Iran (IMNA) - However, the roots of cryptocurrency can be traced back to the late 1980s, and it was in October 2008 that Satoshi Nakamoto introduced the concept of Bitcoin and the peer-to-peer electronic system. The first block of the blockchain network was mined in January 2009, marking the beginning of a new era.
As blockchain technology developed and the crypto industry grew, regulators worldwide faced the challenge of controlling this emerging field. While some countries were cautious, others saw the potential for development and embraced it. One such country was the United Arab Emirates (UAE), which quickly recognized the opportunities presented by cryptocurrencies.
With a proactive approach, the Dubai Financial Services Authority (DFSA) has implemented crypto-friendly regulatory frameworks. These frameworks encompass policies for Initial Coin Offerings (ICOs) and regulations governing cryptocurrency trading platforms. Dubai, in particular, has actively facilitated investment in digital currencies, providing a supportive environment for investors.
Through a series of laws and regulations, the UAE has positioned itself as a destination for those interested in participating in the crypto market. This forward-thinking approach has attracted investors and established the UAE as a hub for cryptocurrency-related activities.
Overall, the journey of cryptocurrency and blockchain in the UAE has evolved from initial concerns over volatility and illicit activities to a regulated and welcoming environment for digital currency investment. The UAE's proactive stance has paved the way for the growth and development of the crypto industry within its borders.
In recent news, the Dubai Financial Services Authority (DFSA) has introduced regulatory frameworks that are favorable towards cryptocurrencies. These frameworks cover both Initial Coin Offerings (ICOs) and the operation of cryptocurrency trading platforms. Dubai has actively encouraged investment in digital currencies through these initiatives.
Meanwhile, the situation in Iran regarding cryptocurrencies has been complex. According to certain statistics, an estimated 12 to 15 million Iranians are involved in the cryptocurrency market. This includes retail investors as well as ordinary individuals who participate in street and market trading. A comprehensive report released by a specialized media outlet this year reveals that digital currencies rank as the third most popular choice for investment among Iranians.
When it comes to investing in cryptocurrencies, Iranian individuals utilize both domestic and foreign platforms. The number of domestic platforms available is quite significant. According to an annual report, digital market investors in Iran are typically around 35 years of age and are spread across different regions throughout the country.
In light of domestic restrictions and the slow legislative process, many users are increasingly drawn to foreign platforms as they perceive limited viable alternatives. A key factor driving this attraction is that foreign platforms do not require authentication or provide extensive market data.
However, the migration of Iranian users to foreign platforms goes beyond a simple choice between domestic and foreign businesses. This issue assumes a significant dimension when Iranian assets on foreign platforms face the risk of sanctions or become vulnerable to fraudulent activities, data breaches, and property hacking. In such cases, users are left without any means of seeking justice or compensation, resulting in the loss of their assets.
Moreover, there is a more substantial risk associated with Iranians having accounts on foreign platforms. The information of Iranians at a macro level is shared with platform owners, potentially leading to severe security breaches at the national level.
Legislation serves as a logical solution to safeguard user rights, protect other involved parties, and establish transparency. Recently, the Central Bank of Iran introduced the financial technology (fintech) roadmap, aiming to outline measures for both transparency and regulation in digital trade.
Abbas Ashtiani, the CEO of Blockchain Association, argues that there is an inherent contradiction between restrictions and transparency. He believes that imposing restrictions on users will only drive them towards illegal channels, putting their personal information and assets at risk.
Ashtiani emphasizes the need for laws that protect user rights while also taking into account the perspectives of legislative and regulatory bodies. Instead of approaching issues from a negative standpoint, he suggests that transparency should be prioritized over driving activities underground.
The primary concern for domestic platform users, according to Ashtiani, is ensuring the protection of their assets within the boundaries of the law. By guaranteeing that users' information remains within the country and is not misused, regulatory bodies can have peace of mind.
Ashtiani further argues that restrictions such as deposit limits, as outlined in the fintech roadmap document for domestic cryptocurrency platforms, not only fail to safeguard user rights but also hinder the market's visibility. This, in turn, provides opportunities for other countries in the region to surpass and outpace the legal bodies in terms of development.
In countries like the UAE, Malaysia, Canada, Japan, and France, where the cryptocurrency industry has seen significant growth and efforts have been made to attract capital and foster economic development, government agencies such as ministries of economy and stock exchange organizations have stepped in to regulate the blockchain market.
Iran can learn from these examples and apply them to develop its own cryptocurrency industry. However, it is crucial for Iran to consider the concerns of legislative bodies and adhere to transparency requirements. Failing to do so may result in the implementation of unprofessional and restrictive regulations, which could potentially drive Iranian users towards non-transparent cryptocurrency exchange methods. This could include underground, insecure, and non-transparent foreign platforms that offer no visibility of the market.
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