Key Insights:
- In the latest crypto news, Iran is reportedly using cryptocurrencies to bypass sanctions and the internet ban.
- Internet ban disrupts crypto mining operations in Iran.
- Crypto’s growing role amid geopolitical tensions sparks discussions among market participants.
Iran has been making headlines recently as geopolitical temperatures rise. Interestingly, the latest crypto news highlights interesting crypto-related developments in the country’s operations.
Recent crypto market updates revealed that Iran has been using cryptocurrencies to circumvent sanctions imposed by the US. Those sanctions go as far back as the 1970s, and this has limited the country’s access to the global markets.
According to crypto news reports, the Iranian military recently routed $1 billion through UK-based crypto exchanges. A move that would have otherwise been nearly impossible without digital currencies.
Previous crypto news reported that Iran has been selling advanced weapons using cryptocurrencies. This was not the first time that Iran got involved in cryptocurrencies.
Crypto News: Internet Ban Disrupts Mining Operations
Iran has also been running massive crypto mining operations. This highlights one of the avenues through which the country has been securing crypto market access.
However, crypto news reports revealed that the mining operations have recently been heavily disrupted after the Iranian government imposed an internet ban.
The Iranian government instituted the ban after massive protests erupted in the country. This was triggered by rising inflation and economic woes.
The ban means the country may temporarily. This also means Iranian citizens may not be able to access crypto services. However, it also raises questions such as whether cryptocurrencies could be the answer to its current economic challenges.
Although the internet ban may challenge crypto market operations in the country, there may be some workarounds for mining companies in the country.
Also, the fact that the government has been bypassing sanctions using crypto may also offer a partial solution for its current economic situation.
Crypto’s Growing Involvement in the Geopolitical Arena
The current Iranian situation underscores an important observation regarding the role of crypto at the global scale. Sanctions basically mean one country denies another access to its infrastructure. In this case, Iran was denied access to the banking system.
Cryptocurrencies and blockchain may thus represent freedom for countries that are in the same position as Iran. This is because limited access to banking can cripple a country economically, especially if it is not able to access critical resources.
On the other hand, cryptocurrencies may be seen as a threat to the US and its powerful grip on the global monetary system. This was one of the key reasons why cryptocurrencies initially received heavy opposition.
Cryptocurrencies also represent a double-edged sword. The US has recently been pushing towards creating legal frameworks around crypto. Once implemented, those frameworks will pave the way for more control over cryptocurrencies.
This may include, but is not limited to, tracking transactions across the world. The transparency that blockchain offers may be used to track and even block transactions attempting to bypass sanctions.
An aggressive push by governments may also push crypto users deeper into DeFi. This may also explain why the privacy coin segment has been gaining traction recently and will likely continue to do so.