Iran banned the use of Bitcoin and other cryptocurrencies by banks and financial institutions on Monday, AFP reports.
“The ban comes because all cryptocurrencies have the capacity to be turned into a means for money-laundering and financing terrorism and in general can be turned into a means for transferring criminals' money," the country’s central bank said in a statement.
Earlier this year, the country's telecoms minister Mohammad-Javad Azari Jahromi set up a team to create Iran's own cryptocurrency.
While many see great potential in digital currencies as a way to overcome problems related to international sanctions, there are also fears that the technology could undermine the country's already weak banking system and exacerbate capital flight.Iranians working in the fledgling private cryptocurrency market said the ban was unlikely to affect their operations.
Hadi Nemati, who works for cryptocurrency exchange platform Coinex said the ruling does not mean a total ban of cryptocurrencies and doesn't include the general public.
By Siranush Ghazanchyan