Gold Trading Platforms Warn of Monopoly Risks Under New Government Directive

A new directive approved by Iran’s Cabinet to regulate online gold trading has sparked criticism among industry players, who warn that certain clauses - including restrictions on trading hours and centralized control over gold depositories - could stifle innovation and impose new operational bottlenecks on the growing digital gold market.

The government’s recently issued framework, which outlines the conditions for licensing and supervision of online gold platforms, has faced backlash over what experts describe as “unprecedented intervention” in a sector traditionally governed by trade unions. Critics argue that the directive introduces bureaucratic hurdles, particularly the requirement for Central Bank approval, bypassing the established role of the Iranian Chamber of Guilds.

Union Leaders: “An Unprecedented Move”

Reza Olfatnasab, head of the National Union of Online Businesses, told Digiato that the directive represents a major shift in regulatory practice:

“For the first time, a professional guild issue that should have been discussed and approved within the Chamber of Guilds has been directly reviewed and ratified by the Cabinet,” he said.

Olfatnasab noted that while the directive assigns licensing authority to his union, it also requires approval from the Central Bank and the Anti-Bureaucracy Board, a process he called legally questionable.

“We strongly oppose the Central Bank’s involvement. It sets a dangerous precedent in the licensing system. The Central Bank has never issued licenses for jewelry shops, and it shouldn’t interfere with digital gold platforms either,” he emphasized.

He added that most of the Union’s proposals were ignored during drafting:

“Only a small portion of our input was considered. We hope the upcoming Anti-Bureaucracy Board sessions will address these issues and make the necessary corrections.”

Industry Leaders Warn of Technical Bottlenecks

Executives from major online gold platforms -including Mili, Talasi, and WallGold - voiced similar concerns, warning that the new framework could cripple the market by introducing impractical technical and operational limits.

Mostafa Akrami, CEO of Mili, welcomed the government’s attempt to formalize online gold trading but warned against restrictive implementation:

“We support regulation that boosts trust and transparency, but this must be done through facilitation, not limitation,” he said. “Platforms like Mili already meet all legal standards, identity verification, audited vault storage, and transaction transparency. The directive should encourage innovation, not slow it down.”

Akrami criticized the lack of private-sector participation in drafting the directive:

“We were barely involved in the process. The final version doesn’t reflect the realities of digital operations. In today’s world, defining ‘working hours’ for an online platform is absurd, two-thirds of our transactions happen outside business hours.”

Mehdi Fadaei, CEO of Talasi, warned that limiting trading to vault operating hours “undermines the 24/7 nature of digital commerce.” He also pointed to technical vulnerabilities:

“If a single SMS verification or server link fails, the entire platform shuts down. Moreover, requiring 100% gold backing in banks means that any vault downtime instantly halts trading. It’s a fragile model.”

Fadaei argued that mandatory physical gold delivery within seven days contradicts the digital asset model and that forcing Central Bank oversight removes the union’s independence in regulating the industry.

“Legislation Without Real Participation”

Ali Miri, deputy CEO of WallGold, described the directive as “a double-edged sword”, offering transparency on one hand but introducing “deep structural flaws” on the other.

“Online gold platforms could help channel stored gold into production by acting as intermediaries under user authorization,” he explained. “But this potential is now blocked. Instead of encouraging creative models, the directive reduces platforms to rigid, state-controlled entities.”

Miri also criticized the proposed real-time monitoring system, which requires instant validation for every transaction:

“With millions of trades per second, such oversight is technically impossible. Any lag could paralyze the entire market. It creates a single point of failure, a regulatory chokehold rather than effective supervision.”

He further warned that defining limited trading hours for online markets reflects “a fundamental misunderstanding of the digital economy”:

“In global markets, gold trading platforms operate 24/7 to stabilize demand and prevent price shocks. Restricting activity will distort the market instead of calming it.”

Monopoly Concerns and Market Distortion

Miri also raised alarms over the directive’s monopoly risks, particularly the exclusive role given to Central Bank-approved vaults such as Bank Kargoshaei:

“Restricting depositories to one institution creates a dangerous monopoly. Other secure entities like the Commodity Exchange could also serve as vaults. Competition ensures resilience.”

He added that the directive’s requirement for limited “digital wallets” capped at three million tomans makes online gold investment impractical:

“When one gram of gold costs over 10 million tomans, such a cap blocks ordinary users. Expanding wallets isn’t even part of our business model, it’s an imposed burden that distracts from our core mission.”

Between Regulation and Regression

While officials argue that the directive aims to ensure transparency and consumer protection, industry experts warn it could unintentionally shut down the very platforms driving modernization in Iran’s gold market.
If enforced rigidly, they caution, the new rules could not only limit consumer access but also extinguish the innovative energy that helped transform Iran’s traditional gold trade into a digital ecosystem.