Parliamentary Committee Report: Daily Cryptocurrency Transactions on Par with Stock Market Trades, But Regulatory Actions Insufficient”
The Parliamentary Committee on Article 90 has reported that daily cryptocurrency transactions now match the volume of daily stock trades in the capital market. However, the report criticizes the regulatory bodies for their inadequate actions in regulating this sector over the past years.
According to the report read by Ali Keshvari, the spokesperson for the committee, in a public session of Parliament, there is a pressing need for legislative and supervisory organization in the cryptocurrency sector. The report emphasizes that merely banning cryptocurrencies has proven ineffective in managing the market.
Keshvari highlighted that one of the main concerns for stakeholders in this sector is the issue of payment gateways, with some being provided to sites without central bank approval.
Status of Government’s Cryptocurrency Bill
Regarding the government’s cryptocurrency bill, which has yet to be submitted to Parliament, Keshvari noted that due to widespread disarray in the cryptocurrency space, particularly in trading and storage, and the government’s delay in presenting the bill, the Economic Committee of Parliament has introduced the “Regulation and Development of Cryptocurrencies” draft based on the legal draft provided by the Vice President for Legal Affairs. This draft has been accepted and its general principles approved.
Comments from Parliamentarians
Mohammad Sabzi, a representative from Saveh, commented that the bill regarding cryptocurrencies, which has been pending since the 11th Parliament, has not introduced any new issues. He suggested that it would be preferable for the bill to be initiated by the government rather than Parliament.
Mojtaba Zolnouri, a representative from Qom, remarked that the new Minister of Information Technology, Sattar Hashemi, has the right to review the bill. He expressed hope that the review process would be expedited.
Zolnouri also stressed the importance of resolving the cryptocurrency issue, noting that the government needs to address both the facilitation of stakeholder operations and the protection of national interests in the financial and banking sectors. He indicated that legislative changes might even affect the religious scholars’ views on cryptocurrencies.
Concerns from Various Institutions
The report also highlighted concerns from different oversight and research organizations, including the National Inspection Organization, the State Audit Court, the Ministry of Intelligence, and the Parliamentary Research Center. Key concerns include the need for a comprehensive strategy for dealing with cryptocurrencies, financial crimes facilitated by these assets, tax evasion, use in gambling sites, and links to terrorist organizations.
The Ministry of Intelligence has proposed the formation of a working group comprising relevant authorities and supervisory bodies to monitor and regulate the cryptocurrency phenomenon.
Government and International Responses
Keshvari pointed out the varied and sometimes conflicting approaches of countries towards cryptocurrencies. He noted that while some governments are adopting measures to benefit from blockchain technology by developing regulated cryptocurrencies, they also strive to regulate the market effectively. The report mentions that governments generally place the risks of engaging in these markets on the participants but attempt to harness the advantages of blockchain technology through regulated development and oversight.
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