Central Bank Asserts Sole Authority Over Crypto Regulation in Iran

In a strongly worded statement issued in response to recent comments by Ehsan Chitsaz, Deputy for ICT Development Policy and Planning, Iran’s Central Bank (CBI) has reaffirmed its position as the country’s sole policymaker and licensing authority in the crypto regulation sector.

The bank rejected what it called a "technology-centric" view of crypto assets, asserting that cryptocurrencies effectively function as money, serving as tools for payment and value exchange — functions that, it argues, fall squarely within its monetary and regulatory jurisdiction.

Chitsaz had previously claimed that the Central Bank’s authority extends only to Central Bank Digital Currencies (CBDCs), and that it cannot singlehandedly regulate the entire crypto ecosystem. According to him, cryptocurrencies encompass not only financial but also technological, market-driven, and legal dimensions. Ignoring these aspects, he warned, could stifle innovation in Iran’s digital economy.

In its rebuttal, the Central Bank cited a February 2025 directive from the President to the bank’s governor, as well as the Central Bank Law passed in June 2023, emphasizing that no other entity — including the Ministry of ICT — holds policymaking or licensing powers in this domain.

"Although crypto assets are built on modern technologies," the statement reads, "their use as instruments of payment and value storage places them under the Central Bank’s monetary and foreign exchange responsibilities." The bank warned that treating crypto merely as a tech issue is a "strategic error" that could fragment regulatory oversight and lead to institutional conflicts.

The statement also pointed to international precedents, noting that in most jurisdictions — including the European Union, the UK, and Singapore — it is the financial regulator or central bank that defines the crypto policy framework, with tech bodies serving only in advisory roles.

The Central Bank voiced concern over proposals to hand crypto oversight to ministries like ICT or Industry, labeling such suggestions "dangerous and irresponsible." The bank argued that while a diversity of stakeholders is important, it must not lead to fragmented decision-making. Instead, regulatory governance should be anchored in a single authoritative institution working in coordination with others.

Elsewhere in the statement, the Central Bank pushed back against interpretations that confine its role to managing the CBDC. It underscored its broader mandate, which includes overseeing non-sovereign cryptocurrencies, combating terror financing, and maintaining the country’s monetary stability.

While the bank welcomed initiatives like the proposed User Data Rights Charter, it warned that such efforts must not become a pretext for shifting monetary regulation to non-economic entities. The Central Bank stressed that safeguarding user privacy must align with national frameworks for anti-money laundering and beneficiary transparency — responsibilities that lie with financial and judicial institutions, not just tech platforms.

Finally, the statement noted that public outreach on crypto-related regulatory requirements began months ago. Since then, 61 businesses have secured preliminary conditional approvals by agreeing to the Central Bank’s terms. As a result, their payment gateways have also been reactivated.