IBENA- Mohammadreza Farzin, the Head of the Central Bank of Iran (CBI), clarified the lines of mutual interaction and the legal requirements between the Central Bank and the players in the "digital economy and fintech" sector during a meeting with industry stakeholders.
He announced the Central Bank's efforts to support innovative businesses and investments while developing the activities of digital economy and fintech players in accordance with regulatory laws.
Farzin stated that operating within the legal framework is one of the Central Bank's demands in the digital economy and fintech sector, which includes compliance with anti-money laundering laws, preventing speculation, and combating capital flight and monopolization.
"Given the emerging and rapidly growing nature of this field, the uncertainties in regulation are also new; therefore, the regulatory framework must adapt to the rapid growth of knowledge in this area," he added.
He emphasized that the Central Bank of Iran also stresses the necessity of developing this sector within the Strategic Regulatory Council for the digital economy and fintech, stating, "We have set several principles as red lines in regulating this sector, including that fintech activities must not lead to money laundering. In other words, any activity that is prohibited by law also prohibits its monetary transactions, and specific regulations must be established in the fintech sector to prevent this phenomenon."
Farzin identified the formulation of laws and the development of trust in the digital economy and fintech as another step towards aligning the interests of the private and public sectors in economic activities.
He stressed that regulation in this field should not hinder the development and expansion of business activities, as regulation ultimately benefits all stakeholders.
The head of Central Bank also identified capital flight from the country as another red line for stakeholders in this sector, adding that this limitation is prevalent in all countries, and concerns about capital flight are inherent to all central banks.
In further remarks about the framework regarding online gold sales platforms, he stated that these platforms should not function as gold deposit-taking entities but should engage in trading.
"They must have the gold they sell in hand, rather than selling it first and then buying it; this approach has both legal and religious issues," he emphasized.
