However, the local crypto community in Iran believes that the ban will not affect them and some exchanges continue to operate normally.

Banned by Central Bank

The Central Bank of Iran (CBI) has issued a statement on Monday banning the use of cryptocurrencies including bitcoin by banks and financial institutions. This announcement came "amid ongoing debate over how best to regulate the technology," the AFP elaborated.

According to the CBI, "the government's money laundering committee had taken the decision in late December and it was now being put into effect," the news outlet conveyed and quoted the central bank explaining:

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.