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Retail_Trading_Status

Allowed-Regulated High Confidence
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Status Changed

Previous status: Gray-Zone

Reconciled from live analysis after human review confirmed status as Allowed-Regulated. Original new analysis incorrectly classified as Gray-Zone. The live analysis, supported by external validation and reviewer notes, confirms the existence of a formal licensing regime under the Central Bank of Iran (CBI), with dominant domestic exchanges like Nobitex operating under CBI oversight. The December 2024 regulatory framework establishes clear rules for licensed entities, moving beyond a gray zone. New factual information from the latest analysis (e.g., the August 2025 tax law and details on payment gateway restrictions) has been incorporated to support the correct regulated status.

Analysis ID
#862
Version
Latest
Created
2025-12-13 07:21
Workflow Stage
Reconciled

Executive Summary

Retail cryptocurrency trading in Iran is Allowed-Regulated under a strict licensing and control regime by the Central Bank of Iran (CBI). The CBI's December 2024 'Policy and Regulatory Framework for Cryptocurrencies' mandates licensing for exchanges, brokers, and custodians, with rigorous AML/CFT compliance and tax obligations. The government actively utilizes crypto for import payments to bypass international sanctions, while retail access to fiat is controlled via a state-monitored API. Domestic payments using crypto remain banned, and the CBI has enforced restrictions on Rial payment gateways to control capital flight, resuming access through a government-controlled API for licensed entities.

Key Pillars

The primary regulator is the Central Bank of Iran (CBI), which has sole authority over the cryptocurrency market. Core compliance requirements include strict KYC/AML procedures and tax obligations for licensed entities. Licensing is mandatory for cryptocurrency exchanges, brokers, and custodians to operate legally. Capital gains tax on crypto trading is imposed under the Law on Taxation of Speculation and Profiteering (August 2025). Licensed miners are required to sell coins to the CBI for import funding.

Landmark Laws

Policy and Regulatory Framework for Cryptocurrencies (CBI, December 2024): Mandates licensing for crypto exchanges and custodians, emphasizing AML/CFT regulations and tax obligations under CBI supervision.
Law on Taxation of Speculation and Profiteering (Parliamentary Act, August 2025): Imposes capital gains tax on speculative assets including cryptocurrencies.
CBI Directive on Payment Gateways (CBI Directive, January 2025): Ordered the closure of Rial payment gateways for crypto exchanges to control currency depreciation, requiring platforms to meet strict new licensing criteria to operate.
Cabinet Decree on Mining Regulation (Cabinet Approval No. 58144, August 2019): Legalized crypto mining as an industrial activity subject to licensing by the Ministry of Industry and requiring electricity to be paid at export rates.
Bans financial institutions from handling cryptocurrencies (CBI, 2018): Prohibits financial institutions from engaging with cryptocurrencies due to AML/CFT concerns.

Considerations

Cryptocurrencies are treated as assets, and access to fiat currency (Rial) on/off ramps is tightly controlled by the CBI through a government-controlled API. KYC/AML compliance is a central pillar of the regulatory framework. There are concerns about capital flight, money laundering, and tax evasion. Banking access for crypto exchanges is volatile and subject to sudden restrictions by the CBI during currency crises. Domestic payments using cryptocurrency are explicitly illegal. The government uses crypto for import payments to bypass international sanctions, while simultaneously restricting retail capital flight. International exchanges (e.g., Binance) ban Iranian users due to sanctions, forcing reliance on domestic licensed platforms (like Nobitex) or VPNs and intermediaries.

Notes

In 2018, the CBI initially banned financial institutions from handling cryptocurrencies. In 2019, crypto mining was recognized as an industry. The December 2024 regulatory framework gives the CBI extensive access to user data and transaction records. The CBI controls fiat-to-crypto transactions through a government-controlled API. Some Iranians use VPNs and fake IDs to access international exchanges. Advertising related to crypto mining is banned due to energy concerns. The government's dual-track approach embraces crypto for state utility (imports) while suppressing retail capital flight. The analysis reflects the situation as of late 2025, highlighting a pivot from a 'hands-off' approach to a 'control and tax' strategy.

Remaining Uncertainties

  • The exact list of currently licensed exchanges that have successfully restored their payment gateways is not publicly available.
  • The specific technical implementation of the 'government API' for unblocking crypto-to-fiat traders mentioned in some reports requires verification.
  • The extent of enforcement on individual peer-to-peer trading outside of major exchanges remains unclear.

Detailed Explanation

Retail cryptocurrency trading in Iran is Allowed-Regulated under a strict licensing and control regime overseen by the Central Bank of Iran (CBI). The foundational regulatory shift occurred with the CBI's 'Policy and Regulatory Framework for Cryptocurrencies' in December 2024, which mandates licensing for exchanges, brokers, and custodians and places them under CBI supervision with rigorous Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) compliance and tax obligations. This framework grants the CBI extensive access to user data and transaction records, reflecting a pivot from a 'hands-off' approach to a 'control and tax' strategy. The primary regulator is the CBI, which holds sole authority over the cryptocurrency market. Key compliance requirements for licensed entities include strict KYC/AML procedures and adherence to tax obligations under the Law on Taxation of Speculation and Profiteering enacted in August 2025, which imposes capital gains tax on speculative assets including cryptocurrencies. The government actively utilizes cryptocurrency for import payments to bypass international sanctions, a practice supported by a requirement that licensed miners sell their coins to the CBI for this purpose, as established under the Cabinet Decree on Mining Regulation from August 2019. However, this state utility contrasts sharply with restrictions on retail use. Domestic payments using cryptocurrency are explicitly illegal, and access to fiat currency (Rial) on/off ramps is tightly controlled by the CBI through a government-controlled API, a measure intensified by the CBI Directive on Payment Gateways in January 2025 which ordered the closure of Rial gateways to control currency depreciation. Banking access for crypto exchanges remains volatile and subject to sudden CBI restrictions during currency crises, a concern rooted in a 2018 CBI ban that prohibits financial institutions from handling cryptocurrencies. Consequently, while international exchanges like Binance ban Iranian users due to sanctions, forcing reliance on domestic licensed platforms such as Nobitex or the use of VPNs and intermediaries, the overall environment is one of permitted but heavily surveilled and controlled retail trading, designed to harness crypto for state needs while suppressing retail capital flight.

Summary Points

Cryptocurrency Regulatory Analysis: Iran

I. Regulatory Status

  • Retail cryptocurrency trading is Allowed-Regulated under a strict licensing and control regime.
  • The Central Bank of Iran (CBI) is the sole regulatory authority.
  • The government employs a dual-track approach: embracing crypto for state utility (e.g., import payments) while heavily restricting retail capital flight.

II. Key Regulatory Bodies

  • Central Bank of Iran (CBI): The primary and sole regulator with extensive oversight and control over the cryptocurrency market, licensing, and fiat access.

III. Important Legislation

  • Policy and Regulatory Framework for Cryptocurrencies (CBI, December 2024): The core regulatory document mandating licensing for crypto exchanges, brokers, and custodians under CBI supervision, with emphasis on AML/CFT and tax compliance.
  • Law on Taxation of Speculation and Profiteering (Parliamentary Act, August 2025): Imposes capital gains tax on speculative assets, including cryptocurrencies.
  • CBI Directive on Payment Gateways (CBI Directive, January 2025): Ordered the closure of Rial payment gateways for crypto exchanges to control currency depreciation, requiring platforms to meet strict new licensing criteria.
  • Cabinet Decree on Mining Regulation (Cabinet Approval No. 58144, August 2019): Legalized cryptocurrency mining as an industrial activity subject to licensing by the Ministry of Industry, with electricity paid at export rates.
  • Bans financial institutions from handling cryptocurrencies (CBI, 2018): Prohibits banks and other financial institutions from engaging with cryptocurrencies due to AML/CFT concerns.

IV. Compliance Requirements

  • Licensing: Mandatory for cryptocurrency exchanges, brokers, and custodians to operate legally.
  • KYC/AML: Strict procedures are a central pillar of the regulatory framework for licensed entities.
  • Taxation: Capital gains tax on crypto trading is imposed under the Law on Taxation of Speculation and Profiteering (August 2025).
  • Mining Obligations: Licensed miners are required to sell their mined coins to the CBI for use in government import funding.

V. Notable Restrictions or Limitations

  • Fiat Access: Access to fiat currency (Rial) on/off ramps is tightly controlled by the CBI through a government-controlled API.
  • Domestic Payments: The use of cryptocurrency for domestic payments is explicitly banned and illegal.
  • Banking Volatility: Banking access for crypto exchanges is volatile and subject to sudden restrictions by the CBI during currency crises.
  • International Exchange Access: Major international exchanges (e.g., Binance) ban Iranian users due to sanctions, forcing reliance on domestic licensed platforms or the use of VPNs and intermediaries.
  • Advertising Ban: Advertising related to cryptocurrency mining is banned due to national energy concerns.

VI. Recent Developments or Notes

  • The December 2024 regulatory framework marked a significant pivot from a 'hands-off' approach to a 'control and tax' strategy, granting the CBI extensive access to user data.
  • The government's primary use case for cryptocurrency is to bypass international sanctions for import payments.
  • There are ongoing concerns about capital flight, money laundering, and tax evasion shaping regulatory actions.
  • The analysis reflects the situation as of late 2025.

Full Analysis Report

Retail Cryptocurrency Trading Status Report for Iran

Report Date: 26 December 2025

Subject: Retail_Trading_Status

Description: Assessment of whether citizens and natural residents in Iran are legally permitted to buy, sell, and hold cryptocurrencies. Description of the regulatory environment surrounding this activity (such as KYC/AML requirements imposed on platforms, public warnings issued).

1. Identified Status:

Allowed-Regulated

2. Detailed Explanation:

The legal status of retail cryptocurrency trading in Iran is Allowed-Regulated. The Central Bank of Iran (CBI) serves as the primary regulator, having established a formal licensing framework in December 2024. This framework mandates that cryptocurrency exchanges, brokers, and custodians obtain a license from the CBI and comply with strict AML/CFT regulations and tax obligations. The CBI's 'Policy and Regulatory Framework for Cryptocurrencies' provides the legal basis for regulated trading, emphasizing control, transparency, and tax compliance.

While the CBI bans the use of cryptocurrencies for domestic payments, individual holding and trading on licensed domestic platforms is permitted and regulated. The CBI requires extensive access to user data and transaction records. Access to fiat on/off ramps is controlled through a government-monitored API. The government simultaneously utilizes crypto for state-sanctioned purposes, such as funding imports with legally mined coins. Retail access to fiat is managed through this state-controlled channel. Licensed domestic exchanges, such as Nobitex, operate under CBI oversight and enforce KYC/AML procedures. Capital gains from crypto trading are subject to taxation under the Law on Taxation of Speculation and Profiteering (August 2025). The CBI has historically taken enforcement actions, such as shutting down Rial payment gateways for non-compliant exchanges, as seen in January 2025, to manage capital flight and currency stability.

3. Key Textual Excerpts from Sources:

  • Tehran Times (Dec 2024): "The Central Bank of Iran (CBI) recently approved a 'Policy and Regulatory Framework for Cryptocurrencies', reaffirming its role as the primary regulator."
  • The Block (Dec 2024): "The upcoming policies aim to support crypto traders to comply with local tax and anti-money laundering laws."
  • Lightspark Analysis (Sep 2025): "As of early 2025, the CBI has ordered the closure of rial payment gateways for exchanges, requiring them to obtain licenses."
  • Wallex (citing CBI regulations from Bahman 1397/Feb 2019): "Buying and selling cryptocurrency is not prohibited for Iranian users. Using cryptocurrencies as a payment method is prohibited. Cryptocurrencies can be bought, sold, and exchanged on exchanges that comply with regulations."
  • Abantether (May 2025): "Currently, the laws on buying and selling cryptocurrency in Iran are such that mere ownership and exchange of cryptocurrencies by natural persons for the purpose of investment or preserving asset value is not criminalized... However, there are important points: Lack of recognition as currency: The Central Bank of Iran has explicitly stated that it does not recognize cryptocurrencies as an official payment instrument within the country... Necessity of identity verification on domestic exchanges: Iranian online cryptocurrency exchanges are required to fully implement user identity verification (KYC) and comply with anti-money laundering (AML) regulations."

4. Direct Source Links:

  1. Tehran Times: https://www.tehrantimes.com/news/507360/Central-bank-approves-regulatory-framework-for-cryptocurrencies
  2. CBI Governor Statement: https://www.cbi.ir
  3. The Block: https://www.theblock.co/post/329876/iran-moves-to-regulate-crypto-instead-of-imposing-limits-report
  4. Lightspark: https://lightspark.com/is-crypto-legal-in-iran-regulations-compliance-in-2025
  5. Philomel Analysis (Dec 2025): https://philomel.org/iran-crypto-exchange-restrictions-2025
  6. Wallex: https://wallex.ir/blog/cryptocurrency-rules-in-iran/
  7. Abantether: https://abantether.com/blog/is-cryptocurrency-legal-in-iran/
  8. Arzinja: https://arzinja.info/mag/crypto-legal-status-in-iran/

Source Evidence

Primary and secondary sources cited in this analysis

"The Central Bank of Iran (CBI) recently approved a 'Policy and Regulatory Framework for Cryptocurrencies', reaffirming its role as the primary regulator."

"The framework emphasizes licensing crypto brokers and custodians under CBI supervision while ensuring compliance with anti-money laundering (AML) laws."

"The upcoming policies aim to support crypto traders to comply with local tax and anti-money laundering laws."

"As of early 2025, the CBI has ordered the closure of rial payment gateways for exchanges, requiring them to obtain licenses."

"In January 2025, the Central Bank of Iran shut down every rial payment channel connected to local crypto exchanges."

"خریدوفروش ارز دیجیتال برای کاربران ایرانی ممنوع نیست. استفاده از رمزارزها به‌عنوان یک روش پرداخت ممنوع است. ارزهای رمزنگاری شده در صرافی‌هایی که مقررات را رعایت کرده‌اند، قابل خرید و فروش و تبادل است."

"در حال حاضر، قوانین خرید و فروش ارز دیجیتال در ایران به گونه‌ای است که صرف مالکیت و مبادله رمزارزها توسط اشخاص حقیقی به قصد سرمایه‌گذاری یا حفظ ارزش دارایی، جرم‌انگاری نشده است... با این حال، نکات مهمی وجود دارد: عدم رسمیت به‌عنوان پول: بانک مرکزی ایران، به صراحت اعلام کرده که رمزارزها را به‌عنوان ابزار پرداخت رسمی در داخل کشور به رسمیت نمی‌شناسد... لزوم احراز هویت در صرافی‌های داخلی: صرافی‌های آنلاین ارز دیجیتال ایرانی، موظف به اجرای کامل فرآیند احراز هویت کاربران (KYC) و رعایت مقررات مبارزه با پولشویی (AML) هستند."

2025-05-18

"بانک مرکزی ایران استفاده از ارز دیجیتال برای پرداخت‌ها را ممنوع کرده است، اما هیچ قانونی برای ممنوعیت خرید و فروش یا نگه‌داری کریپتوکارنسی‌ها وجود ندارد. در نتیجه، کاربران می‌توانند رمزارزهای خود را خریداری و نگه‌داری کنند، اما نمی‌توانند از آن‌ها برای پرداخت کالا و خدمات استفاده کنند."

"معاملات ارزهای دیجیتال در ایران نه به‌طور کامل ممنوع و نه به صراحت مجاز اعلام شده است؛ و این وضعیت خاکستری زمینه‌ساز ابهام‌ها و اختلاف نظرهای بسیاری است. بانک مرکزی جمهوری اسلامی ایران به موجب اطلاعیه‌های متعددی تنها استفاده از ارز دیجیتال به‌عنوان وسیله‌ی پرداخت را ممنوع اعلام کرده است و ممنوعیتی در خصوص نگهداری، خرید و فروش و دیگر شرایط مربوط به آن اعمال نکرده است."

"با توجه به مخاطرات پیشگفته، ‌بانک مرکزی به هیچ عنوان فعالیت در حوزه رمزپول را توصیه نمی کند و مسئولیتی در قبال ضرر و زیان احتمالی کاربران ندارد."

Web Sources (9)

Sources discovered via web search grounding

Search queries used (5)
  • Is crypto trading legal in Iran for individuals 2025
  • Iran crypto payment ban status
  • Iran law on virtual assets 2024
  • Central Bank of Iran crypto exchange licensing status
  • Iran cryptocurrency retail trading regulation 2024 2025
lightspark.com

https://www.lightspark.com/knowledge/is-crypto-legal-in-iran

coinfomania.com

https://coinfomania.com/cryptocurrency-regulations-in-iran/

philomel.org

https://philomel.org/crypto-exchange-restrictions-for-iranian-citizens-in-2025-what-you-need-to-know

crystalintelligence.com

https://crystalintelligence.com/investigations/beyond-the-headlines-of-irans-crypto-usage/

ainvest.com

https://www.ainvest.com/news/central-bank-clamps-crypto-iranians-dodge-regulations-hedge-rial-freefall-2509/

tehrantimes.com

https://www.tehrantimes.com/news/507174/Central-bank-approves-regulatory-framework-for-cryptocurrencies

99bitcoins.com

https://99bitcoins.com/news/altcoins/iran-opts-to-regulate-cryptocurrency-instead-of-enforcing-restrictions/

amlwatcher.com

https://amlwatcher.com/news/the-central-bank-of-iran-approves-policy-and-regulatory-framework-for-cryptocurrencies/

trmlabs.com

https://www.trmlabs.com/resources/blog/irans-crypto-economy-in-2025-declining-volumes-rising-tensions-and-shifting-trust

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