Iran’s Government Blocks Access to Crypto Exchanges

Hassan Rouhani blocks access to crypto exchanges - CoinShot

Beginning in May 2018, the Iranians began to experience difficulties with access to crypto exchanges and various platforms related to Bitcoin and other digital money. Binance, Blockchain and LocalBitcoins became hard-to-reach, even with the use of VPN and other ways of bypassing locks.

One of the Iranian crypto-enthusiasts anonymously told reporters that many acquire Bitcoin as a store of funds, since it’s easier than buying dollars on the black market. Annual inflation of the local currency has already reached 127%.

As the director of IranObserved Project at the Middle East Institute Ahmad Khalid Majidyar said:

“President Hassan Rouhani doesn’t want the Iranians to transfer foreign currencies outside the country, especially dollars. If diplomacy fails, it will mean further restrictions that will affect cryptocurrencies.”

Most local economists are confident that the situation forces the Iranian government to restrict cryptocurrency trading. In April, financial institutions were banned from working with digital money as part of a program to combat money-laundering. Then the head of the economic committee, Mohammad Reza Pourebrahimi, said that crypto traders negatively affect the country’s economy, because billions of dollars are spent on international exchanges.

Now the government without warning began blocking access to exchanges and other sites that work with digital money, anonymous sources say. Authorities use special tools for deep analysis of traffic to block it even in spite of VPN.

The country has an uncertain situation with regard to the crypto legal regulation. People continue to buy and sell cryptocurrencies using fiat money at personal meetings.

Last year, Iran was one of the most advanced cryptocurrency countries, local people believed in support of digital money by the government. And in February 2018, blockchain startups actively worked with financial regulators.

Although there is no official statement about the prohibition of crypto exchanges, but the people of Iran are already experiencing difficulty with trading platforms and sites related to Bitcoin and other cryptocurrencies.

While in the country there is no legal ban on digital money, but the residents of Iran are already experiencing difficulties when working with trading platforms and sites associated with Bitcoin and other cryptocurrencies.