Jahandar also believes that excluding users from any country due to political reasons runs counter to the very decentralized nature of bitcoin. Related Articles. However, your options to sell BTC depend on the country you are based in.
US banking sanctions against Iran
Due to Bitcoin and other cryptocurrencies price, continuing its ascending buh over recent months and surpassing the prices, everyone considered a dream; It was not a surprise for Bitcoin to appear on the news every now and. Therefore, it was not so long before it came appealing to public eye and became some sort of financial pop culture. Consequently, there has been an unprecedented increase in in global cryptocurrency trading volume ccan the world. No matter which country you reside in, there is so much buzz going on around cryptocurrencies at the moment. With bitcoin reappearing in news every week and celebrities embracing cryptos, bitcoin and ii are not just for geeks anymore. They have truly attracted the attention of ordinary people and non-geek investors.
Bitcoin price
LocalBitcoins has officially shut off service for Iran-based users, a move that follows weeks of rising rial trading volumes on the platform. News of the move first circulated across local language Telegram channels earlier this week that the exchange had blocked Iranians. Users reported encountering problems in posting new trades and updating previous ones on the website. According to Iranian users, the website was also open to reviewing local bank account documents to resolve potential problems, signaling that they have advisors familiar with the largely isolated Iranian banking system. Moreover, LocalBitcoins was trusted by Iran-based bitcoin users because it holds funds in escrow until both sides have given final confirmation, thereby ensuring transaction safety and lowering fraud. For instance, you can barely find two bitcoins for sale in any given day.
Bitcoin Price
Due to Bitcoin and other cryptocurrencies price, continuing its ascending trajectory over recent months and surpassing the prices, everyone considered a dream; It was not a surprise for Bitcoin to appear on the news every now and. Therefore, it was not so long before it came appealing to public eye and became some sort of financial pop culture.
Consequently, there has been an unprecedented increase in in global cryptocurrency trading volume throughout the world. No matter which country you reside in, there is so much buzz going on around cryptocurrencies at the moment. With bitcoin reappearing in news every week and celebrities embracing cryptos, bitcoin and cryptocurrencies are not just for geeks anymore. They have truly attracted the attention of ordinary people and non-geek investors. In fact some of its major investors come from CEOs and men of business who considered cryptocurrencies a joke just few years ago.
Iran is not different from other countries on this matter. In fact, with Iranian Rial IRR declining its value to US dollar every year, interest in investing in other currencies continues to rise among Iranian people.
For this reason, they are gaining a lot of popularity in the country. Iran is financially isolated from the global market. They also cannot earn directly in Dollars or do global trades such as investing in global stocks market, etc…. Considering the mentioned reasons, it seems natural for cryptocurrencies to take over in Iran, more than everywhere.
Cryptocurrencies seem to be the real winners in such situation. The nature of cryptocurrencies like bitcoin has prevented governments and global banking systems to impose direct control over. This has made cryptocurrencies a very appealing asset in Iran. I remember when I just wanted to start investing in bitcoin two years ago, I began investigating all the official exchanges in Ferdowsi street.
After lots of searching I found a few exchanges which at least knew what bitcoin. To be more precise, up until now Iran central bank has neither accepted nor rejected cryptocurrencies. This void in regulation has turned Iran a black market for cryptocurrencies. Licensed, certified and physical exchanges cannot simply trade cryptocurrencies.
Enamad is the single most important certificate for Iranian online businesses. This certificate which has a rating system embedded in itself 1 to 5 starsguarantees the legitimacy of the online business and assures users they are safe.
Websites having this certificate, have formerly provided all the necessary information to be traceable and refundable in case something goes wrong fraud for instance. Interestingly, none of Iranian cryptocurrency exchange websites have obtained Enamad. Despite the fact that some of these websites have Enamad, their certificate has been issued for their other activities and branches western union, issuing PayPal, Visa, MasterCard.
Currently there are 5 methods which you can trade cryptocurrencies in Iran. Each of them has their own merits and demerits. First, they will be introduced in the table below and then each one is discussed in details. The anti-scam Escrow system in these websites guarantees trading assurance. Iranian cryptocurrency exchanges are completely different from the most well-known cryptocurrency exchanges.
Both in their nature and the way they operate. Iranian exchanges, on the other hand, act quite different. There is no trading between users and there are no provided wallets to keep users digital assets.
These Iranian websites, first buy cryptocurrencies from global exchanges via PayPal. They even buy cryptocurrencies at much lower prices compared to their sale price and sell them on much higher prices to other users.
Basically, you could say they are just dealers and it is totally true. As you can probably see, they are the easiest way to get your hands on cryptocurrencies in Iran, but not definitely the best way. Another downside to this business model is the fact that the cryptocurrency supply is heavily dependent on exchanges.
They are the ones who buy new cryptocurrencies from the global market and inject it to Iranian markets. This has caused a lot of shortenings. Whereas in global exchanges, these are the people who control the flow of cryptocurrencies.
A few years ago, there were barely a couple of online cryptocurrency exchanges in Iran, with very low amounts of supply. But after the cryptocurrency going mainstream for the past couple of years, there are new cryptocurrency exchanges popping up every week in Iran. Of course with much more demand they now provide more supply than before although still not enough supply to meet the current demand.
Perhaps the biggest advantage of trading though these websites is the ease and convenience of sending and receiving assets. The most widely accepted online payment method is paying by bank debit cards and this is how most of these websites operate.
They are considered the fastest and the easiest method for buying cryptocurrencies. And the reason behind that is they use online payment gateways which can i buy bitcoin in iran the fastest and the easiest method in Iran. Logos of the biggest and the most reputable banks in Iran, issuing debit cards for online purchases. Having an online debit card payment gateway for websites in Iran is a kind of certificate for being a legitimate business.
Trust: the only source of trust for these websites is through reading reviews in Digiarz. There is always a need for brave users to try new websites for the first time and share their experience with. Hoarding: a lot of these websites have been accused of hoarding their assets when bitcoin prices are low, and selling them later at higher prices.
Black market: Because of the limited supply of cryptocurrencies in Iran, when most websites run out of their bitcoin supplies, the few remaining websites offer their bitcoin on even much higher rates than.
Abusing buyers in every way they. Selling high, buying low: as previously mentioned one of their main sources of income is buying at much lower rates from their users compared to real bitcoin USD value and selling them at much higher rates to their other users. However, there are some of them who sell top 10 cryptocurrencies based on coinmarketcap.
Of course this is not much of a big problem compared to other problems mentioned. But add to that, the volatility of global exchanges banning Iranian accounts and you have a big issue at your hand. Bittrexfor instance was one the biggest ones to suddenly ban all Iranian accounts without any previous notice.
Requiring of registering with a lot of official national certificates KYC policies :. Although KYC policies require most cryptocurrency exchanges throughout the world to receive national IDs and other verification documents, Iranian exchanges are very hard on this matter. This highly prevents money laundry and all sorts of illegal financial activities. As previously mentioned, without issuance of the Enamad for these websites, there is really no assurance for their customers.
In these cases there is legally nothing you can do about it. Because you attended in a business which is not covered in law in the first place.
Most of biggest cryptocurrency exchanges require their users to provide authentications documents National IDs and …. The aforementioned middlemen in Iran, actually hand you a lot of third party certification documents to help you along the process of verification. Trading with other users in the exchanges, unlike Iranian Exchanges which in fact are only dealers.
Much more cryptocurrency supply: As longs as there are users who want to sell their bitcoins, there will be enough bitcoins for everyone to get their hands on. Providing wallets for different cryptocurrencies none of Iranian exchanges offer this service. Hardships and complications in verifying accounts for these exchanges for Iranian users.
If you factor out a few big hack incidents for exchanges like Mt. Gox or Coincheck, since most of these exchanges use cold storage wallets to store their users assets, they are considered as the most secure way to trade your digital assets. But it is heavily recommended to not store your assets in them for long periods. However for Iranian people, risks of getting caught using fake verified exchange or PayPal accounts always remains relevant.
If they caught all their investments will be blocked and perished, with no legal right to take them. Despite the fact that these Russian and Chinese payment services still require middlemen to create verified accounts and deposit, they are still a very popular option in Iran, among pro traders. The reason behind that is the fact that, they are at least so much more feasible than Iranian cryptocurrency exchanges.
Chances are even some of those who support it right now, abandon it in the future. For Iranian users, there is still a need for middlemen, for opening accounts, deposits and withdrawals to IRR. Exchanges and websites accepting Webmoney and perfect money are not very well known for their security measures except localbitcoins. Since Webmoney operates under Russian government laws, it is possible if it decides to dismiss its cryptocurrency wallets.
Buying and selling bitcoin through escrow websites like Localbitcoins. Websites like Localbitcoins. Iranian Rials. Once you find the desired seller, you could start an open trade with them and set your terms in the chat.
Then they are obliged to deposit the bitcoins in the website escrow. The desired payment method for most of the trades between Iranian is bank transfer via debit cards. Most of them use telegram groups to start peer-to-peer trades which is a lot riskier. Trading with IRR Iranian Rialdoing payments through conventional Iranian payment methods such as bank transfer by debit cards, or even cash. Small number of Iranian users on these sites. Currently, these sites are not well known in Iran, and as a result, the number of sellers and buyers in Iran is very low.
Limited Supply. Since in these kind of websites, trade volumes directly depend on the number of users, hence small number of Iranian users results in very low trading volumes.
The escrow system guarantees your trade security in the background. The whole trade process is trustless. This method is purely peer-to-peer and there is no middleman or even escrow service in .
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