Iran’s cyberspace authority, the High Council of Cyberspace (HCC), has claimed that it supports any move to regulate the use of digital currencies like Bitcoin in the country’s jurisdiction. The council has also reiterated the importance of creating and following laws in the country.

Based on a report by Irani newspaper Financial Tribune, HCC Secretary Abolhassan Firouzabadi stated that they welcome the regulation of Bitcoin and other virtual currencies and following the rules is a must.

"We welcome Bitcoin, but we must have regulations for Bitcoin and any other digital currency ... following the rules is a must."

State of the cryptocurrency market in Iran

Bitcoin and other digital currencies are used for various purposes in Iran despite the lack of laws to regulate their use.

According to Firouzabadi, the virtual currencies are used in the country in different transactions like payments, trading and mining. He added that there are already mechanisms that are being implemented by the responsible agencies like the central bank to control and supervise the supply of digital currencies across the country.

"Mechanisms of control and supervision over the supply of cryptocurrencies are being implemented through the collaboration of the central bank and related entities, but the people must be aware of their risks and dangers on the demand side."

Firouzabadi further clarified that the HCC and the Central Bank of Iran are cooperating in conducting a study on the cryptocurrencies amidst their recent price increases. He added that the process will continue until a definite decision on the issue is agreed upon.

Meanwhile, the central bank’s Deputy Director of New Technologies, Naser Hakimi, has recently issued a public warning regarding the risks over the use of Bitcoin and other virtual currencies. He also cautioned investors that they are putting their capital at risk if they invest in them.