Iran has announced a new directive concerning stablecoin transactions, with the country dealing with the fall of its fiat currency, the rial. According to the new rules, stablecoin transactions will now be capped for individuals and firms amid the return of UN sanctions.
According to the statement, Iran has directed that annual purchases should not exceed $5,000 per person, with total holdings expected to remain at $10,000.
According to Asghar Abolhasani, secretary of the High Council, the decision was adopted during the Central Bank’s High Council session this week, and it will apply to all traders and users on licensed digital platforms.
In addition, he mentioned that the implementation period should not be more than the one-month transition period.
Iran sets new stablecoin purchase limit
Speaking to Iranian state TV, Abolhasani said those already holding stablecoins have been given a brief period to comply with the new directive. “From now on, the ceiling for purchasing stablecoins is set at $5,000 per user annually, and holdings cannot exceed $10,000,” Abolhasani said.
“The important point is that regarding stablecoins currently in possession, a maximum one-month transition period has been set, during which the authorized ceiling for holdings must be observed,” he added.
Stablecoins are digital assets pegged to traditional currencies, with the tokens in this case being tokens developed by Tether and pegged to the United States dollar (USDT); others include Circle’s USDC, with these assets available on different blockchains.
In Iran, USDT has become a lifeline for households and traders seeking to protect their savings from inflation or to move money abroad. This method offers them stability of the US dollar without the barriers of the formal banking system.
The new restriction comes as the rial has continued to collapse, hitting an all-time low of 1,136,500 against the US dollar on Saturday. The national currency is expected to continue its losing streak amid the looming threat of the renewal of UN sanctions and worsening public confidence in government controls.
Stablecoins like Tether have increased in popularity in the country since conflict broke out with the United States and Israel earlier this year. For many people, making these conversions has been the only way to preserve value.
Residents blame the government for their woes
The new cap restrictions are expected to affect thousands of small traders who have been making a living in crypto, with anticipation growing over the kind of penalties they could face if they can’t reduce their stablecoin holdings in time.
The central bank’s move mirrors past efforts to reduce demand and dependence on foreign currency during sharp market downturns. In earlier crises, authorities restricted access to dollars and gold in hopes of stabilizing the rial, with the measures having little effect.
Iran’s currency has steadily depreciated over the past decade, battered by sanctions, mismanagement, and inflation. In addition to its currency crisis, residents have also dealt with the energy crisis over the past few months.
As previously reported by Cryptopolitan, residents blamed the actions of crypto miners and their numerous operations in the country as the main source of the issues. The issue also caused a small number of vocal groups to take to the streets in vocal demonstrations against the government.
Residents have also blamed the government, accusing cartels led by the Khamenei regime of trying to make profits with scarce energy resources. The residents claimed that most of these activities are coming at a time when the country is going through several issues, highlighting the war.
Meanwhile, Iranian officials have claimed that most of the issues were a result of illegal miners and the country is taking proactive steps to curb their activities.
