While the Central Bank of Iran issues a new ban on cryptocurrencies, a Chinese state bank restricts transactions with them. The news is better in India as the National Payments Corporation refused to ban the trading of Bitcoin.
Bitcoin (BTC) and the cryptocurrency market lead a new bullish cycle as governments tighten their regulations. A Hong Kong commercial bank recently issued a ban on Bitcoin at the same time that the Central Bank of Iran made an announcement.
The Central Bank of Iran Bans the Trading of Bitcoin Mined Abroad
In recent days, the Central Bank of Iran (CBI) announced that it will ban the trading of Bitcoin and other cryptocurrencies mined in other countries. Attorney Fatameh Fanninzadeh, a consultant in blockchain technology, believes that the measure is aimed at “stopping the flight of capital.”
On her Twitter account, she said that there are already cryptocurrency regulations in Iran. She noted that the rules seek to promote the “aggressive export” of mined cryptocurrencies in the country. They are trying to “encourage mining and counteract capital flight” in the face of the depreciation of the local fiat currency.
The Iranian rial (IRR) has depreciated significantly against the US dollar in the last year. For that reason, it is no surprise that the monetary authority takes measures to protect the economy of that Middle Eastern country. However, the new CBI policy seeks to treat Bitcoin mining and trading as ordinary commodity-related activities.
A State Bank of China Limits Bitcoin Transactions on Its Customers’ Accounts
In recent days, Hong Kong commercial bank CITIC Bank banned its customers from trading Bitcoin on their accounts. Local media said that the measure is intended to “maintain the status of legal currency and prevent risks of money laundering.”
State-owned CITIC Group now limits the use of its customers’ accounts to trade cryptocurrencies. In other words, the bank’s customers will not be able to conduct commercial activities related to cryptocurrencies.
The government of China does not prohibit Bitcoin transactions between individuals. However, some local banks have decided to restrict cryptocurrency-related movements claiming the prevention of money laundering. CITIC Bank said that banks have the right to suspend transactions on the accounts and even cancel them.
An Indian Agency Refuses to Ban the Trading of Bitcoin
An organization attached to the Reserve Bank of India (RBI) recently decided not to ban cryptocurrency trading. Instead, it will allow banks to decide whether or not to apply the restrictions.
The National Payments Corporation of India (NPCI) is a retail payment system belonging to the central bank. This agency has left it to commercial banks to decide whether or not to allow their customers to make and receive payments in cryptocurrencies.
The NPCI recently said that banks should consult with their legal and compliance departments on whether to block such transactions.
This happens when only a few banks have blocked their customers’ cryptocurrency accounts. Until now, several banks have included traders on the blacklist of those who buy or sell these assets.
By Alexander Salazar
