Will Re-Ignited U.S. Sanctions on Iran Drive the Country to Cryptocurrency?
Will Re-Ignited U.S. Sanctions on Iran Drive the Country to Cryptocurrency?
For a technological innovation that ceased to exist a decade ago, the relationship between geo-political events and cryptocurrencies is somewhat uncanny. Whether it’s Venezuela and their controversial Petro Coin, the Marshall Islands installing a legislative framework for the issuance of their own digital tender or the North Korean regime utilizing blockchain technology to fraudulently raise capital – more and more nations are in some way looking at the digital phenomenon to move away from the traditional monetary system.
Next in line – as per a recent guidance notice issued by FinCen – the U.S. based enforcement agency responsible for financial intelligence, could be Iran. In response to Donald Trump’s decision to re-distribute international sanctions on the nation, the report believes that the Iranian government may attempt to use cryptocurrencies as a means to circumvent the embargo.
Within the notice, the financial intelligence unit advise third party cryptocurrency exchanges to take caution with Iran’s potential attempt to exploit the international financial markets, including that of the cryptocurrency markets.
In a rather strong approach, FinCen allege that if U.S. based exchanges fail to thoroughly review transactions that are potentially linked to Iran, then it could assist the regime in their quest to generate revenues that support a range of unsavoury actions. This includes human right abuses, the development of an ongoing missile program and funding terrorist organizations.
FinCen first made reference to Iran’s involvement in cryptocurrencies back in 2013 and estimates that the nation facilitates Bitcoin transactions to the value of just under $4 million per year. Although the agency recognize that this figure is minute in comparison to other jurisdictions, they are still concerned, insofar that the funds have the potential to end up in the wrong hands.
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