Iran government reportedly bans a local blockchain association

The Social Affairs Organization of the Ministry required reports on IBC’s financial performance and dealings with cryptocurrency exchanges via a notice posted in local newspaper Hamshahri Online last week, according to local sources.

Over the weekend, the ministry blocked the association’s activities, but an IBC spokesperson, the CEO of one crypto exchange listed as sponsors of the association’s website, Sepehr Mohammadi said that there was no verbal or written warning was given to the board members.

In an open letter to the Social Affairs Organization, the IBC chairman noted that monitoring the performance of blockchain ecosystem participants is a right to the association. He added that issuing and publishing warning lists for new users to avoid traps is also a mission for the IBC.

Several high-risk companies across the country involved in crypto were on the IBC warning list, so Mohammadi believes this is the leading cause of the ban. 

“Vested interests will do anything to stop IBC's efforts. They managed to publicize the notice before IBA was informed,” Mohammadi added.

Read: Iran may reap upwards of $1 billion in annual Bitcoin mining revenues

According to the local media, a member of the parliament accused crypto-related domestic nongovernmental organizations of transferring foreign currency overseas. As one of the NGOs in the crypto and blockchain space, IBC denied the claim and said the association is focused on promoting blockchain technology in the country.

Following a “Summer Ban” for crypto mining, Iran is seeking healthy regulation for cryptocurrencies. Iranian President Hassan Rouhani said the country needs to legalize cryptocurrency activities to preserve and protect national interests. He called for a joint study between different parties to establish a legal framework for cryptocurrencies.