Iran Ranks Among Top Five Countries in Bitcoin Ownership as Regulation Advances
Key takeaways
- Iran is one of the top five countries in Bitcoin & altcoin ownership when measured by the percentage of its hodler population.
- A recent seminar at the Tehran Securities Exchange (TSE) proposed that Iran should enhance its economy by integrating crypto to its economy.
- Iran has high levels of cryptocurrency adoption and accounts for nearly 5% of global Bitcoin mining.
- While Iran plans to introduce a novel regulatory framework for crypto, various organizations accuse the government of not stopping terrorism and its moneyflow through crypto.
Iran has been experiencing significant growth in its cryptocurrency milieu, positioning itself among the world’s top five nations in Bitcoin ownership when measured by the percentage of population. As of the latest data, approximately 12 million Iranian citizens own digital assets, which is equivalent to 13.5% of the country’s population.
The growth has been confirmed by the speakers at the cryptocurrency-related seminar held by Tehran Securities Exchange (TSE) on Tuesday, who intend to launch new plans to merge the conventional capital market and the cryptocurrency market. Titled as “Securities Exchanges in the Cryptocurrencies Era; Confrontation or Convergence?”, the seminar witnessed the participation of Tehran Securities Exchange’s CEO, former CEO, and the Research and Development director.
Why Iran Has One of The Highest Levels of Bitcoin Holders?
Iran has one of the highest levels of cryptocurrency adoption relative to its population, primarily due to the challenges the country’s traditional economy faces. Most of the citizens in Iran resort to Bitcoin and stablecoins due to the fluctuations and severe inflation the country faces. In 2024, Iran’s Rial lost 37% of its value against the U.S. dollar, forcing people to move towards an alternative economy. However, the ongoing developments signal that Iran will likely stabilize the economy in the near future.
In addition, Iran makes a nearly 5% contribution to the global mining power. The government has encouraged legal Bitcoin mining since 2019, and it is among the cheapest places to mine Bitcoin. While it could cost around $1,320 to mine one Bitcoin in Iran, the cost in the United States is $102,260.
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Iran Emphasizes Responsible Crypto Innovation and Adoption
Dr. Mahmoud Goudarzi, the Chief Executive Officer (CEO) and spokesperson of the Tehran Securities Exchange (TSE), stated at the seminar that TSE is aiming for a responsible and professional approach to innovation by integrating crypto. “The capital market’s entry into the crypto asset class should be carried out through a responsible approach – grounded in transparency and risk management and to safeguard investor confidence,” he added.
The speakers together emphasized the importance of a clear regulatory and conceptual framework for digital assets in Iran, which will ultimately make crypto a viable and value-adding component of Iran’s capital market ecosystem in a regulated way. The country aims to sustain its position among the top holders, which includes the United Arab Emirates, Vietnam, and the United States.
Iran’s Crypto Industry to Begin Regulatory Reform Amid Terrorism Links
While the Iranian government has been trying to upgrade its crypto regulations for years, various international regulatory authorities accuse it of not stopping terrorist activities that use crypto as a means for transactions.
There were various reports that Iran’s crypto industry is closely related to terrorism, and organizations like the Islamic Revolutionary Guard Corps (IRGC) control a significant portion of mining infrastructure. IRGC was identified as a terrorist organization by multiple nations, with the latest being Australia. The Ministry of Foreign Affairs of Australia today designated the IRGC as a state sponsor of terrorism.
In addition, various victims of Hamas’s October 7, 2023, atrocities in Israel have filed a lawsuit against Binance, accusing the exchange of having consciously helped multiple terrorist groups. Apart from Hamas, the organizations in the lawsuit include the IRGC, and it alleges that the firm knowingly sent and received $1 billion to and from accounts and wallets controlled by the organizations responsible for the October 7 attacks. According to Israel’s National Bureau for Counter Terror Financing, 187 crypto addresses that aid global terrorism are linked to the IRGC.
With the convergence between the capital market and the digital economy in Iran, we will likely witness the arrival of new regulatory frameworks that could stop terrorist funding, counteract inflation, and provide new business and job opportunities.
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