Banking Services of Crypto Exchanges Restricted

Following restrictions on overnight Tether trading and the removal of market charts, banking services for five crypto platforms are also being restricted.

According to Ambassador Arjan, the restrictions imposed on the activities of cryptocurrency exchanges have entered a new stage. After a part of Tether transactions were stopped during the night hours in the past days and restrictions such as the removal of the market chart and setting the daily purchase limit for users were implemented, now the access of five cryptocurrency platforms to banking services is also limited; A decision that can affect users' access to Rials and settlement of transactions.

The new restriction starts at 16:00 today, Monday, October 20, and targets banking services related to depositing and withdrawing money on eligible platforms. Reports indicate that this decision was made in a committee at the National Center for Cyberspace and the Central Bank has notified the banks of its implementation.

This action takes place in a situation where the Central Bank had imposed restrictions on the Tether-Toman market in the past days. In the first stage, a number of cryptocurrency exchanges announced that based on the announced requirements, Tether transactions will be stopped from 9:00 PM to 9:00 AM the next day. At the same time, the daily Tether purchase limit for each user was limited to 2,000 units, and the Tether-Toman market chart was also removed from users' reach.

Now, with the announcement of the restriction of banking services, the range of influence of regulatory decisions from the way of carrying out transactions of a specific market to the routes of rial transfer also expands.

In response to the new decision, Nobitex has announced that the restrictions have been imposed due to the insistence of the exchanges on protecting the privacy of users and refusing to provide their information. According to the published explanation, this restriction will continue for three days, although there is a possibility of its extension.

From an economic point of view, the important difference between the new restriction and the previous regulations is that the suspension of night trading of Tether limited the activity time of a trading market, but the restriction of banking services can directly affect the transfer of money between bank accounts and cryptocurrency platforms. In such a situation, even if it is possible to trade cryptocurrencies within the platform, the disruption of rial settlement may cause problems for users to deposit or withdraw money.

The continuation of restrictions can also affect the behavior of traders. When the ability to quickly access Rials or make transactions at certain hours is limited, some users may face difficulties in managing their liquidity and timely execution of their orders.

The sum of these developments shows that the cryptocurrency market has faced a set of trading and banking restrictions in a short space of time; The restrictions that will have their final effects on users' access to liquidity, the volume of transactions and how the exchanges operate will depend on how the regulations are implemented and the subsequent decisions of the supervisory bodies.