Legal Requirements in the Policymaking of the Islamic Republic of Iran in Confronting the Phenomenon of Global Cryptocurrencies

Abstract

Global cryptocurrencies are among the most significant and challenging products of modern financial technologies. Through their decentralized technical structure, these cryptocurrencies have challenged the traditional boundaries of monetary and financial sovereignty in terms of governmental oversight. Policymaking regarding how to address this type of cryptocurrency is an important issue whose legal implications can be anticipated only by examining its consequences and effects in the economic and security domains. This study employs a descriptive-analytical method and draws on library sources and news reports. According to the findings, given the characteristics and consequences of global cryptocurrencies—such as the impossibility of centralized oversight, their practical reliance on U.S. dollar-denominated stablecoins, the foreign-exchange costs associated with their mining, and their potential to facilitate financial and security-related crimes—their recognition and promotion in official documents and within the framework of legal governance are assessed as detrimental to financial stability and public order, particularly under Iran’s sanctions-related circumstances. Based on this assessment of consequences, the study proposes a threat-oriented approach combining direct and indirect deterrent measures, such as the imposition of heavy taxation. To implement this policy within the country’s current legal order, it is proposed that the policy be pursued through the Supreme National Security Council, while matters requiring legislation, including the criminalization of relevant conduct and the determination of proportionate penalties, should be addressed by the Islamic Consultative Assembly.