The emergence of a new cryptocurrency market has provided new opportunities for investors to test their financial management capabilities; The market has now overtaken other traditional trades with the corona outbreak and has attracted the attention of many professional traders. “Immunity of cryptocurrencies from government manipulation” is perhaps one of the most important reasons for its growing popularity; A feature that has caused the Ramzarz trading market to hunt its audience very soon.
In Iran, a new wave of traders has entered this market; The wave that can now be traced from the records of Iranians in search engines. In contrast, financial market policymakers in Iran have survived this wave. The inevitable entry of this market into the country requires the development of mechanisms that, while protecting property rights and respecting the rules of free trade, provide trades for the benefit of traders. However, the set of policy-making behaviors shows that this market has not yet been accepted by policymakers.
Ciphers and tools to circumvent sanctions
Digital currencies cannot be tracked and blocked by any government or institution, and are therefore very good tools for circumventing international sanctions against Iran. However, this great good has been considered a threat by the government in Iran, and therefore activities in the field of cryptocurrencies have been banned for the people and allowed for economic rule. Although this legal discrimination may be effective in the short term and prevent new capital from entering the field of digital currencies, it should be noted that the attractiveness of investing in this market will eventually outweigh the bans and attract capital to this new market. Will continue.
Last year, news was published that the activities of exchange offices were banned in the field of cryptocurrencies; However, such plans not only failed to prevent the entry of capital into the market, but also led to another damage called capital flight from the country. While this new path could have facilitated the process of foreign exchange inflow into the country, but the continuation of coercive policies of policymakers with new phenomena, only led to the outflow of foreign exchange.
25 billion market
Currently, it is estimated that more than 5.1 million Iranians, amounting to 25,000 billion tomans of capital, have entered the digital currency market. At the same time, programming professionals are still working hard in this field, and therefore this field can be considered as a new platform for job creation. On the other hand, financial transfers in the field of economic and commercial activities in the field of digital currencies can be redefined to create new areas for Iran’s international trade. It should be noted that the liquidity in the cryptocurrency market, which can be considered as an economic opportunity, will become a threat if it enters other markets.
Ramzarz’s position in the financial markets
At the same time, policymakers call the digital currency market a competitor to Iran’s capital market to justify their unprofessional behavior. However, these two markets are practically not a threat to each other. According to capital market experts, stock exchanges and cryptocurrencies are two financial instruments with different functions, neither of which can ultimately overshadow each other. Therefore, isn’t it better for Iranian economic policymakers to recognize this new global market and instead of banning the activities of investors in this market, prepare the ground for the birth of a new market in the Iranian economy by designing appropriate mechanisms? ?
Ciphers and stock exchanges
Opposition to increasing cryptocurrency market penetration was initially justified under the pretext of “risk of money leaving the capital market.” However, capital market analysts have not felt such a risk, nor do they see the micro-liquidity in the stock market as a measure of entry into the digital currency market. Therefore, opposition to the cryptocurrency market has not been accepted in principle. An examination of the inflow and outflow of money in the capital market shows that the outflow of money is generally parked in the same market and in the form of funds or brokerage accounts, and a small amount of liquidity from the sale of shares is completely out of the capital market.
At the same time, the current problems of the capital market cannot be blamed on the cryptocurrency market. The causes of the market collapse in August of this year and the large financial losses of other shareholders are not hidden from anyone and this flawed trend can not be used as an excuse to ban investors from entering the cryptocurrency market. Capital market experts also believe that the cryptocurrency market is generally not considered a competitor to the capital market due to a different mechanism from other markets, but may even become a growing safe haven for stray capital if economic risks increase in other markets. The law that economic policymakers have drawn up to return to the Iranian economy.
Withdrawal of funds in case of negligence
The fact that economic policymakers should pay attention to is that now it is no longer possible to ignore the huge investment of 25,000 billion Tomans of Iranians in this field and by imposing restrictive laws such as the lack of services provided to exchange operators in this field, the way to enter The newborn market of ciphers closed. In particular, it should be noted that these prohibitions, rather than serving the country’s economy, lead domestic capital to international exchange offices, which have already left a bad record in dealing with Iranian capital.
Although these exchanges have a very reliable operation at the international level, they have adopted coercive policies in the face of Iranian users. Blocking the assets of Iranian users has been a common occurrence in these international exchanges for many years. Bainance and Bitrex exchange offices, as two international digital currency giants, have repeatedly destroyed the capital of Iranian users in recent years.
Bitrex also has a history of blocking the accounts of Iranian users for two years. Unfortunately, users who encounter problems resulting from sanctions policies in these exchanges are not able to legally review and pursue their complaints in practice. This process gradually becomes the outflow of capital from the country without its return so that even the owners of capital will no longer have access to it. However, if digital currency transactions are legalized in the country and money is transferred through domestic exchange offices, any possible problems can be pursued legally.
Unprofessional decisions in dealing with new phenomena in Iran continue while most of the world’s governments are regulating their regulations with this phenomenon. Banning new areas has always been the easiest way to deal with them.
A review of past experience shows that policymakers have always taken the first step with new tools to ban their sphere of activity and deal with it by force and police, without doing a thorough expert work on the performance and benefits of the new phenomenon.
This approach is now affecting the field of digital currencies as well. For example, Shaparak’s unprofessional decision to block the transactions of digital currency market participants can be considered. However, this type of approach has not been able to create a problem for the accounts of users who have already invested their capital in this market, because the original capital of users is reserved by exchange offices and these exchange offices guarantee the return of this capital.
The customers of these exchanges can transfer their capital to any destination whenever they want. And how much better that this destination is the domestic economy, which will also be achieved if the expert and reasonable softness of economic policy makers. Also, Ramzarz to Ramzarz exchange market is still active and it is not possible for any institution in any country to block this market. Given that this market is international and very active, domestic exchange offices will not have a problem to provide capital to their users, because in exchange for Iranian sellers, international buyers are ready to provide this capital.
At the same time, it should be noted that according to the explicit text of the Constitution of the Islamic Republic of Iran, carrying out any activity is not a “crime” unless the law provides for a penalty or a fine for doing so. Accordingly, and due to the lack of penalties or fines for operating in this field, it should be said that the purchase, storage and sale of digital currencies is not prohibited. Needless to say, it is not possible to deal legally with activists in this field legally until the laws related to crime and punishment are enacted.
Unfortunately, the legislature and regulator in Iran, with their procrastination and silence, have created an uncertain legal environment for digital currency activists. It should be emphasized that the absence of a law in this regard is not a sign of illegality but a sign of the legislator’s procrastination. However, it is still hoped that policymakers will have a fairer view of this market with a better understanding of the new realm of digital currencies and their benefits to the Iranian economy, and will be more comprehensive in drafting the law.