Iran bans banks from using cryptocurrencies

Tehran: Iran banned the use of bitcoin and other cryptocurrencies by banks and financial institutions on Monday amid ongoing debate over how best to regulate the technology.

"The use of bitcoin and other cryptocurrencies in all the country´s monetary and financial centres was banned," the central bank said in a statement overnight. It said the government´s money-laundering committee had taken the decision in late December and it was now being put into effect.

The ban came because "all cryptocurrencies have the capacity to be turned into a means for money-laundering and financing terrorism and in general can be turned into a means for transferring criminals´ money," it added. Many in Iran see great potential in digital currencies as a way to overcome problems related to international sanctions and difficulties facing the country´s ailing banks. Earlier this year, the country´s 36-year-old telecoms minister Mohammad-Javad Azari Jahromi set up a team to create Iran´s own cryptocurrency.