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In a blow to cryptocurrency traders in Iran, the Central Bank of Iran (CBI) announced that cryptocurrency trading was not allowed in the country.
The circular issued by the CBI said that financial crimes such as money laundering, supporting terrorism (http://www.irna.ir/en/News/82894043), and exchange of sums between wrongdoers were possible through virtual currencies or cryptocurrencies.
Since cryptocurrencies such as bitcoin and Ethereum, do not abide by any central banking authority and are completely decentralized, this makes them an easy target.
Interestingly, the circular pertaining to anti-money laundering activities do not specify that cryptocurrencies fall under this category.
Indirectly, the circular states that, “a. The acquisition, possession, or use of proceeds obtained from illegal activities knowing that they have been acquired, directly or indirectly, through the commission of an offence;
b. The conversion or transfer of property for the purpose of disguising the illegal origin of such property, with the knowledge that it has been obtained, directly or indirectly, through criminal activities; or of assisting any person who is involved in the commission of the predicate offence to evade the legal consequences of his/her actions;
c. The concealment or disguise of the nature, source, location,
disposition, movement or ownership of property derived, directly or indirectly, from a crime.”
In other words, any “suspicious transaction” that cannot be tracked by banks and other relevant institutions and information that cannot be traced by banks including, name and address of the sender, is deemed illegal and falls under money-laundering.
Another circular pertaining to “suspicious activities” said that it needed to fill certain criteria such as:
1. Type of the activity.
2. Date, time and the amount of the transaction.
3. Identification and address of the person engaged in the transaction.
4. Identification of the beneficiary of the transaction.
5. Account numbers used for the purpose of concluding the transaction and/or banking activities.
6. Indications and evidences which caused the suspicion.
Source: http://www.crypto-news.in/news/central-bank-iran-puts-end-cryptocurrency-trading/