The Central Bank of Iran’s latest draft regulations emphasize the introduction of a “trusted custodian” and mandatory Proof of Reserves (PoR) as mechanisms to prevent short-selling and improve transparency. However, market participants consider these clauses among the riskiest parts of the proposal.

The draft framework paints a stringent picture of the future of Iran’s crypto market: high initial capital requirements, mandatory partnership structures (Tazamoni), custodians to verify reserves, and full oversight of transactions. While policymakers present the framework as a step toward risk reduction and transparency, private-sector stakeholders argue that it effectively sidelines startups and consolidates the market under banks. According to them, the outcome would not be stronger user protection, but forced capital flight and reduced innovation.

According to Jadeh Makhsus News Agency, the publication of the draft “Regulations for Crypto Brokers” has sparked strong reactions. Many exchanges argue that the conditions outlined can realistically be met by fewer than 5% of operators.

Industry players note that Article 12 requires a minimum initial capital of 50 billion tomans for Type-1 brokerages and 100 billion tomans for exchange platforms—thresholds unattainable for most companies. This means that roughly 95% of existing exchanges would be forced to exit the market.

Beyond the capital requirements, the framework also introduces heavy obligations such as a 50% guarantee and restrictive legal structures, leaving room only for large players. Critics warn that these provisions amount to “the elimination of startups.” They also argue that burdensome collateral requirements would significantly reduce profitability, further suppressing competition and innovation.

Managerial experience rules also pose challenges. The draft requires at least two years of relevant professional experience for directors, while legal partners must maintain a debt ratio below 0.5%. Such strict criteria, stakeholders warn, could shrink the domestic market, pushing users toward foreign or unlicensed platforms. This shift would not only undermine transparency and oversight but also accelerate the outflow of capital from the country.