Sunday , September 25 2022

Iran, Venezuela and Russia try to evade national criptocracy sanctions CriptoNoticias


World governments have recognized over the past two years the importance of decentralized cryptographic and cryptocrat systems, as it is increasingly difficult to ignore the Bitcoin-led ecosystem.

Some countries have adopted strategies to develop national blocks, while others have had an interest in the decentralized nature of cryptoactives as a possible way to bypass dependence on the traditional financial system. The governments of Iran, Russia and Venezuela, on which there are economic sanctions in several countries, have started the projects to release their own national cryptocurrency.


The Islamic Republic of Iran, strongly sanctioned in recent weeks by the US government, reported a few months ago its intentions to launch a national criptocurrency. In this announcement made in July this year, the Iranian Management and Investment Division said the goal is to facilitate the "money transfer to any part of the world" as a way to deal with imposed sanctions by the administration of Donald Trump.

The proposal of an "endogenous" cryptocurrency is led by the Central Bank of the country and the Chair of the Technology and Scientific Affairs of the Presidency. None of these two government entities have spoken about the algorithm, mines, or consensus features that I propose to launch. However, a confidential document ensures that Iran's currency encryption will be based on the Hyperledger Fabric paper block and will not be degraded.

Fit this document concerned a local media through Saeed Mahdiun, Director of Computing Services Corporations, it is predicted that cryptocurrency functions as a "interbank payment and payment instrument" and later as a "small payment instrument in the country".

The data so far can be inferred that, like other crypto-national projects, the Iranian token will have a centralized character. Similarly, it is not known how the release of this crypto-type would help the local government precisely to evade the financial sanctions of the United States.

The US Treasury Department, through the Financial Crime Control Network (FINCEN), warned that Iran uses cryptocracy to evade American economic sanctions and "bother" the US financial system.

In this case, FinCEN has published a document of 19 pages to "help financial institutions detect" and to report "potential illegal transactions related to Iran". These measures are based on the Trump administration's view that the Iranian regime is a threat to the US financial system.

Also within Iran, the regulatory landscape is confusing because mine extraction through encryption is recognized as activity within the territory, at the same time as bitstream trading is prohibited.

Recall that since April this year, the Central Bank of Iran (CBI) has banned the use of the bit law as a money laundering tool. This has led to the loss of bank support by national exchanges, as all regulated financial entities are banned from processing cryptocracy-related transactions.

The ban on trade has not eliminated the bitcoin market in Iranian reality. Bitcoins are still traded on peer-to-peer platforms, such as LocalBitcoins, which still help the Iranians to mitigating high inflation rates of the local economy. However, the new round of sanctions imposed on Iran has affected the encryption market.

in November 7 Binance and Bittrex exchange offices ceased to provide exchange services to Iranian citizens. According to Sephr Mohammadi, President of the Iranian Block Community, the decision of these exchange houses – and others he did not mention – severely restricts the crypto-market in that country.


Thinking of a national cryptocurrency as "a useful tool"In order to avoid financial penalties imposed by the European Union and the United States, Russia proposed the creation of a national cryptocurrency for two years.

Temporarily call as I criptorublo, the encryption of the Russian economy is intended as a way for Russia to accept payments with its trading partners and to diminish the influence of the United States on its economy.

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