Iranian traders, economists and digital market participants are alarmed by new state curbs on stablecoin holdings, telling Iran International the Central Bank’s decision will choke savings and drive capital offshore amid the historic devaluation of rial.
“Iran’s stablecoin limits will not stop dollar demand — they will only drive it deeper underground,” a Tehran-based economist who did not want to reveal his identity told Iran International.
The Central Bank’s High Council late last month approved a $5,000 annual purchase limit per person and a $10,000 ceiling on total stablecoin holdings.
The rule, announced as the rial plunged to a record low of 1,170,000 per US dollar earlier this month, drew sharp criticism from Iranians using Tether and other digital currencies to protect their assets from geopolitical headwinds.
The slump was triggered by the UN sanctions which resumed late last month after European countries suspicious about Iran's nuclear activities activated the so-called snapback mechanism.
The rial stood slightly below 1,140,000 at the time this report was published.
Even a prominent government official criticized the move.
“A disaster is when policymakers with good intentions, but based on wrong reasons and ignoring evidence, make a decision. The result will be weakening governance, erosion of public trust, a threat to people’s assets and discrediting institutions,” Deputy Minister of Communications Ehsan Chitsaz wrote on X.
Crypto market endangered
Traders contacted by Iran International described the new ceilings as both impractical and punitive. “The government keeps tightening controls because it has no real answer for the collapsing rial,” said Farzad, a 29-year-old trader in Tehran.
“They call it regulation, but it’s just another way to shift the burden onto ordinary people. When markets tumble, traders like us will be trapped — unable to cash out or protect our savings.”
“They’ve also started deciding how much people can spend based on their job status — fifty billion rials if you’re unemployed, 200 billion if you earn a salary,” Parham, a 25-year-old in Tehran, said.
“These limits kill initiative and push everyone toward informal channels.”
Parham referred to another Central Bank directive last week that set tiered limits on rial transactions — 200 billion rials for wage earners, 50 billion for the unemployed, and five billion for inactive entities.
Manipulation risk
The new regulation and a concurrent media campaign were meant to manipulate prices, the economist said.
“The $5,000 Tether cap is not about stability; it’s a cover for manipulation,” he said. “They’re draining liquidity under the guise of regulation and trying to buy time while the rial keeps falling. Fear about frozen assets fuels panic, making people sell at a loss.”
Tasnim, a media outlet linked to Iran's Revolutionary Guards, reported that “thousands of addresses on the Tether network have so far been frozen and their assets effectively made inaccessible,” calling for tighter oversight of exchanges such as Nobitex.
Black-market growth likely
Other commentators say the measure will only feed a shadow economy. Saeed Reza Moradian of OTC Crypto Exchange warned that such limits “will lead to the spread of rented accounts.”
“A $5,000 annual Tether limit destroys the digital economy. People’s needs won’t disappear — they will just move to opaque and foreign platforms,” wrote a user called Sepideh on X.
Iran International has observed advertisements offering cash for renting national ID numbers, allowing others to exploit the $5,000 per person stablecoin quotas.
Central Bank officials insist the measure is needed to prevent capital flight. Asghar Abolhasani, Secretary of the bank's High Council said users have one month to comply. But crypto traders told Iran International the rule is unenforceable.
“You can’t police digital assets with outdated banking tools,” said Farrokh, a Tehran-based trader. “Once trust is gone, people won’t wait — they’ll take their money abroad in whatever form they can.”
Failing controls
The comments by people depict a widening gap between official policy and public behavior. Small traders and households that once relied on Tether as a hedge against inflation now face the choice of breaking the rules or watching their savings erode.
For many Iranians confronting another devaluation and the return of UN sanctions, the Central Bank’s rule represents yet another blow to financial autonomy.
Those who spoke to Iran International said the cap will narrow legal channels, amplify underground trade and further alienate citizens from a banking system which is already widely distrusted.
