The Ministry of Interior of the Islamic Republic of Iran has suspended the IBA. This measure came after the organization allegedly breached government regulations on its operations.
According to the Financial Tribune business reported on Sunday, the Iranian government has taken action this week to prevent the activities of the Iranian Blockchain Association(IBA).
Due to various allegations, the Ministry of the Interior banned the well-known crypto industry, including the IBA’s violation of its own regulations.
According to a notice issued by the Persian-language newspaper Hamshahri Online on Wednesday, IBA was also required to submit a detailed reports regarding its financial performance and activities provided to the Iranian social affairs organizations.
The publication revealed that the government is particularly eager to learn more about the association’s interaction with cryptocurrency exchanges.
In early June, Iranian lawmaker Rahim Zare accused “domestic NGOs involved in cryptocurrencies” of transferring foreign currencies abroad, but did not provide any evidence to support this claim.
IBA strongly denies any wrongdoing and claims that the focus of its efforts is to promote the development of blockchain technology.
Founded in 2017, the Iranian Blockchain Association is a non-profit autonomous organization composed of entrepreneurs, experts and activists involved in the blockchain industry.
One of his main priorities is to spread awareness among Iranians and avoid losses caused by cryptocurrency fraud.
The association stated that “Informing people and the authorities on risky websites and fraud cases is among IBA’s objectives”.
IBA director Sepehr Mohammadi said in a press release on his website that the new government notice has never been delivered to the association and its board members.
He reflected that issuing crypto alerts may have become the main reason for the ban. IBA recently announced a list of national high-risk companies involved in cryptocurrency-related businesses.
Mohammadi further commented: “Obviously, vested interests will do anything to stop IBA’s efforts. They managed to publicize the notice before IBA was informed”.
With the increase in the price of cryptocurrencies in the past year, more and more Iranians have begun to invest in Bitcoin and other digital assets, away from traditional markets such as foreign exchange, gold and stocks.
A recent study by the Tehran Chamber of Commerce estimated that approximately 12 million Iranians have already invested money in cryptocurrencies.
According to another study conducted by the High Council of Cyberspace, Tehran’s Bitcoin transaction volume alone reached approximately 30-40 trillion rials ($130-174 million).
Earlier in March this year, the Central Bank of Iran (CBI) ordered the country’s domestic payment settlement network Shaparak to block online payment gateways of cryptocurrency trading sites.
The IBA criticized the move, saying that measures aimed at innovative technologies were costly and unsuccessful.
“Technology moves forward come what may,” the association said, warning that blocking of local crypto portals will only push Iranians to foreign platforms.
Iran’s Minister of Finance and Economy, Farhad Dejpasand, also expressed similar concerns and concluded this month that the government cannot hinder the development of cryptocurrencies indefinitely.
