts and transactions, experienced an unprecedented increase in transaction value. According to Kolahdoozan:
“The value of government transactions on the SETAD system rose from 302 trillion tomans in 1400 to over 1,100 trillion tomans by the end of 1402.” This surge in government transaction value indicates successful efforts in enhancing transparency and providing easier access to financial data.
E-Commerce Sandbox: A Successful Model for Innovation Adoption
Kolahdoozan also referred to the E-Commerce Sandbox initiative, describing it as the “most advanced sandbox in terms of company acceptance.” This sandbox, which admitted five companies and facilitated extensive activities, played a crucial role in supporting innovation and advancing e-commerce.
Financial Transparency and Recovery of Government Funds
One of the most critical actions taken during this period was the recovery of government funds that had been misallocated due to contractor misconduct within the system. In addition, the four-year outstanding debt of intermediary centers was settled, and the funds were transferred back to the government treasury. These efforts highlight the center’s commitment to financial transparency and responsible fiscal management.
Strategic Plan Redesign and AI Integration
Kolahdoozan stated that the strategic plan for e-commerce, which had remained stagnant for four years, was revised with input from industry experts. Additionally, a draft action plan for integrating artificial intelligence into commerce and trade was prepared as the first operational sectoral policy document.
Regulation of the Online Gold Market
One of Kolahdoozan’s most notable achievements was the regulation of the online gold market, which had been plagued by instability at the beginning of the year. Thanks to these regulatory measures, the market—previously affected by volatility—is now under full oversight. Kolahdoozan reported that:
“With nearly 4 million users and a net sale of close to 1 ton of gold in 1403, the sector was regulated within two months.” Furthermore, all major online gold-selling companies (around 100 active firms) are now required to deposit their gold reserves with a bank, ensuring transparency in sales and cybersecurity compliance through regular monitoring. These reforms have increased transaction security and mitigated issues arising from market instability.
Section Three: Challenges and Future Steps
In this section of his resignation letter, Kolahdoozan addressed the major challenges he faced during his tenure and provided suggestions for improving the situation. These challenges primarily relate to weaknesses in executive structures, corruption, and issues regarding the lack of transparency in governmental and private sector processes. The key points of this section are as follows:
The 2,000 Billion Toman Corruption in the SETAD System
One of the most critical issues highlighted in the resignation letter was the blatant violation that occurred in 1393 (2014) in signing an agreement with Bank Mellat for the SETAD system in Iran. Due to the failure to adhere to legal procurement procedures and public accounting laws, this led to a financial corruption case amounting to 2,000 billion tomans. This system is considered one of the most sensitive governmental platforms. According to Kolahdoozan, this issue had remained unresolved over the years due to the vast scope of the violation and the sensitivity of the project, turning into a persistent problem. Oversight and security institutions in the country, including the Article 90 Commission of the Islamic Consultative Assembly, the General Inspection Organization, the Supreme Audit Court, the Legal Affairs Office of the President in two previous administrations, the Vice Presidency’s Office, and the National Treasury, had repeatedly issued warnings regarding this violation and initiated related cases. Kolahdoozan emphasized the need for legal and judicial follow-up to resolve this issue and called for serious measures to prevent similar cases of corruption in the future.
According to Kolahdoozan, in 1402 (2023), two key actions were taken to stop this faulty process, which require serious follow-up to yield results:
(A) Pursuing a judicial complaint to determine the fate of the contract, which is still ongoing;
(B) Holding two rounds of formal and legal public tenders, which ultimately led to the selection of a new contractor for the system.
The Need for Reforming E-namad Procedures
Kolahdoozan also discussed the need for reforming procedures related to the issuance of E-namad (Electronic Trust Symbol) and emphasized that shifting the current approach from a linear model to a risk-based management approach could improve the situation. In particular, establishing intelligent systems for business evaluations could make the E-namad issuance process faster and more transparent.
He stated: “Although changing past procedures will undoubtedly face opposition, these changes are inevitable.” The most important reforms in this regard include:
(A) Shifting from the current linear approach in issuing E-namad to a risk-based management approach;
(B) Changing the operational model from a platform-based system to an operator-based model;
(C) Transitioning from a centralized and human-supervised model to a distributed and AI-based oversight model.
The Necessity of Amending the E-Commerce Law
Kolahdoozan’s resignation letter emphasizes the importance of the center’s efforts to reform the e-commerce law with a modern perspective. This law holds significant potential to address many of the existing challenges in this field. According to him, these efforts should be based on developing the e-commerce ecosystem, fostering constructive partnerships, utilizing modern regulatory capacities, and leveraging advanced regulatory technologies. Additionally, strengthening the infrastructure and subsystems of the country’s e-commerce should be considered a fundamental priority for the transformation and development of this sector.
Expanding the Regulatory Sandbox and Managing Regulatory Challenges
Kolahdoozan also highlighted the importance of expanding the activities of the regulatory sandbox as a vital regulatory tool. However, he acknowledged that this expansion would inevitably face opposition from traditional operators. To address these challenges, he recommended careful planning and maximum stakeholder participation. Moreover, he warned that inaction or deviation in the regulatory approach could have serious negative consequences on the center’s performance in emerging and innovative domains. He asserted that proactive measures by the center, while necessary and unavoidable, would face serious challenges requiring precise strategic planning.
The Temptation to Launch New Government Systems
Kolahdoozan identifies one of the key challenges of public administration as the launch and management of new systems, a temptation that public managers often face. According to him, this sense of controllability may seem logical and satisfying in the short term, but as past experiences have shown, it can reduce the dynamism of the ecosystem in the long term and lead to financial issues related to budgets and interactions with contractors. Therefore, resisting this temptation and focusing on rule-making rather than acting as an executor or owner will be a serious challenge moving forward.
At the end of his resignation letter, Kolahdoozan emphasized the necessity of legal, judicial, and administrative follow-ups to restore the SETAD system to a lawful path and ensure the government’s best interests. However, he revealed that over the past months, due to his persistent efforts to ensure the proper functioning of the SETAD system and returning misallocated funds to the treasury, he had repeatedly been warned about the possibility of changes in the center’s management.
Following Kolahdoozan’s resignation, Twitter users reacted to the news. Some notable figures who commented include:
