Local Crypto Exchanges Face New Restrictions In Iran
If crypto is banned in your country, you are not allowed to get involved and do different things. Crypto is permissionless, so anyone from any part of the world is able to get access. Banning crypto will not work. So what's the next thing that can be done?
Imposing restrictions on crypto so that the government can get way more information about what people are doing. Iran imposes new restrictions on local crypto exchanges. Recently Iranian Cyber Police, known as FATA released a 13-page document, and all local crypto exchanges have to comply with crypto regulations.
Iranians can sign up and use local crypto exchanges. Foreign users are not allowed to sign up and trade in local crypto exchanges in Iran. FATA needs personal data about customers and their wallets. Crypto exchanges have to complete video KYC applications and verify all customers. Not only that, as per regulators' instruction, they can freeze any customer's assets.
According to the FATA statement, local crypto exchanges keep and maintain all records and personal data of their customers for at least 10 years. If regulators want to get any information, crypto exchanges are bound to provide the required information at any time.
No one is happy about these regulations and restrictions on crypto except regulators. The central authority will keep watching every single thing that people are doing.
No doubt there will be more crackdown on crypto. If you do not see any restrictions on crypto in your country, maybe the government still works on it that is yet to be published or crypto is banned over there.
People will not feel comfortable using centralized crypto exchanges if they have to go through so many restrictions and requirements before using it. Or, if they use centralized crypto exchanges, FTX happens and users will lose their crypto.
There is a huge potential in Decentralised Finance (DeFi). In spite of exploits and hacks on the Decentralized Finance protocol, we will see more development and innovation that will fix the issues we are facing now. Many people pay attention to DeFi and it is just a matter of time before we see massive growth in this sector.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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