Iran imposes strict operational hours for crypto exchanges following a $100 million hack at Nobitex.
Introduction to Iran's Crypto Curfew
In response to the massive breach at Nobitex, Iran has established strict operational hours for local cryptocurrency exchanges. They are now allowed to operate only from 10 AM to 8 PM local time.
Reasons for the Restriction
According to Chainalysis, these measures aim to enhance transaction oversight and prevent capital flight abroad. The Nobitex hack, one of the largest in the region, revealed vulnerabilities in the country's crypto infrastructure, prompting authorities to take significant action.
Implications for Traders and the Market
For Iranian traders, the curfew alters the rhythm of crypto activity:
* Reduced flexibility: The absence of late-night trading may decrease liquidity. * Heightened scrutiny: Decreased anonymity increases the risk of grey-market transfers. * Market impact: Price volatility may increase during compressed trading hours.
Smaller exchanges may face reduced revenue, while traders might shift to peer-to-peer platforms or offshore services.
The imposition of a curfew for crypto exchanges in Iran reflects the authorities' efforts to tighten control over the growing cryptocurrency sector, which is becoming increasingly significant yet risky within the country's financial system.
