Some Blockchain Professionals Engaged in a Candid Discussion with the Head of the National Cyberspace Center.

Blockchain experts shared their views in a meeting with Seyed Mohammad Amin Agha-Miri, Head of the National Cyberspace Center, and other government officials.

Meeting with “Agha-Miri”

Blockchain experts believe that while Iranian companies have managed to nationalize key aspects of this modern technology—such as infrastructure, networking, and the development of native technical knowledge—the blockchain ecosystem, unlike other technological fields, has not received support and has instead faced restrictions, lack of planning, and obstacles. However, the Secretary of the Supreme Council of Cyberspace believes that blockchain’s potential must be clarified for the authorities and that experts in this field should present their proposed projects transparently to enable substantial actions in this area.

The meeting of blockchain professionals and government decision-makers was held in Azar 1402 (December 2023) at the National Cyberspace Center. This gathering, attended by blockchain experts and decision-makers from various government entities—from the Central Bank and Securities Organization to a representative from the Islamic Consultative Assembly and the Secretary of the Supreme Council of Cyberspace—signifies a step by the public sector toward engaging with the private sector to harness the potential of blockchain and artificial intelligence, which are expected to drive information technology and Web3 in the near future.

The Nature of Blockchain Disrupts Governance Structures

Pooria Asteraky, editor of the Blockchain Research Journal: Crypto Assets, stated at the meeting, “Since the beginning of the thirteenth government, there was hope that, based on the economic strategy document and clause 22 of the Cyberspace Strategy Document, which tasked the Ministry of Economy and eight other agencies with organizing cryptocurrency in the country, we would see specific actions and changes to regulate, utilize, and develop crypto assets.” Emphasizing that blockchain and crypto are more than just cryptocurrency trading, Asteraky noted, “Web3 technology has two wings: artificial intelligence and blockchain. Private Iranian companies have successfully nationalized key elements of this technology, including infrastructure, networking, and technical knowledge, for use in the country.” Asteraky continued, “The blockchain ecosystem in Iran, unlike other technology sectors, has not received support. Cryptocurrency and blockchain companies, unlike other innovative and creative companies, do not receive any governmental, financial, or intellectual support. Instead, they face restrictions, a lack of planning, fragmented decision-making, and obstacles that hinder blockchain development.” He emphasized the importance of exchanges in advancing blockchain technology, explaining, “Financial resources and technical knowledge are consolidated in exchanges, and around the world, exchanges develop additional applications. However, if blockchain exchanges are not legally protected in Iran, it raises questions about the viability of other blockchain applications.” Asteraky added, “The term ‘crypto’ unconsciously brings the Central Bank into this field, which may not directly relate to the Central Bank’s primary responsibilities, such as managing and regulating payments within the country. Additionally, we disagree with the misconception that crypto assets are a means of currency outflow. In countries like Iran and Turkey, where inflation is high, the economic balance of cryptocurrencies is positive.”

The editor of the Blockchain Research Journal, referencing the activities of this monthly publication, stated, “We monitor the policies of various American institutions, the United Nations, the International Monetary Fund, and the World Economic Forum. Through cryptocurrencies, we are facing a borderless, global phenomenon that operates outside conventional structures, outside the dominance framework that has sanctioned us, a framework opposed to our oil and nuclear industries, and the very essence of blockchain is to disrupt this structure.” Asteraky continued, “All federal institutions and organizations that are tools of international dominance are striving to control this phenomenon worldwide. The sensitivity these institutions have regarding Iran’s use of the cryptocurrency industry is so high that, upon closer inspection, it seems unlikely that anyone would try to halt the development of this industry, let alone impose restrictions. We understand that limiting the nuclear industry and sanctioning oil is mistaken, but we do not comprehend sanctions on financial technology industries because it’s intangible to us.” He noted, “Our discussion is not about buying, selling, or tokenization, but rather about national interests and the policy the Islamic Republic of Iran intends to adopt for this benefit. We are sanctioned, we lack access to SWIFT, FATF is sensitive about us, so we must confront these issues. In this situation, it is strange that while pursuing boundary-breaking advancements in aerospace, we impose a 25-million-toman restriction on exchanges.” The editor of the Blockchain Research Journal further stated, “Our companies, without authorization or support, without loans, and facing all sorts of obstacles, have created platforms that even attract more customers than some of our banks. We must realize that our policies cannot be against the global nature of cryptocurrencies and blockchain; on the contrary, if we are mindful of national independence, we can become a global leader.”

A Tool to Tokenize Real Assets

Mohammad Ghasemi, CEO of Mazdax Exchange, discussed tokenizing real assets and the investment market sandbox. “Over the past three years, we’ve observed that asset tokenization on blockchain is a global trend. This initiative brings significant benefits to ecosystems, including attracting funding and financial resources from outside borders,” Ghasemi explained. “About a year ago, we entered the capital market sandbox with the open-mindedness of Mr. Eshghi regarding financial technology.” Ghasemi highlighted the challenges: “Innovation requires speed, and faster market entry facilitates success, but our experience involved a lengthy process. Furthermore, our laws have shortcomings. While our sandboxes are well-established, we don’t receive licenses or official letters because we aren’t a financial institution. This lack of support means that companies without licensing or support but eager to participate in sandboxes face limitations in innovation.” He stressed that regulators allowing more flexibility to adapt policies could foster innovation in the capital market.

The Issue of Lacking a Development Authority in the Digital Economy Industry

Amirhossein Rad, CEO of Nobitex, stated that the main issue for the cryptocurrency and digital economy industries over the past few years has been the lack of a dedicated body responsible for development. “We’ve had to deal with regulatory bodies whose primary role is not development and who aren’t incentivized to foster growth in a new sector. For example, in no developed country is the central bank in charge of cryptocurrency. In the U.S., the Federal Reserve does not take on a regulatory role in this field; instead, bodies like the Securities and Exchange Commission (SEC), which value innovation in the financial market, handle regulation.” Rad continued, “Similarly, in Iran, the Central Bank, by nature of its mission to control inflation, is a conservative institution and cannot focus on growth. Thus, if we officially look to the Central Bank for regulation, there will be no developmental perspective.” Rad referenced missed opportunities in the cryptocurrency field, noting, “In 2021, we published a report titled Cryptocurrencies: A Historic Opportunity for Iran. When it was published, even countries like the UAE had yet to take significant steps toward blockchain or enact related regulations. But within the past year, they quickly established the legal groundwork to position themselves as a regional hub in this industry. Even in mining, despite Iran’s significant advantages, we lagged, and the largest farms are now located in the UAE and Oman. Various conflicts and obstructionism among regulatory bodies created challenges for this industry in Iran.”

Rad pointed out that in Iran, cryptocurrency is mainly associated with trading, which is foundational as exchange activities comprise about 40-50% of the global crypto industry. Many projects rely on token-based economies, which need trading environments. However, due to weaker regulations compared to other sectors, Iran has not seen notable growth. This raises the risk of exchanges becoming unregulated, which would push transactions to international platforms, harming Iranian platforms. He suggested creating a dedicated authority for technological and innovative fields, with serious goals. “Blockchain and AI are areas where other countries, like the UAE, have been investing for over a decade. In contrast, Iran has only recently formed an AI Council, which may not progress rapidly. We need a development-oriented authority with the necessary powers to advance these areas.”

There is no successful example of restriction in the world.

Amin Amini, CEO of Wallex, highlighted how international experiences have shown that restricting cryptocurrency doesn’t work. “Fintech, after healthcare, is one of the largest investment areas for both governments and private firms. Roughly one-third of investments in this space focus on crypto and blockchain, underscoring its importance worldwide. Advanced countries like the U.S., Switzerland, Singapore, and Germany have made substantial investments in this field. Even Dubai initially banned cryptocurrency in 2016 but quickly lifted the restriction within six months, and today, Dubai serves as a regional hub with reputable global platforms operating there.” Amini noted that Turkey is another example where one in four people hold crypto, reflecting its large market. Although BTC Turk faces competition from Binance in Turkey, local policies have helped it capture more market share than Binance, demonstrating the impact of supportive national strategies. Amini explained that about ten countries worldwide have either fully restricted or imposed relative restrictions on this industry, including Nigeria, Ghana, and Afghanistan under the Taliban. However, Nigeria, after imposing restrictions, realized that it had merely driven crypto activity underground, reducing transparency and increasing black-market operations. Now, they are reevaluating to align with global standards. “China remains the only economically successful country with significant crypto restrictions, yet even there, users find ways around it. Wall Street reports that Binance still has the largest Chinese user base, proving restrictions aren’t effective.” Despite its restrictions, China has not been able to stop this field, which shows that we practically have no successful example of restriction. Even in Turkey, despite economic problems, you won’t find an article or statement from government officials claiming that crypto has weakened the lira.”

“If domestic platforms face more restrictions, more users will turn to foreign ones, increasing these platforms’ assets and income.” -Amin Amini

Amin Amini noted, “If domestic platforms in Iran are weakened, a negative cycle will form. Right now, foreign platforms like CoinEx have millions of users in Iran and are heavily advertised. If domestic platforms are further restricted, more users will turn to foreign ones, boosting these platforms’ assets and revenue. In turn, with their increased revenue, foreign platforms will expand their activities and advertising. In this situation, user data and assets will exit Iran—a situation the U.S. avoided by strengthening Coinbase to counter the Chinese platform Binance.” The CEO of Wallex stated, “There is no successful example of restriction globally. All countries, from Brazil, a developing nation, to Switzerland and the United States, are seeking to capitalize on these opportunities. If we can shift our mindset from restriction to leveraging opportunities and developing in this market, we can have a significant voice in the region and reap the benefits of what we invest in the future.”

Digital Assets as a New Asset Class

Reza Ghorbani, a member of Tehran’s Nasr Chamber and founder of Rahkar Innovation Media Factory, discussed the progress of regional competitors. “A recent report published by the Tehran Chamber’s Commission for Transformation, Innovation, and Productivity on Dubai’s digital economy revealed a stark contrast. In areas where Iran imposed barriers, Dubai created opportunities. Over recent years, Dubai has strived to transform itself from a trade hub into a digital economy hub.” Ghorbani continued, “This report introduced some of Dubai’s regulatory measures, including a focus on blockchain and cryptocurrencies. While Iran’s digital economy includes areas like logistics, e-commerce, health, and tourism, sectors related to digital assets, blockchain, and cryptocurrencies have remained in a gray area.” He called for digital assets to be officially recognized, as they are distinct from intellectual assets and represent a new asset class that spans from banking (in the form of crypto money) to the stock market (in the form of tokenized assets). He emphasized that although several Iranian ministries have established sandbox environments for their sectors, these efforts haven’t provided adequate opportunities for businesses. Strengthening these sandbox initiatives could have positive outcomes, yet no major official has signed off on these sandboxes for business use.

Ghorbani explained that up to this point, the cryptocurrency field has largely relied on self-regulation. “Businesses have tried to create a healthy ecosystem. Although law enforcement has established some requirements, the entire industry still operates in a gray area. We’ve had prior experiences with companies like Shaparak and Farabourse, which continue to operate successfully. Cryptocurrencies need a regulatory body that understands both economics and banking as well as underlying infrastructure and content.” Ghorbani noted that there’s a “regulator tug-of-war” in crypto, with various agencies, such as the Central Bank and Farabourse, each viewing the sector from different perspectives. “The National Center for Cyberspace could take the lead. They have issued directives in the past, but a more active role is required to ensure progress.”

The System’s Benefit Lies in Embracing Blockchain Technology

Hossein Eslami, a member of Tehran’s Computer Trade Association, highlighted challenges in identifying trends and understanding their impact on Iran’s economy, pointing to structural issues within various institutions. “This is why regulatory bodies are the most sensitive players rather than developmental ones. In the private sector, we have not adequately addressed these concerns, though private entities can facilitate a better understanding of this space.” Eslami continued, “Although a cryptocurrency task force was formed within the government, it did not achieve its goals. During Mr. Hemmati’s term at the Central Bank, blockchain was discussed as a revolutionary concept at the Payment Systems Conference, and a preliminary draft was presented, but it hasn’t led anywhere. In this administration as well, there is ongoing disagreement among regulatory bodies about cryptocurrency policy. For example, they have yet to decide on issuing electronic licenses (e-Namad) for crypto platforms. The indecision surrounding an issue that could influence the general public’s life is surprising.” He further emphasized the importance of a decisive approach from the National Cyberspace Center: “Initiatives like sandboxing have helped but must clear existing obstacles. For sandboxing to serve its purpose, new regulations shouldn’t be added. After regulation, we should let this technology evolve in a real environment.” Eslami insisted, “For the system’s own benefit, there needs to be faith in blockchain technology. While this technology has the potential to profoundly impact the country’s future, the authorities are still undecided. Additionally, private and decision-making institutions have failed to adequately address regulatory concerns, leading to a risk-averse stance among managers—a barrier that also needs to be overcome.”

Utility and Economic Opportunities of Digital Assets

Ali Miri, an economic researcher in the field of cryptocurrency, discussed the applicability and economic potential of digital assets: “Tokenization presents an essential and strategic solution. For example, Central Bank statistics from last year reveal that real estate prices have surged due to a decrease in purchasing power. Under such conditions, while one may not be able to afford a house, real estate can be tokenized, allowing for gradual investment without loss of value.” Tokenization also resolves certain real estate investment needs. “Someone with property who wants to use part of it as collateral or sell it can access liquidity by tokenizing their asset, benefiting both property owners and investors. This approach can lower speculative investment demands, leaving genuine demand in the market, potentially leading to a decrease in housing prices. Tokenization is also viable for assets like gold and stocks, providing direct asset access.” He added that “blockchain and tokenization could facilitate crowdfunding for small and medium-sized enterprises, a process traditionally done in the stock market. However, with blockchain, a broader segment of the population can participate.”

“The presence of cryptocurrencies can assist the Central Bank’s regulatory efforts and meet some of the public’s currency needs.” —Ali Miri

Miri also referenced the Central Bank’s currency needs, stating, “Cryptocurrencies could assist regulatory efforts and help meet part of the public’s currency requirements. Additionally, in terms of meeting foreign currency commitments, cryptocurrencies could facilitate capital return. The potential for foreign-to-local investments and freelance payments is also significant. Many freelancers struggle to work internationally due to sanctions; cryptocurrency could enable this. Moreover, digital assets may benefit e-commerce, circumventing sanctions and reducing reliance on the dollar.”

Tether Could Address Investment Preservation Needs

Farhad Fallah, CEO of Aaban Tether, pointed out, “Since 1923, the currency rate in Iran has increased 25,000-fold, most of this without cryptocurrencies, and alternative methods have historically been used for currency outflow. The increase in currency rates primarily stems from inflation and monetary expansion, not from currency outflow.” He added, “The concern arises when currency leaves the country without bringing in goods or services, leading to capital outflow. Central Bank data indicates $200 billion left the country between 2001 and 2021, unrelated to cryptocurrencies. In fact, cryptocurrencies can improve the situation. Banning cryptocurrency, as if they didn’t exist, won’t stop capital outflow and is actually harmful.” He added that limiting crypto use exacerbates brain drain, as many businesses operate on cryptocurrency due to sanctions. “Visit co-working spaces where freelancers earn income in Tether and bring it into the country. Banning cryptocurrencies could exacerbate brain drain and impede many domestic companies’ international collaborations.” Fallah suggested using cryptocurrency to manage energy resources, “If we can’t export our energy and oil, it could be converted into electricity and then Bitcoin, indirectly exporting oil. Restricting this field would mean losing such opportunities.”

Fallah explained that currency volatility creates demand for capital preservation, adding, “Tether can meet some of this need to preserve capital. During sharp dollar fluctuations, demand for currency can shift to Tether, helping to reduce exchange rate volatility. These are advantages we lose if cryptocurrencies are banned. Most crypto activities aren’t aimed at capital flight but rather at investments that individuals eventually sell, convert to rials, and reintroduce into the economy. Forbes reported that over the past four years, the number of millionaires in Iran has doubled, largely due to cryptocurrencies, which can support capital flow and the economy within the country.” He also highlighted missed opportunities in cryptocurrency mining, stating, “At one point, 10% of Bitcoin mining took place in Iran, but now it’s declining day by day. If we can’t export our energy and oil directly, this energy can be converted to electricity, and electricity to Bitcoin, which is essentially indirect oil export. By limiting this field, we miss out on such opportunities.”

Opposition to Cryptocurrencies Stems from Lack of Understanding

Issa Keshavarz, founder of Ubitex Exchange, said, “Opposition to cryptocurrencies comes from either lack of knowledge or counter-revolutionary influences. The banking system is the risk, but to see the banking system thrive, and for stock and foreign investments to succeed, we must move toward cryptocurrencies.” He added, “Despite challenging conditions, businesses in the crypto space continue to operate successfully. If these exchanges had not proven themselves, the experience of failed financial and credit institutions would have repeated. From the perspective of authorities, issuing licenses prematurely may seem risky, but they need to recognize that crypto businesses are here to stay and contribute.”

Increased Restrictions in the Cryptocurrency Sector Undermine Transparency

Mehdi Fatemian, head of the Fintech Association, emphasized that the growth of the country’s digital economy hinges on addressing existing challenges. He noted, “Self-regulation began under the exchange working group eight months ago, facing opposition along the way. We, as associations, worked hard to see it succeed. We urge the Supreme Council of Cyberspace to continue its support so that we can become the first group in business to achieve self-regulation. Additionally, obstacles regarding internet payment gateways and obtaining e-Namad need to be removed under the pretext that they lack official recognition.” He highlighted, “Increasing restrictions in the cryptocurrency sector won’t shrink the sector but rather eliminate its transparency, driving it toward markets where the Central Bank can’t leverage its data. Limiting the cryptocurrency sector will push it underground, giving foreign, anonymous exchanges a competitive advantage. They are conducting identity verification with Iranian national IDs and offering various payment methods. In such a situation, there is no transparency, and the Central Bank is unable to monitor them. Currently, methods such as money laundering and gambling occur through these means.”

Legally, New Phenomena Don’t Require Recognition

Mohammad Reza Alipour, a legal researcher, addressed the topic of cryptocurrency legislation and the role of the National Cyberspace Center. He stated, “There’s an initial notion that technology must first gain official recognition before activity in the field can proceed; however, this is a misconception from a legal standpoint. Any organization or institution that claims economic sectors or others that operate without permission are prohibited is violating legislation passed by Parliament, the Constitution, and the Supreme Leader’s general policies.” He continued, “A trend has developed, both in the public and private sectors, assuming that every activity requires a license. This has led to the belief that digital assets must be officially recognized, although there is absolutely no need to recognize new phenomena. Technology serves as a tool for elevating human social interactions to the next level, using updated methods within existing frameworks.” This legal researcher added, “The principles set forth in e-commerce law can guide many digital economic activities. However, our flawed practices have led us to believe that, despite no need for licensing, we should still seek recognition for new sectors.”

Alipour then posed the question of how legal frameworks should respond: “Legal systems vary. In Gulf countries, where legal frameworks are less grounded in jurisprudence, the response to new technology is often to create ministries for fields like artificial intelligence. In deeper legal systems, such as those in the United States and Europe, issues are examined carefully within designated institutions, and it’s rare for new institutions to be established.” He elaborated, “In cyberspace, until Supreme Leader policies were communicated and the High Council for Information was formed, no significant measures had been taken since 1991. Afterward, the Supreme Cyberspace Council was established, and the National Cyberspace Center was tasked with overseeing regulatory agencies and defining their competencies. However, this has not been adequately achieved so far.” He added that even regulatory bodies haven’t fully grasped cryptocurrency, suggesting, “It’s crucial to first gain a correct understanding of the issue. Then, due to the various natures involved, qualified institutions must be identified. Each type of crypto asset, with its unique characteristics, has a specific regulatory body in the traditional legal system, such as the Central Bank or the Securities and Exchange Organization. Each of these bodies needs a clearly defined jurisdiction to determine whether policies of restriction or development should be applied.”

High Data Concentration in Exchanges

Bardia Seyedahmadnia, co-founder of Wallex Exchange, discussed regulatory concerns: “Through meetings with various Central Bank and judicial branches, we realized the Central Bank’s primary concern is capital flight. We’re discussing trading platforms that facilitate both incoming and outgoing capital. Access to exchange balances, positive or negative, shows that capital outflow is negligible relative to transaction volumes. The second issue pertains to export currency. Domestic exchanges allow users to trade cryptocurrency, creating an isolated environment for companies to bring in export currency.” Addressing concerns of the judiciary, he explained, “The main issue in this area is the increasing number of fraud cases. This can be addressed. Out of 10 million cryptocurrency users, around 8 million are verified on Iranian platforms. If the judiciary could connect with these platforms and inquire about transactions’ origins and destinations, fraud cases would be fewer and easier to resolve.” The Wallex co-founder continued, “It’s argued that there’s widespread fraud and large-scale money laundering, but our data shows that significant transfers, which would evade detection, are not conducted through transparent domestic platforms but are user-to-user. This means such transfers are hardly traceable, with or without exchanges.”

Seyedahmadnia explained that the exchange sector has been active in Iran for six years: “Today, we can say that data concentration in the exchange sector is high, and exchanges provide usable data sources. Therefore, if any institution decides to impose restrictions, data and oversight will be lost. Limiting and ultimately destroying this sector will prevent future data monitoring, and fraud cases will increase due to an opaque, unofficial market. Cryptocurrency exchanges have developed algorithms in their platforms to prevent phishing and rental accounts, which could help authorities combat phishing and similar scams.”

The Securities and Exchange Organization’s Approach to Digital Assets

Following private sector discussions, government officials spoke. Majid Eshghi, chairman of the Securities and Exchange Organization, elaborated on the organization’s approach to digital assets: “In the digital asset realm, the approach is that the risks associated with these assets, similar to other financial assets, warrant regulatory oversight for public offerings. This approach aligns with most securities exchanges worldwide, as we view digital assets as an extension of capital market development.” He continued, “Assets were initially physical, then gradually securitized, and now tokenization of assets like gold and coins is discussed. Tokenization serves as an investment tool for individuals. The same approach should apply to digital assets, which is why we’ve held sessions to address this sector’s issues.” He also explained, “In terms of cryptocurrencies, there are serious concerns. Apart from whether or not they serve as payment tools, our Committee on Islamic Law hasn’t issued any rulings on major cryptocurrencies, so we’ve refrained from addressing them. However, we’ve begun registering other crypto assets backed by financial or physical assets in our sandbox, marking the start of the tokenization process for smaller assets.”

Eshghi added that the capital market works with licensed financial institutions: “Part of our risk management in the capital market involves a licensed financial entity with the necessary considerations in different sectors. If this entity commits a violation, we can pursue criminal and disciplinary actions under securities law. Consequently, our overarching strategy is for digital asset ecosystem participants to either register as financial entities or collaborate with one.” He noted, “We’ll obtain a license from the High Council of Securities to establish a regulatory body under the Securities and Exchange Organization, tasked with membership and regulation. This agile body would oversee members, manage assets, and host transactions. It could cover a significant portion of financial and physical assets registered in the capital market.” Eshghi pointed out, “In this field, issues such as money laundering and identity verification also come up. We have the largest identity verification system, with over 60 million individuals registered, including shareholders of justice shares and general investors. Around 40 million people have been verified, and their data is available in the system. We can utilize these systems for identity verification, and other anti-money laundering laws can be enforced through this securities-affiliated regulatory body.” He concluded, “While the Securities and Exchange Organization currently has no formal program for cryptocurrencies, given the ongoing Islamic considerations, we hope to reach serious decisions in collaboration with the Central Bank regarding major cryptocurrencies. However, a promising path has opened for tokenized assets, and we’re incorporating private sector feedback for regulatory guidance and tools.”

Fintech Members Should Have Voting Rights in Approving Documents

Mojtaba Tavangar, head of the Economic Committee of the Islamic Consultative Assembly, remarked during this meeting, “At one point, Parliament decided to legislate on cryptocurrencies. However, when the government decided to establish a National Cryptocurrency Committee, Parliament also opted to cooperate with the government so that blockchain ecosystem perspectives could be represented within the same committee. Eventually, that committee’s activities halted, so we decided to resume the effort within Parliament.” He emphasized the role of the Supreme Council of Cyberspace in organizing the country’s digital space, stating, “This council can serve as a unifying thread, allowing sectoral policies to be addressed within other institutions—for example, examining cryptocurrency discussions within the Central Bank or crypto assets within the Securities and Exchange Commission. The feedback from these bodies should come back to the council, where they can resolve any conflicts and approve policies. It is essential that fintech members have voting rights in approving such documents.”

Avoiding Generalities in the Blockchain Sector

Mehram Mahramian, Deputy of New Technologies at the Central Bank, urged blockchain stakeholders to present their proposals as clear regulations and numerical data, saying, “Stakeholders must articulate, beyond regulatory limitations, the extent of blockchain’s impact on the country’s Gross Domestic Product (GDP). For instance, how might cryptocurrencies facilitate imports and exports? What role does blockchain play in inflation? All these answers should be provided with specific figures, moving us beyond generalities.” He highlighted the risks within the blockchain and cryptocurrency sectors, urging stakeholders to answer questions like: “What are the specific risks for each crypto exchange? To what extent is cryptocurrency creation aligned with traditional monetary processes? What percentage of cryptocurrencies are used for smuggling goods, currency laundering, gambling, or collateral lending? How often do direct or indirect fraud cases occur, and to what degree are cryptocurrencies used as payment tools?” He concluded that having these figures would allow for a deeper exploration of the field.

The Need for Rapid Regulation in Cryptocurrency

Amin Kolahdoozan, Head of the Center for E-Commerce Development, highlighted the need to bolster the role of the National Cyberspace Center, stating, “If we continue to rely on current legal and regulatory capacities for innovative businesses, our progress will be limited. Government managers can only make decisions within a certain framework, but the National Cyberspace Center can quickly establish this framework, at least initially, for experimental and learning purposes.”
He continued, “The topic of blockchain is vast and generally unrestricted, but regarding cryptocurrencies, immediate regulations—even if limited and temporary—are essential. Here, the National Cyberspace Center can pave the way.”

Review of the Cryptocurrency Sector by the High Commission of Regulatory Oversight

Seyed Hadi Sajadi, Deputy for Economic and Regulatory Affairs at the National Cyberspace Center, explained, “Approximately three years ago, a cryptocurrency document aimed at organization was issued. This document had two main objectives: identifying those engaged in legitimate activities from those involved in criminal activities. Consequently, a committee was formed to manage this task, resulting in a defined and trackable number of participants in the sector.”
He added that the National Cyberspace Center had received reports regarding issues faced by this sector, such as the E-Namad initiative. The matter was once raised in the High Commission of Regulatory Oversight, and the authority to grant E-Namad was delegated to a specific working group.
Sajadi stressed, “We should refrain from attempting to legislate in the dynamic realm of cryptocurrencies since setting regulations would hinder adaptability. Instead, we should employ regulation, allowing flexibility. The private sector’s recommendations can be assessed, enabling us to enact suitable regulations.”

The Deputy of Economic Affairs and Regulation of the National Cyberspace Center stated: “The 81st resolution of the Supreme Council of Cyberspace has granted the High Commission for Regulation the authority to regulate at two levels. The first level addresses major issues, which, after approval by the High Commission, must also be approved by the Supreme Council. The second level allows the High Commission to approve regulations based on the major resolutions of the Supreme Council and send them to the Secretary of the Supreme Council for announcement. The enforcement of these regulations is akin to that of the Supreme Council’s resolutions.” Sajadi continued: “This capability gives us the flexibility to establish faster regulations. Our belief is that we should not enter into legislation regarding cryptocurrencies because this field is dynamic, and regulation can complicate changes. Instead, it is better to utilize the regulatory powers granted to the High Commission through Resolution 81. Proposals from the private sector in this area can be examined to help us establish regulations.”

Bring Major Strategic Projects to the Table with Data

Concluding remarks from both private and public sectors, Seyed Mohammad Amin Agha-Miri, Head of the National Cyberspace Center, stated, “Our goal is to enhance citizens’ lives, and we pursue every matter raised in the High Commission of Cyberspace Regulatory Oversight, aiming to foster digital economic growth.” He highlighted the importance of demonstrating blockchain’s appeal, saying, “Blockchain advocates claim they can meet the demand for USD through Tether or finance housing demands by selling fractional property shares and tokenizing them. Such initiatives attract governmental interest, including from the Central Bank.”

Agha-Miri continued, “We encourage sector stakeholders to present major strategic projects with data. The more transparent and realistic the field becomes, the better we can make progress while considering risk analysis for more appealing actions.” He noted that if laws and regulations need refinement, this should be clearly articulated, as the goal is to find the best solutions. Once a responsible entity drafts a strategic document, it is sent to the National Cyberspace Center, reviewed in the relevant committee, and the final outcome can be shaped by the private sector’s input.