All Eyes on Iran as It Launches PayMon, Its Gold Backed Cryptocurrency

For the next few days, the crypto community across the world will shift their eyes and ears towards Iran as the Islamic based nation launches its digital coin PayMon. In total, one billion PayMon tokens will be minted by Iran to tokenize properties and assets of banks operating within its borders. Just like Venezuela’s Petro, Iran’s PayMon will be backed with gold.

According to local news outlet Financial Tribute, four banks formed a partnership to work on the development of the coin. The four banks are Bank Mellat, Bank Melli Iran, Bank Pasargad and Parsian Bank. On the other hand, when it comes to handling the technical aspect of the project blockchain startup firm Kuknos comes in. Furthermore, for listing the coins, Iran went for an over the counter exchange known as Iran Fara Bourse. Apart from just minting PayMon to bypass sanctions, Iran is in talks with several countries to form a working relationship to carry out transactions in virtual currencies. Some of the countries Iran have reached out to are Bosnia, Germany, Austria, Russia, United Kingdom, France, South Africa and Switzerland, if successful the latter countries will propel the development of the crypto sector in Iran to the next level.

Iran’s Central Bank Releases Draft Regulations

While the country was launching PayMon, the Central bank of Iran released its first draft or regulations for the sector. Through the new laws, the government hopes the industry will be streamlined and provide a conducive environment for players. But first and foremost the regulations will get rid of the ban previous placed while at the same time place a ban on the trading of global digital coins locally. Furthermore, the new laws will set a limit on the amount of global cryptocurrencies one can hold in the same way the government has a limit on the amount of Euros one can own. In a country which registers $10 million worth transactions in crypto per day, complying with the restrictions to be imposed by the new law will be a headache to many enthusiasts. Apart from the limits, the new regulations also state tokens will only be tradeable in licensed exchanges and certified banks. Although the new restrictions from the new laws won’t be received well by many, they are up for debate. Besides all the above Iran is facing another hurdle as legislatures in the US seek to impose sanctions on nations working with Iran on the development of its crypto.