Iran

The regulatory status of retail cryptocurrency trading in Iran is best classified as a 'Gray-Zone'. While the activity of buying, selling, and holding cryptocurrencies is not criminalized for individuals, the operational environment is heavily restricted and subject to sudden regulatory shifts. The Central Bank of Iran (CBI) serves as the primary regulator and has maintained a long-standing ban on the use of cryptocurrencies for domestic payments, viewing them as a threat to the national currency's stability. However, the government simultaneously recognizes mining as a legal industry and utilizes crypto assets to bypass international sanctions for imports, creating a contradictory landscape where the asset class is both embraced for state utility and suppressed for retail capital flight.

In late 2024 and throughout 2025, the regulatory framework underwent significant changes. In December 2024, the CBI approved the 'Policy and Regulatory Framework for Cryptocurrencies,' which ostensibly sought to move the market from a gray area to a regulated one by establishing licensing requirements for brokers and custodians. This move was intended to ensure compliance with AML/CTF standards and capture tax revenue. However, this legislative progress was immediately followed by strict enforcement actions. In January 2025, amidst a currency crisis, the CBI ordered the closure of Rial payment gateways for many exchanges, effectively severing the link between the traditional banking system and the crypto market for non-compliant entities. This 'stop-start' approach—legalizing the framework while choking off access—is characteristic of the Gray-Zone status.

Furthermore, the fiscal treatment of crypto has hardened. In August 2025, the 'Law on Taxation of Speculation and Profiteering' was enacted, explicitly subjecting crypto trading profits to capital gains tax. This confirms the government's intent to treat crypto as a taxable asset class rather than an illegal contraband. Despite this, the lack of a fully transparent and stable licensing regime for retail exchanges means that many platforms operate in a precarious state. Users face risks not only from domestic regulatory crackdowns but also from international sanctions, which bar them from global platforms and expose them to asset freezes if their wallets are linked to sanctioned entities.

Ultimately, while an Iranian citizen can legally invest in Bitcoin, the practical reality involves navigating a 'minefield' of banking restrictions, mandatory disclosures, and limited liquidity channels. The government's primary goal remains controlling the flow of capital; thus, while the 'ban' on trading is absent, the friction introduced by the CBI makes the environment far more restrictive than a typical 'Allowed-Regulated' jurisdiction.