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Bill to curb the Iran national cryptocurrency filed in U.S congress

Alan Muli

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A draft legislation designed to hinder Iran’s efforts to create a sovereign cryptocurrency has been introduced in the U.S. congress. The “Blocking Iran Illicit Finance Act” bans U.S. citizens and companies from all transactions and dealings in Iranian digital currency.

Filed in the House of Representatives this week, the draft law, is sponsored by a group of members led by Wisconsin republican Mike Gallagher. The main focus of the act, is to impose new restrictions with respect to Iranian Financial institutions and organizations providing services to Iranian banks. The authors of the bill have also proposed measures to prevent Iran from issuing its own digital coin.

Iranian Digital tokens banned

The draft law bans transactions and other dealings in any digital token or coin that can be identified as Iranian digital currency. The draft also introduces penalties against any U.S. citizen, corporate entities as well as foreign nationals and companies providing financial, material or technological support for the development of the Iranian digital currency sector.

The legal document details that all transactions and dealings in Iranian digital currency by a United States person or within the United States are prohibited. The measures include prohibiting the opening of a bank account and blocking any property transactions within the United States. Foreigners may also be denied visa or other entry documents to the U.S.

The republican representatives have tasked the Treasury with producing a report on the progress that the government of the Islamic republic has made in creating a sovereign cryptocurrency. The lawmakers also want an assessment of the state and non-state actors that are assisting the Iranians, including the governments of China, Russia, Venezuela and Turkey.

The introduction of the blocking Iran Illicit Finance Act comes after mounting reports that the country is advancing its plans to issue a national cryptocurrency backed by its fiat, the rial.

Cryptocurrency exchange platforms, in a bid to avoid breaching U.S. sanctions, have stopped offering crypto-services to Iranian residents.

 

 

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