English 
فارسی (Persian) 
Türkçe (Turkish)
On Monday, May 29, 2019, the honorable members of the parliament approved Article 17 of this bill during the review of the amendment to the Law on Combating Smuggling of Goods and Currency. Of course, this amendment bill has 59 articles, which are gradually awaiting the review of various articles and approval. Of course, the Law on Combating Goods and Currency Smuggling was approved in 1392 and revised in 1394. In 2019, after 5 years, according to the announcement of the official authorities, with the approval of this new law, the fight against the smuggling of goods and currency will be solved in a more systematic way.
With the resolution of most of the problems in this struggle, its positive effects on the country’s economy will be revealed. This amendment on the law against smuggling of goods and currency was based on the announcement of official authorities and in accordance with their expectations.
But what we are considering here is the seventh note of Article 17 of this law. In fact, this note has been determined in some way about cryptocurrencies or, as stated in the text of the law, about digital currencies. In this note, all cryptocurrencies such as Bitcoin are the subject of this bill, and the rules and regulations related to currency are valid for them. In the following, I will explain about this note and the results of the approval of this law;
Note issued from Article 17 of the Law on Combating Smuggling of Goods and Currency
In Note 7 of Article 17 of the Amendment Bill of the Law on Combating Goods and Currency Smuggling, it was stated that:
Note 7: All cryptocurrencies (digital currencies) are the subject of this law, and the crimes, violations, guarantees of executions, as well as all the rules and regulations related to currency in this law are also enforced on them.
It should be noted here that digital currencies are not clearly defined in this law. Because numerical is basically synonymous with numeric of currencies and we don’t have a phrase called numeric of currencies in the field of cryptocurrencies, or I personally didn’t see it. But the term Alpha numeric of currencies in this field refers to currencies that are based on numbers and letters. But the fact that currencies are only based on numbers is an issue that I have never faced. Maybe the problem is in the violation of my knowledge.
In fact, according to this law, wherever currency is mentioned, cryptocurrencies are also meant. Considering that buying and selling currencies without the permission of the Central Bank is against the law; The purchase and sale of cryptocurrencies is prohibited without the permission of the central bank. Of course, it should be noted that this law had not been fully approved by the parliament at that time; Because it has 59 articles that must be approved by the Guardian Council.
The legality and illegality of cryptocurrencies based on the issued bill
In the general situation of the anti-trafficking of goods and currency law, if it is approved and implemented, the purchase and sale of cryptocurrencies without the permission of the central bank will be declared illegal in Iran.
“The noteworthy point and consideration here is that the purpose of examining these cases was not and is not in any way to raise a political debate. Rather, the only purpose is to examine the perspectives created following the law to combat the smuggling of goods and currency for loved ones interested in cryptocurrencies.“
Among the questions that have been sent to me by you, I have answered the most frequent questions for you.
Does this bill mean the legalization of cryptocurrencies?
In response, I have to say that no, the law against smuggling of goods and currency does not mean the legalization of cryptocurrencies. Rather, this law means the opposite of declaring cryptocurrencies illegal. Of course, in a more precise expression, the concept of declaring the buying and selling of cryptocurrencies illegal.
I personally witnessed the wrong understanding of many friends from the text of note 7 of this bill, who thought that cryptos will soon be declared legal, and they were very happy about this. From my point of view, the reason for this misunderstanding was that part of the text of note 7, which said that all cryptocurrencies or digital currencies are considered as currencies subject to this law.
Therefore, the conclusions indicated that crypto-currencies are classified as common currencies, and since common currencies are free, these cases are also allowed based on the laws approved by the Central Bank.
This withdrawal allowed legal exchanges to freely buy and sell cryptocurrencies based on the rules set by the central bank. While in general this perception and conclusions based on it are wrong;
Because this provision of the subject of this law is actually meant to limit the definition of this law and will not be used in other cases. In other words, they say that the interpretation of the law, especially in criminal law, should be narrow, that is, it should be limited to the same text specified in the law and should not be extended to other cases.
An example of forex legal cases
For example, in the discussion of forex legal issues, Article 1, Clause 24 of the Securities Law states that the concept of financial instruments and securities are considered equivalent in the text of this law. This means that by referring to the text of the securities law, you will see that the financial instruments in this law are securities.
But anyone with even a little knowledge of economics knows that financial instruments are completely different from securities. Securities are a small subset of financial instruments. By studying this law and interpreting it extensively, you will understand that in this case, money and checks, since they are financial instruments, should be included under the stock market and securities.
For a more vivid example, imagine that in a contract, the name of the lessor is Hassan Hosni and the name of the tenant is Hossein Hosseini. Now, because Mr. Hassan Hosni is the lessor in this contract, it does not mean that this applies to all contracts and Mr. Hassan Hosni is the lessor in all of them; In fact, such a perception of this issue would be completely ridiculous.
Therefore, in Note 7 of Article 17 of the Law on Combating Smuggling of Goods and Currency, it was also meant that wherever there was talk of currency, cryptocurrencies are also included. And since according to this law, the buying and selling of currencies by unauthorized persons is prohibited and declared a crime, as a result, the buying and selling of cryptocurrencies by unauthorized persons is also a crime according to this law. And this does not mean that the cryptocurrencies have been announced based on this legal note.
Will only authorized exchanges be able to buy and sell cryptocurrencies?
Among the other frequently asked questions of some other friends regarding Note 7 of Article 17 of the Anti-Trafficking of Goods and Currency Law, we can refer to the question that they have asked if only authorized exchanges can buy and sell cryptocurrencies and other people will not have this possibility.
The answer to this question is no. Nowhere in this bill to amend the Law of Goods and Currency Smuggling has it been stated that money changers are allowed to buy and sell and provide cryptocurrency services. Secondly, in accordance with the 1996 resolution of the Supreme Council on Money Laundering, regarding cryptocurrencies, it was announced that institutions under the supervision of the Central Bank should beware of any services related to cryptocurrencies or cryptocurrencies. It was further stated that any services of banks, exchanges and other institutions under the supervision of the Central Bank in the field of cryptocurrencies are prohibited.
Notice of the Central Bank regarding the prohibition of cryptocurrencies
In response to some other questions of this chapter, whether this opinion is only for institutions under the supervision of the central bank? Does that mean only the centers that have a license from the central bank or not? It should be said that the activities of exchanges in the field of cryptocurrencies have been banned so far. Again, two years later, the central bank issued an announcement related to cryptocurrencies and poured clean water on the hands of all the activists in this field.
1- According to the Central Bank’s first announcement, the issuance of cryptocurrency backed by Rials, gold, precious metals and other currencies is the monopoly of the Central Bank.
2- Secondly, the formation and activity of individuals to create and manage a money and payment network based on block chain technology (Blockchain) is considered illegal from the point of view of the Central Bank.
3- Thirdly, any loss or damage resulting from activity based on monetary and payment networks based on block chain technology and businesses related to it, is directed at its publishers, adopters or clients. This case was because if someone loses, he cannot blame the central bank for his losses like credit institutions.
4- The matter of extracting world-class cryptocurrencies and its conditions are being investigated by the economic commission of the government, and after making the necessary decisions, its conditions will be announced in accordance with the above regulations and resolutions.
Of course, later, the authority to extract Bitcoin and mining other currencies was taken from the Central Bank; Despite the fact that it was never in his possession and the ministry was kept silent. As a result, people active in the field of mining managed to continue their activities and obtain a license. But unfortunately, we did not see any progress in the buying and selling of cryptocurrencies.
It should be noted that with the approval of this layer of anti-trafficking and money laundering law, we will see the ban on buying and selling cryptocurrencies by ordinary people, exchanges and banks, even with a license. Unless we witness the announcement of new rules by the central bank. Of course, the matter is very unlikely;
Because even in advanced countries, we have seen that the central bank has not allowed exchanges and banks to buy and sell cryptocurrencies.
The central bank’s opposition to buying and selling cryptocurrencies
The next point that I have personally witnessed was that the honorable Deputy of the Judiciary in cyberspace affairs, despite the explicit opposition of the Central Bank, has taken the path of interaction with digital currency exchanges in the last one or two years. As a result, we saw that some crypto buying and selling sites were able to get out of the filter.
Considering that the current bill of the government has been sent to the parliament with the favorable opinion of the central bank, it can be accepted that the central bank is completely against buying and selling cryptocurrencies and we currently and maybe for a long time do not allow the buying and selling of cryptocurrencies and cryptocurrencies. We will not have
This issue includes the status of all institutions and exchanges under the supervision of the central bank, as well as private sectors. With the approval of this law, the central bank will have enough leverage to prevent and put pressure on crypto exchanges.
Considering that blockchain is a decentralized system; The key to connecting and disconnecting it, or to put it better, controlling it, is not in the hands of a specific person, institution, government or organization. Therefore, naturally, no central bank throughout history has supported such a system and will not support it.
What will happen in case of the final approval of the anti-trafficking law?
What is evident is that it is not easy to talk about the future. Certainly, the law against smuggling of goods and currency will declare the work of cryptocurrency exchanges completely illegal. It seems very unlikely that the Central Bank will issue a license to institutions or exchanges in this area. In general, there is a negative government view of cryptocurrencies in Iran.
Even in the past years, many friends hoped to get permission, but this was not possible and this issue is repeated every year. Unfortunately, from the government’s point of view, digital currencies are considered to be used in the fields of money laundering, crime, gambling, etc.
The government’s view of blockchain is limited to filtering, and according to the conditions of the embargo, in my opinion, nothing pleasant will happen in this field. As a result, existing strictures for online exchanges can be a new self-sanction and this sanction will be added to other sanctions.
In this situation, the country’s top economic decision-makers have aligned themselves with Mr. Donald Trump . As soon as the activity of buying and selling cryptocurrencies is declared illegal, electronic currency exchanges will go underground and continue to work with the lights off, and some will say goodbye to this area until favorable conditions are reached.
The result of strictures on the exchanges
As a result of all these strictures, we will definitely see the creation of many channels and sites that will start their activities on a limited scale in this dusty atmosphere. Finally, with the further expansion of digital currencies in Iran and around the world, their value will also reach higher price levels. In addition, the increase in the number of anonymous exchanges will also lead to the emergence of a new blockchain.
In this case, instead of a few central online exchanges, we will soon see hundreds of exchanges; Here too, blockchain’s decentralized logic will open its way.
It is in this situation that we have to wait for the decision and performance of the senior economic decision-makers who want to do with a few hundred exchange sites and channels instead of a few exchange sites for electronic currencies and cryptocurrencies? And how to maintain their centrality in a world that is moving towards decentralization.
Despite all the strictures, blockchain and cryptocurrencies are quickly penetrating the internet. Even people who do not face it voluntarily (experience has shown that it will never happen voluntarily in our country) will soon have to face it.
In such a situation, the task of market activists and young friends who are in this business is also clear that there will be a wise and strong desire to crawl in the corner in this situation. But because the following half verse will always win;
I am if I go, I am not if I don’t go……..
Due to the fact that people and various exchanges had widespread protests about this position, fortunately we saw the removal of this note from the law.
