TEHRAN: Iran’s central bank has officially banned the use of cryptocurrencies in financial transactions in order to prevent money laundering and terrorism, a newspaper reported Monday.

The move is seen as part of Tehran’s efforts to control the currency market after the rial hit an all-time low earlier this month. The Donya-e Eqtesad daily says the ban applies to “all monetary and financial centres of the country,” including banks, financial institutions and currency exchange offices.

Though cryptocurrencies, such as bitcoin, have never been authorised in Iran, they were available in parallel markets.

Cryptocurrencies are created and exchanged independent of banks or governments. Transactions are typically anonymous, but the currency can be converted into cash when deposited into accounts at prices set in online trading.

Only a handful of countries ban cryptocurrencies outright, but there are several large countries with existing laws or regulations that may make bitcoin holding and trading a legal gray area.

The largest economy that bans bitcoin and other currencies outright is the South Asian country of Bangladesh. Bolivia and Ecuador ban citizens from holding cryptocurrencies, but trading in those countries still happens because of lax enforcement.

Published in Dawn, April 24th, 2018