Following the urgent request of the Speaker of the Majles to determine the assignment of digital currencies and to take action to prevent the provision of payment gateways, the Fintech Association in a letter to the Speaker of the Islamic Consultative Assembly and the Governor of the Central Bank reminded the need for correct decision in this area.
According to Digital Currency, the letter points to the devastating consequences of hasty decisions, and factors such as the improper translation of the “currency code” of the new asset class as reasons for appointing the wrong trustee.
The letter states:
Considering the concerns that are raised in the society about cryptocurrencies and also the recent letter of Dr. Qalibaf dated May 12, 1400 which was reflected in the media in this regard, the Fintech Association of Iran considers it necessary to make the right decisions in this area to promote the country. Note.
A) Blockchain and cryptocurrency technology is an emerging phenomenon that can bring opportunities and threats to society, and this issue has been rightly mentioned in the above letter. But a negative approach to this activity is the simplest and not necessarily the most correct option, and not allowing businesses to operate as a clearing of the problem and thus the country is deprived of the capacity of this area and face the consequences of its undergrounding for the country’s economy.
B) Timely decision-making is one of the most important factors in good governance for society, and therefore, just as procrastination in decision-making will be harmful, hasty and unprofessional decisions that result from non-interaction with the body and industry activists can be just as destructive and Be harmful. As this concern has been rightly seen in Dr. Qalibaf’s letter, in many countries, this area has not yet been fully legislated and they are examining the dimensions and better understanding and thus making the right decision against this technology. .
C) Due to inappropriate translations of specialized terms in this field, such as “currency code” or “currency code exchange”, the legislator in this field may be mistakenly considered the only central bank, if a comprehensive review and correct decision in this area. In particular, it requires the presence of various institutions and the participation of activists in this field in order to reach a comprehensive and desirable decision, and pressuring an institution such as the central bank to address all concerns is unlikely to yield optimal results.
D) Shaparak in a letter dated March 3, 2017 to the CEOs of paying companies who are also members of this association, activity Sell currency code Declared contrary to the laws of the Islamic Republic of Iran and the requirements and laws of the Central Bank to prevent the provision of services to this category of businesses. It is worth mentioning that the activists’ pursuits of this association have not reached any clause or comment on the illegality of the sale of cryptocurrencies. It is also specified that the use of currency codes in exchanges (meaning the use of currency codes to buy or sell goods or services) inside the country is not allowed, which is in line with the announcement of the Central Bank dated July 10, 2009 regarding currency codes. Therefore, in a letter dated March 10, 2017, this association asked Shaparak to study the legal basis of this issue more closely.
E) The country’s youth have been able to benefit from a technology and class, despite the oppressive and one-sided sanctions of Western governments, by working around the clock and setting an example in the conditions of unequal economic war and the problems caused by the epidemic of Corona and the problems it has created for economic activity. Provide global assets to the community and cover the risks of using foreign services due to the blockade of assets to a very good extent for the people, which is a matter of great pride and in line with the country’s macro policies to develop important domestic services. Therefore, decisions made without interaction with activists in this field and behind closed doors and in a negative way can destroy the unique potential that has been created for the country overnight and the bitter experiences that we have witnessed in similar cases such as social networks or messengers. To be repeated with the wrong decisions of domestic services that could compete with similar foreign services.
Finally, by confirming the concerns that are properly expressed by regulatory bodies such as the Islamic Consultative Assembly and the Central Bank about this new technology, there are definitely expert solutions to these concerns, and the Fintech Association requests the Central Bank and the Islamic Consultative Assembly to establish a working group with institutions. “It is relevant and especially with the presence of activists in this field to make expert decisions at the appropriate time, and welcomes attending this working group and holding meetings with the aim of conducting expert work and providing information and statistics, and declares its readiness.”
Read the full text of the letter from this link.