Criticism from Cryptocurrency Sector Activists on Delays in Legislation
Blockchain activists at a brainstorming session on the legislation of blockchain and cryptocurrency in the country criticized the Central Bank’s decisions regarding the general regulation of crypto assets and called for the involvement of the Supreme Council of Cyberspace in this area. According to them, regulating cryptocurrency conflicts with the responsibilities of the Central Bank, and this responsibility should be entrusted to a higher authority. The separation of the regulator from the executor in the blockchain and crypto asset sector was also endorsed by the President of the National Cyberspace Center.
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The brainstorming session on blockchain and cryptocurrency legislation was held on September 18 with the presence of Seyed Mohammadamin Aghamiri, Secretary of the Supreme Council and President of the National Cyberspace Center, and Hossein Afshin, Vice President for Science and Technology, along with a group of experts and professionals in this field at the National Cyberspace Center.
Blockchain activists, recognizing the importance of this technology for the future, emphasized the necessity of legislating in this field. According to experts, while Iran is among the active and leading countries in knowledge and technology regarding crypto assets and blockchain, delays in legislation and the efforts of some institutions to monopolize regulation have created problems for the industry.
The Focus on Blockchain in the Country Has Been Limited to Trading
At the beginning of the session, Pooria Asteraky, Editor-in-Chief of the Blockchain, Crypto Assets Journal, referring to Web 3, blockchain technology, and token economies over the next 10 years, said: “When we talk about cryptocurrencies, we realize that in our country, this phenomenon is limited to trading, and the governance approach to this sector has kept discussions at this low level. Meanwhile, by 2030, 10% of the world’s economy will be based on tokens, and every concept of assets, value, shares, credit, collateral, and guarantees will be transformed. This will cause one of the largest wealth explosions in human history, similar to what happened after the Industrial Revolution and the internet.”
He added that Iranian activists in the blockchain field are not behind in terms of knowledge and technology: “The issue in this field, despite all its complexities, is not about technology. More than 90% of the issues in this field, both in our country and many other parts of the world are due to complexities in legal, governance, and policy matters. Since around 2018, various rulings have been issued from different governance bodies, from the Cabinet to other institutions, leading to various results.”
Wrong Legislation Destroyed the Mining Industry in Iran
The editor-in-chief of crypto assets explained that blockchain technology is defined in four general sectors: “Mining is the most basic step in this industry. The second sector is exchange, the third is decentralized financial services, and the last sector is tokenization. In 2019, the government passed a ruling on mining. According to on-chain statistics, in that year, Iran held 10% of the global Bitcoin mining market. This number dropped to 4.5% in 2021 and less than 0.5% in 2023.”
Asteraky continued: “Of course, these statistics may be inaccurate and do not include illegal mining or activities conducted using VPNs and IP bypassing tools, but these figures still show how a wrong ruling and legislation can destroy an industry. This is the case with other sectors where legislation has not even reached this point.”
He referred to the actions of the 13th government regarding crypto assets: “The late President Ebrahim Raisi had a clear vision about crypto assets; both in terms of organization and usability. This was mentioned in the economic transformation document, and people from various parts of the government, including the Economic Vice President, the Minister of Economy, experts, and middle managers, were interested in the issue, leading to the drafting of a bill for organizing crypto assets in collaboration with the Legal Vice President and other bodies.”
He continued: “This is a well-crafted bill. In the definitions section, it is well-articulated, and it also draws inspiration from a law passed by the European Union around a year and a half ago, called MiCA, which covers general issues of facing crypto assets. This bill could have moved forward in the legislative process a year ago, but due to bureaucratic hurdles in the government, it never reached the legislative stage.”
The Guardian Council Regards the Central Bank as the Custodian of Digital Currency, Not Crypto Assets
Asteraky noted: “In December 2022, a new law from the Central Bank was issued by the President. In Article 1, Paragraph ‘Z’, there is a definition of ‘digital currency’ as a centralized or decentralized cryptocurrency issued by the Central Bank. Article 49 also assigns the responsibility for digital currency to the Central Bank. Based on this law, the Central Bank considers itself the custodian of cryptocurrencies, while the history of this law shows that the bill was sent to the Guardian Council with a term other than digital currency, and the council raised objections. The Guardian Council emphasized the term digital currency rather than crypto assets.”
He continued: “This indicates that the nature of digital currency, meaning money that is centrally issued by the Central Bank, is the money currently being exchanged. However, according to the Central Bank’s definition, there is no such cryptocurrency or digital currency in Iran at the moment. Therefore, none of the cryptocurrencies are considered monetary instruments. If they are used as monetary instruments, the Central Bank will be the regulator.”
The editor-in-chief of the blockchain journal further explained: “With the government’s delay in sending the crypto asset regulation bill, in February 2023, the Economic Commission of the Islamic Consultative Assembly made a brief interpretation of the bill in the form of a draft law. Then, on June 1, 2024, during the last days of the 11th Parliament, an inquiry was raised in the Parliament asking whether the Central Bank had the right to intervene in the currency and crypto markets. The Parliament answered negatively to this inquiry.”
The Parliament Bans the Central Bank from Interfering in the Crypto Sector
Asteraky pointed out: “Therefore, at present, we are in a situation where the Economic Commission, in its interpretation, stated that the term digital currency refers only to money, not all crypto assets. On the other hand, there is still no legislation in the country that has defined digital currency or other crypto assets. Moreover, the Parliamentary inquiry has prohibited the Central Bank from intervening in the crypto sector.”
He continued: “Then we reach the period of sudden government changes, with new parliamentary committees forming, the new cabinet being formed, and the parliament voting on the new cabinet, which left the country in a state of emergency for several months. During this time, on August 3, 2024, just before the inauguration of Masoud Pezeshkian, the 14th President of the Islamic Republic of Iran, the Legal Vice President sent a letter to various ministries asking for their opinions on the same bill. This shows that the 13th government was still pursuing the organization of crypto assets up until the last minute. This issue had been pursued by the Parliamentary Committee on Article 90 for the past two years, and they examined its various security and jurisprudential aspects, interacting with various economic, monetary, and financial sectors, including the Central Bank and the Stock Exchange.”
The editor-in-chief of Blockchain, Crypto Assets Journal, concluded: “The final report from the Article 90 Committee was presented on the day the Cabinet Minister votes were being held in Parliament. This detailed report ultimately made two key demands: one, that the government speed up sending the bill, and two, that the Economic Commission follow through with the bill equivalent to the government’s draft, passed by the previous parliament. In the absence of a government, we faced decisions that led to legislation, and the Central Bank is now trying to regulate the entire sector.”
Legislation in the cryptocurrency sector conflicts with the duties of the Central Bank
Asteraky pointed out: “Of course, the Central Bank acknowledges in its literature that cryptocurrencies are a complex phenomenon with various components. For example, part of this sector may be related to the stock exchange. However, what ultimately happens is that in the absence of a law, an entity seeks to carry out the fundamental regulatory and rule-making task. We do not have this legal foundation, and this situation largely conflicts with the duties of the Central Bank, resulting in a conflict of interest.”
He further stated: “When we talk about the token economy, we are talking about a new form of economy, so we cannot delegate the decision-making about it to the traditional sector. This sector might be the only one in the technology and knowledge-based fields that has moved forward without government support and has no governmental backing. The second characteristic of this sector is that from the very beginning, it has been advocating for legislation and has raised this demand in repeated meetings, whether in legislative, supervisory, or security meetings.”
The editor-in-chief of Blockchain Research Journal said: “Currently, we are in a position where, according to the working group formed by the Supreme Council of Cyberspace, the Central Bank is performing some regulatory work, the Ministry of Economy has a regulatory document, and the Supreme Council of Cyberspace has also prepared a document. In other words, an industry is facing several parallel regulatory documents without any legal foundation to define what cryptocurrency is and to regulate it.”
The Central Bank considers itself the authority over the entire cryptocurrency sector
Abbas Ashtiani, the head of the Cryptocurrency and Blockchain Commission of the National Computer Industry Association of Iran, said: “A negative situation might arise in the country, where the Central Bank has presented a document for comments from the relevant authorities on the fintech sector, specifically blockchain and cryptocurrencies, in which the private sector has had no role. Secondly, in this document, based on Articles 58 and 59 of the Banking Law and the definition of cryptocurrency in Article 1, the Central Bank has written terms that make it the authority over the entire cryptocurrency sector, even though, based on the history and foundation of the Central Bank and reports from the Monetary and Banking Research Institute, central banks worldwide are not the authority over the entire cryptocurrency sector. Even Parliament has pointed out that the Central Bank is not the authority over all cryptocurrencies.”
He stated: “In September 2021, the Supreme Council of Cyberspace assigned the Ministry of Economy to prepare a framework for cryptocurrencies. However, until today, no major activities have been carried out in this area. The coordination group, with the Central Bank in charge under the instruction of the National Cyberspace Center, was supposed to pursue a participatory regulatory approach. Unfortunately, the private sector is not a member, and does not have voting rights, and cannot even participate in internal meetings. In this approach, the government should have raised its concerns, and solutions should have been designed through the private sector.”
The head of the Cryptocurrency and Blockchain Commission of the National Computer and Software Industry Association emphasized that regulatory quality is one of the key indicators of global standards. He added: “The Central Bank has, outside of this issue, started doing some direct regulation in this sector, and for a while, has been regulating it with an unfair bias against the cryptocurrency sector compared to other areas of the digital economy. This entity imposes restrictions on cryptocurrency exchanges, resulting in a lack of transparency and the underground market. All of these events have created a situation of uncertainty and reduced the quality of the country’s regulation.”
The direct actions of a single entity do not align with global regulatory practices
Ashtiani noted: “Given that the Supreme Council of Cyberspace has assigned tasks to the relevant authorities, the direct actions of one entity and the lack of alignment with global regulatory practices for new technologies show that we are not witnessing positive developments in regulation. Therefore, there should be an official framework issued by the Supreme Council of Cyberspace to define the responsibilities of the authorities. Currently, the legal vacuum, with the Central Bank at the center, has led to a decrease in business adoption, continued isolated actions by different entities, and the working group that has been formed only serves as a place for the government to gather.”
He discussed the concept of self-regulation (SRO) in the cryptocurrency sector: “This method has three pillars, similar to the fire triangle: fuel, heat, and oxygen. If you take away any of these pillars, the fire will go out. In international self-regulation, the government was supposed to recognize this approach as a way to regulate the sector. Therefore, the direct actions of any entity are one of these pillars.”
The head of the Cryptocurrency and Blockchain Commission of the National Computer and Software Industry Association continued: “The government was also supposed to raise its concerns. For example, the issue of inflation and finding a solution to this concern should have been discussed with the participation of the private sector. The third pillar is alignment and supervision. However, under current circumstances, it seems that only the third pillar remains, and we expect the fire to stay burning with just one pillar, which is practically impossible.”
The legislative branch should be separated from the executive
Sohrab Sameni, CEO of Zarban, emphasized the need to separate the legislative from the executive branches, saying: “This is a fundamental principle that is often violated, leading to crises. For example, the Central Bank is both the legislator and the executor and monetary crises arise from this. In reality, due to conflicts of interest, great pressure is applied in various sectors unless one superior body steps in to legislate.”
He added: “To address this problem, a technical body is needed, and the Science and Technology Department already has such a body. What is needed is higher-level authority, which can be provided by the Supreme Council of Cyberspace. Ultimately, by collaborating between these two sectors, legislation can be done, and the Central Bank will fall under the umbrella of the regulations to be implemented.”
Cryptocurrency businesses are worried about the Central Bank’s monopoly
Kaveh Moshtagh, CEO of the Blockchain Association, stated that a lot of work has been done within this association regarding self-regulation, adding: “Currently, around 160 businesses operate under self-regulation. However, the reality is that we are concerned about the Central Bank’s actions, and businesses are worried about monopoly in this sector.”
He pointed out the Central Bank’s inaction on certain duties, saying: “In the mining sector, according to at least three government resolutions, the Central Bank was obligated to take actions for the benefit of the mining process. For example, the 06/05/2019 resolution stated that if mining units export their products and return the foreign currency according to the Central Bank’s regulations, they will be exempt from taxes. However, years have passed, and the Central Bank has failed to act, leaving the industry in a difficult position. This is true for the 30/10/2019 and 06/06/2021 resolutions, and the current decisions of the Central Bank are worrying stakeholders.”
Save cryptocurrencies from centralized regulatory bodies
Hossein Eslami, board member of the National Computer Industry Association, stated: “Avoiding engagement with the innovative nature of the issue transforms the opportunity for the country into a threat. Despite the good infrastructure and scientists we have in the country, the perspective on cryptocurrencies is still threat-based. Even though various entities are pursuing regulation, we must recognize that the problem with a decentralized issue cannot be solved by a centralized regulatory body.”
He said: “Many laws and texts have been written by the government, sometimes with input from the private sector, but there has never been the courage to announce final decisions. During Mr. Abdolnaser Hemmati’s tenure, the Central Bank published a document called ‘Blockchain Revolution’ for its annual conference, but this text has now been removed from the Central Bank’s website. Our request from the Supreme Council of Cyberspace is to engage with the issue, approve a document that is also recognized by the government, and finalize it as the central text, thus saving the cryptocurrency sector from some of the centralized institutions.”
Worldwide, the regulation of cryptocurrencies is under stock exchanges, not central banks
Mohammad Ghasemi, CEO of Mazdax, stated: “Globally, the regulation of cryptocurrencies is under stock exchanges, not central banks. At Mazdax, following a previous meeting with Mr. Aghamiri and the support we received, we were able to obtain the first license for tokenizing financial assets in the capital market sandbox, which was a great achievement. This allowed us to follow global trends and implement it in Iran.”
He continued: “One of the main trends in financing is the use of new technologies, and its infrastructure involves the digitalization of both financial and non-financial assets, such as real estate, shares, and bonds. This has been successfully implemented in financial instruments. Currently, even members of the Securities Organization are worried about the Central Bank’s draft because this document limits their legal powers. While the Central Bank must engage in topics related to inflation, if it enters every sector, it will affect the financing of markets and their ability to raise capital for growth and development.”
Ghoghnoos the country’s largest blockchain project, was left unfinished
Reza Ghorbani, one of the founders of Rahkar Media Innovation Factory, referred to a book titled The Political Economy of Blockchain in Iran, which discusses the failure of the Ghoghnoos Consortium. He said: “The Ghoghnoos project was the country’s largest blockchain initiative, and its launch was seen as a huge opportunity, but it remained unfinished. Currently, the Central Bank of Iran is talking about the Rial Crypto (RamzRial) on billboards across the city. RamzRial is the Central Bank’s project, but both anti-revolutionary individuals abroad and many supporters of the regime inside the country are united in opposing this project. It is very strange that the Central Bank is pushing forward a project that everyone, both inside and outside, opposes.”
He continued: “The book The Future of Money by Eswar Prasad, one of the oldest economists, explains why CBDC (Central Bank Digital Currency) is the future of monetary policy. We view cryptocurrencies and token economies as too small; meanwhile, CBDC and the event that blockchain and token technology have put in front of monetary regulators is one of the biggest events that could change the direction of economic and monetary regulation. However, this has been reduced to RamzRial. I am a critic of the RamzRial project because the Central Bank technically cannot move it forward, and it has spoiled a significant economic concept, making it more difficult for future generations.”
The Central Bank has always hindered the activities of new technologies
The founder of Rah Pardakht stated that in recent years, the Central Bank has always obstructed the efforts of individuals working in the field of new technologies. He said: “The changes in the country’s banking structure began in the late 1990s. During these years, companies were established, and payment systems were created. This means that the issue of cryptocurrencies didn’t emerge overnight; it has gone through a long process. We had many issues with the acceptance of bank cards and ATMs, but eventually, that path was taken. Just as cryptocurrencies are discussed with criminalizing language, in 2017, we used the title ‘Removing the Stigma from FinTech’ for one of our roundtable discussions. The process of dealing with cryptocurrencies has been the same, but now it has changed.”
Ghorbani, pointing out that in the U.S., the SEC (Securities and Exchange Commission) is responsible for cryptocurrency regulation, not the Federal Reserve (U.S. Central Bank), said: “FINRA (Financial Industry Regulatory Authority) is an institution that defends consumer rights. FINRA is the leader of FinTech regulation in the U.S., which was formed in 2007, but this organization has a much longer history, dating back to 1939, when it defended the rights of traders. Meanwhile, we do not recognize the rights of traders, and in terms of cryptocurrency transactions, we don’t grant any rights to traders, leaving consumer rights unaddressed.”
He continued: “Cryptocurrency businesses are not in favor of lawlessness, nor are they against regulation, and up until now, they have been able to protect consumer rights. We need to pay attention to the fact that bigger things are happening. The combination of fintech with digital assets and cryptocurrency will have an explosive impact. We can wait for all of this to happen and then deal with it, or we can close our eyes and deny it like we did with the satellite phenomenon. But this sector is not like satellites; it is the monetary policy of the country, and ignoring it will lead to the collapse of an economy and a political state.”
The Conflict of Interests of Some Institutions Leads to National Security Issues
Additionally, Mahdi Shariatmadar, the CEO of Jibit, referred to the Central Bank’s draft on crypto-assets, saying: “The conflict of interests for some institutions may lead to national security issues. In the Central Bank’s draft, several clauses have created such a situation. For instance, it mentions that the Central Bank should establish a centralized asset custodian; this is an issue monitored by OFAC and foreign security organizations, dealing with sanctions and the currency exchange of Iranians and Iranian traders, which, if centralized, would pose a national security problem. Another issue is the applied restrictions that may be somewhat necessary, but at a certain point, they disrupt the financial balance of businesses.”
He further added that competition creates fairness and protects consumer rights: “The best regulation is the one that guarantees competition; businesses, when in competition, are forced to respect consumer rights, or else they will fall out of the competition. Whereas a centralized regulatory model does not create such competition, and ultimately, consumer rights are trampled. In competition, prices fall, security increases, and consumers receive the best services at the fastest speed. So far, competition has been present in the cryptocurrency ecosystem because there hasn’t been any monopoly, and we must be cautious not to let that happen.”
The CEO of Jibit continued: “The text that the Parliament prepared and sent as a draft to the government was a progressive text based on European Union law, which was worked on by 800 experts over two years. The parliamentary experts on laws and regulations prepared this draft, the Legal Deputy of the President reviewed it, and it was discussed in the government’s economic commission. This text could be used under the Supreme Council of Cyberspace’s resolution and in the position of the proposed text by the Ministry of Economy. The ideal situation is that we base legislation on self-regulation, but if a text is to be considered as law, the one prepared by the Parliament is more comprehensive than the Central Bank’s draft and outlines the future of this industry better.”
The Central Bank Ignores Higher-Level Resolutions
Next, Bardia Seyedahmadnia, co-founder of Wallex, pointed out that the nature of the cryptocurrency field and cryptocurrency businesses differs from that of other businesses in the country: “An important issue is the asset-driven nature and asset transfer. Another criterion is that foreign exchanges are easily accessible to Iranian users; meaning that a user can easily go from a domestic exchange to a foreign one.”
He continued: “However, it seems that this issue is not clear to an institution like the Central Bank, or it may be overlooked since the Central Bank’s document states that advertising for local cryptocurrency businesses is prohibited. How is it possible for a business to operate in the country without advertising while having a foreign competitor directly advertising in Iran?”
The co-founder of Wallex emphasized: “Cryptocurrency industry stakeholders are asking the Supreme Council of Cyberspace and the Vice Presidency for Science and Technology to take the legislative process away from the Central Bank. Due to the many conflicts of interest that the Central Bank has with this sector, it disregards many of the higher-level resolutions from the Supreme Council of Cyberspace and directly takes action for legislating in this area. This has caused institutions like the stock exchange, which deals with the stock and asset markets, to lose their authority, and every decision is deferred to the Central Bank for approval.”
Crypto-assets Are Caught in a Maze of Instable Decisions
Following these comments, Pooria Asteraky summarized the remarks of blockchain experts and activists, stating: “The Central Bank explicitly says in various meetings, and at the end of debates, that it does not want to legitimize these projects; hence, we are caught in a maze of unstable decisions.”
He continued: “Sometimes they raise religious objections to cryptocurrencies and discuss the matter of ownership, even though the Supreme Leader said that if this issue becomes law, there is no religious issue. At other times, they bring up the issue of money laundering, while less than 1% of money laundering is conducted with cryptocurrencies globally, and this figure has decreased in 2023 because cryptocurrencies are transparent and traceable. At other times, they raise the issue of exchange rates, while in the past years, every time the Central Bank imposed restrictions on the ecosystem, the exchange rate increased. They also bring up the issue of capital flight, while unofficial statistics show that if the cryptocurrency balance in the country is not negative, through exports and mining via cryptocurrencies, this balance is not negative.”
The editor-in-chief of the Blockchain Research Journal also pointed out: “We need a law in the cryptocurrency sector; otherwise, this sector will become uncontrollable for the Islamic Republic. Meanwhile, neighboring countries are granting licenses to these businesses, supporting them, and creating favorable business environments. If this happens, those who have worked in Iran will migrate to these countries, create stablecoins, and take monetary tools out of the hands of the Islamic Republic. The Central Bank is responsible for cryptocurrency and must manage it and allow blockchain services to operate. Otherwise, with repeated inactions from this institution, in the future, the rial will be lost.”
Traditional Private Sector Competition with Modern Sector Creates Conflict
Following the remarks of the experts, Seyed Mohammadamin Aghamiri, Head of the National Cyberspace Center, pointed out the conflicts with new businesses, saying: “Previously, in all new business sectors like cryptocurrencies, online stores, etc., there was opposition from the government, and that’s why the Supreme Leader said that the public sector should not compete with the private sector. However, what now causes additional challenges in the cyberspace services sector is the competition between the traditional and modern sectors, which both operate in the private sector.”
He continued: “In many of these fields, private sector actors prevent necessary processes from forming, and this requires governmental support. We cannot proceed in a purely competitive space because traditional businesses have already established themselves in the market, formed relationships, and are moving forward. Therefore, modern businesses need support.”
The Secretary of the Supreme Cyberspace Council emphasized the need to separate the regulator from the operator in blockchain and cryptocurrency sectors, saying: “This is a serious matter, and we are trying to manage it within the comprehensive regulatory system. There are industries where the regulator and the operator are the same, which has become a norm in the country; therefore, changing this path is a costly endeavor that requires parliamentary law and overarching policies to separate regulation from operation. In general, separating the regulator from the operator is a fundamental principle.”
Draft Cryptocurrency Regulation Handed Over to the National Cyberspace Center
Aghamiri noted that the National Cyberspace Center would continue working to resolve cryptocurrency-related problems, adding: “The draft document for organizing the cryptocurrency sector, which the Ministry of Economy was responsible for drafting, has been handed over to the National Cyberspace Center. If this document is approved after legal processes and necessary amendments, the Parliament must legislate within the framework of these policies. Hence, by creating a broad framework and architecture for the cryptocurrency sector based on this document, we will have a solid foundation for regulations and can proceed with activities accordingly.”
He further explained the strategic document of the Islamic Republic of Iran in cyberspace: “The strategic document approved by the Supreme Cyberspace Council was issued in September 2022. This document includes 39 systems, one of which is the cryptocurrency system, the digital advertising system, the comprehensive regulatory system, the digital economy, and data governance systems. All of these are large topics that need to be quickly formulated in cyberspace.”
The Secretary of the Supreme Cyberspace Council continued: “One of these systems is the cryptocurrency system. The Ministry of Economy is the leading institution in this system, and several cooperating institutions are supposed to work together to draft this system’s document, which will eventually go through the approval process. This document has already been sent, and feedback has been provided to the National Cyberspace Center. Although this document is confidential, we can hold a technical session on it with a group of private sector representatives.”
Hope for Self-regulation in the Crypto-asset Sector
Aghamiri discussed the concept of self-regulation in the cryptocurrency sector, saying: “Self-regulation is a new practice, and we have not had this in any other sector before. However, the self-regulation process has undergone amendments, which are documented and have been reviewed and approved for implementation. We need to take step-by-step action for these reforms because transitioning from a point where only the government regulates to self-regulation is a challenging process, but we hope it will be realized soon and that the self-regulation path progresses well.”
He also addressed criticism from cryptocurrency sector activists regarding the issuance of certain regulations and resolutions by regulators, stating: “Even if a law exists granting regulators the authority to regulate, according to Resolution 81 of the Supreme Cyberspace Council, before issuing any regulations or guidelines, they must send them to the National Cyberspace Center to ensure they align with overarching policies. Only after approval by the Center can the regulator issue them. However, previous laws are exempt from this condition, but if a regulator wants to create a new regulation, it must get approval.”
The Head of the National Cyberspace Center concluded: “Given Dr. Afshin’s appointment, I am very hopeful about the future developments because he has the necessary determination to solve problems, and we will assist in policymaking and regulation.”
Collaboration between the National Cyberspace Center and the Vice Presidency for Solving Cryptosystem Challenges
In the continuation of this session, Hossein Afshin, the Vice President for Science, Technology, and Knowledge-Based Economy, stated: “I hope the synergy created between the Vice Presidency for Science and Technology and the National Cyberspace Center will help address the challenges of emerging technologies. Like other matters, every technology—especially emerging technologies—comes with both advantages and disadvantages. In our country, since the disadvantages are often highlighted and voices that emphasize these flaws are louder, the benefits tend to be overshadowed.”
He added: “My responsibility as a representative of the emerging technologies ecosystem is to defend the domain of crypto-assets and other technologies within the government. This includes creating the necessary coordination between various institutions. However, there is greater sensitivity regarding emerging phenomena related to the country’s monetary and financial domain. We must acknowledge the nation’s monetary sovereignty and operate within its framework, which makes the situation more complex.”
The Vice President further noted: “We need to engage with various institutions such as the Ministry of Economy, the Central Bank, the Ministry of Intelligence, and others. Additionally, we require certain types of support that the National Cyberspace Center, as a governing council, can provide and facilitate. Dr. Agha-Miri, the head of the National Cyberspace Center, has a very open perspective in this field, and their background in technology and innovation helps significantly in addressing these issues.”
A New Narrative About Cryptocurrencies Must Be Presented
Afshin, emphasizing the need for bilateral interaction and the acceptance of each other’s conditions, stated: “We need to present a new narrative about cryptocurrencies. I believe that the Central Bank is not 100% opposed to the domain of crypto-assets. Therefore, we must give the Central Bank the opportunity to establish the law and conditions for acceptance within its framework. This issue has many complexities, but our commitment is to conduct high-level consultations.”
He noted: “The issue of resolving the challenges in the blockchain and cryptocurrency domain will be addressed within the Vice Presidency for Science and Technology. We will engage in discussions with various institutions and, on your behalf, create a sense of unity within the government. This effort requires legislation, and a bill has been prepared that has been agreed upon. If legislation is passed in this area, many issues will be resolved because it will define the framework for activities.”
The Vice President for Science, Technology, and Knowledge-Based Economy further stated: “The Supreme Leader’s emphasis is that we should not have a negative perspective on emerging phenomena. Our goal is to reach a consensus and shared understanding by holding several meetings within the Vice Presidency and the Digital Economy Headquarters. I promise that in this new phase, through our efforts to resolve the issue, you, the stakeholders in this domain, will feel the change. We are striving to work in coordination with the National Cyberspace Center to unlock the cryptocurrency challenge, as the connection between cryptocurrency stakeholders and the Vice Presidency has been facilitated and mediated by the National Cyberspace Center, which will be a very positive development.”
