An eerie calm has fallen on the cryptocurrency space following the tragic deaths of Iranian President Ebrahim Raisi and Foreign Minister in a helicopter crash on Sunday evening, with Lee predicting a significant impact on the country’s cryptocurrency ecosystem.
Iran, seen as a countervailing force in the Middle East, has invested heavily in the crypto space, with statistics predicting that cryptocurrency revenue will grow by 14.47% from 2024 to 2028. Recently, Iran and Russia teamed up to launch the "BRICS" digital currency. Western countries - the United States, to be precise - accuse Iran of circumventing sanctions through cryptocurrency trade.
On Sunday evening, news of the helicopter crash emerged, following which Iranian President Raisi and Iranian Foreign Minister Hossein Amirabdollahian, along with the helicopter crew, were missing. On Monday morning, world leaders, including Indian Prime Minister Narendra Modi, expressed their condolences while announcing the confirmed reports of their deaths.
The death of the Iranian president is bound to have global political and economic repercussions, and the cryptocurrency industry is expected to face turbulence in the future.
Iran’s Current Stance on Cryptocurrencies
Iran has recognized cryptocurrency mining as a legal industry and has introduced regulations for existing mining operations since 2018. A Reuters report shows that Iran earns nearly $1 billion per year in cryptocurrency mining, which accounts for 4.5% of the total Bitcoin mining. Mining revenue is used to mitigate the impact of sanctions and trade embargoes against Iran. As of 2024, Iran has shown an active and rapid stance on cryptocurrency regulation. The Iranian regime has approved a set of regulations for cryptocurrency trading, which may allow for the bypassing of international sanctions. This decision has raised global concerns about the possible impact of sanctions enforcement.
Iran has also legalized the use of cryptocurrencies for imports, thereby bypassing the dollar-dominated global financial system. This shift toward digital currencies could continue or accelerate, depending on the direction the incoming new leadership decides to take.
Cryptocurrency bypasses sanctions on Iran
Iran has increasingly used cryptocurrencies as a means to counter international sanctions imposed by the United States and its allies. Sanctions and embargoes have primarily restricted Iran’s access to the global financial system. The United States and its allies have repeatedly accused Iran of using U.S. trading platforms to trade cryptocurrencies despite sanctions. Iran has used Bitcoin mining operations and other cryptocurrency activities to mitigate the impact of sanctions.
Future courses of action
In the global financial markets, the death of a prominent Iranian figure could also affect global investment trends, especially commodities such as oil and precious metals, which could indirectly affect the cryptocurrency market due to its increasing correlation with the broader financial markets.
Iran’s new leadership, their stance on cryptocurrency usage in the face of sanctions, and the global geopolitical response will play a crucial role in shaping the future of cryptocurrency both within Iran and in the global financial landscape.
Additionally, Iran’s National Cyberspace Center has prepared a draft of a state-backed cryptocurrency project, indicating that Iran is moving towards introducing a national digital currency. The project is designed to facilitate international money transfers and potentially circumvent challenges posed by U.S. sanctions.
Until the next president makes a commitment, one can make as much speculation as one wants about the state of Iran’s cryptocurrency industry. However, most of Iran’s leadership is pulling in the same direction, hoping to strengthen the economy. Moreover, they are well aware that only cryptocurrency can provide them with access to global markets without interference from competitors such as the United States.
#BTC走势分析 #山寨币热点 #5月市场关键事件 #ETH #BTC
Bull market spot, don’t know what the ambush is, click on the avatar to follow and read my pinned article. My bull market strategy deployment is shared with all fans free of charge, it is real and effective.
It’s still the same. I need fans and you need references, so strategies are shared with fans for free.
