Virtual Currency

By intensifying sanctions against Islamic Republic of Iran, identification and development of mechanisms to sell crude oil has gained attention among most experts and oil industry activists. Limitations for financial transactions and settlements are one of the fundamental challenges in international oil transactions; thus, various solutions are proposed to solve the limitation. Using capability of virtual currencies is one of the proposed suggestions for petroleum transaction under sanctions but there is a research gap in finding whether and which one of these currencies are able to be used in petroleum transactions in present condition. In this study, performed by analysis and quantitative approach, indices are introduced for choosing a valid currency for international transactions, and subsequently are confirmed by experts. The indices are ranked by the experts through TOPSIS method and are studied on the most suitable virtual currencies to find the best suit for petroleum transactions. The results reveal that Bitcoin, Ethereum and Tether are respectively the best, second and third choice for this end. It is noteworthy that some experts might believe the virtual currency market size may not meet the high volume of crude oil transactions, making it unsuitable. Although current study has shown that there would be no problem in covering the whole petroleum market for Iran’s crude oil by virtual currencies platform, if the concerns remain, virtual currency platform could be used for selling Iran’s crude oil temporarily and partially through various channels.

Cryptocurrencies, despite their ambiguous nature, represent one of the most significant new phenomena in the global economy. Since the introduction of the first cryptocurrency, Bitcoin, in 2009, terrorist groups have increasingly utilized these currencies to finance their activities. Consequently, states, organizations, and financial institutions have been compelled to adopt effective anti-terrorist financing strategies in response to this development. This research examines a range of issues related to cryptocurrencies, their utilization in terrorist financing, and the associated benefits and risks. Within the context of Iran's regulatory framework, existing policies and measures to combat the financing of terrorist crimes through cryptocurrencies have led to challenges characterized by conflicting and fragmented approaches to the regulation of cryptocurrency exchanges and mining, both theoretically and practically, which include the illegitimacy of exchange activities. Internally, the Central Bank has issued directives aimed at clarifying this phenomenon and has sought demands from higher authorities, particularly the Islamic Council. In contrast, other countries, such as China, have adopted a dual policy, prohibiting the use of cryptocurrencies in monetary and banking contexts. Notably, nations like Canada and the United States have established specific legal regulations and policies governing Bitcoin usage, while Japan has developed regulations for virtual currency exchange service providers, including mechanisms for identifying violators through guaranteed criminal enforcement.