Cryptocurrencies in Iran: Legal Uncertainty and Everyday Challenges for Citizens

TEHRAN, Iran - Aug. 30, 2025 - PRLog -- ryptocurrencies are no longer just an economic or technological phenomenon; they have become a socio-legal reality that challenges traditional financial and property laws worldwide. In Iran, despite the growing interest of many citizens in digital assets, the lack of a clear legal framework remains the greatest obstacle for users and investors.

Are cryptocurrencies considered "property" under Iranian law?

The first fundamental legal question is whether cryptocurrencies can be classified as "property." According to Iran's Civil Code, property is defined as something with economic value that can be owned. Since cryptocurrencies clearly hold economic value and can be possessed, many legal experts believe they fall under the category of "movable property." This recognition is essential for addressing issues such as civil liability, theft, fraud, and inheritance.

No comprehensive legislation yet

Iran has yet to pass a specific law regulating cryptocurrencies. The only formal stance was taken by the Supreme Council on Anti-Money Laundering, which in May 2021 issued a directive on identity verification for local crypto exchanges. However, this directive does not address the nature of cryptocurrencies themselves nor the rights of ordinary users. As a result, Iranian courts often rely on general laws, such as the Civil Code or Islamic Penal Code, leading to inconsistent and sometimes contradictory rulings.

Practical challenges for citizens

This legal uncertainty creates several tangible problems:

• Trading and taxation: Personal crypto trades remain in a gray area. If one party fails to honor their obligation, legal remedies are unclear. Taxation on crypto profits is also undefined.
• Inheritance: Passing on cryptocurrencies after the owner's death is extremely complicated. Without a clear will that includes private keys, assets can be lost forever.
• Fraud and asset recovery: Fraud in the crypto space is widespread. Since blockchain transactions are irreversible, recovering stolen assets is nearly impossible unless the perpetrator's identity is traceable within Iran.

A lawyer's advice for crypto holders

• Draft a notarized will to secure digital assets and ensure heirs can access them.
• Document large transactions in writing and verify the counterparty's identity.
• Avoid high-risk schemes such as Ponzi projects, online gambling, or shady platforms that could lead to criminal charges.

Cryptocurrencies are here to stay, and legal systems worldwide are gradually adapting to this new reality. Iran, too, will eventually need a comprehensive and transparent legal framework that both protects citizens' rights and allows government oversight. Until then, awareness and individual caution remain the only protective shield for Iranian users navigating this high-risk digital frontier.

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