The Central Bank of Iran has issued a mandatory regulation requiring all cryptocurrency exchanges in the country to operate only between 10:00 a.m. and 8:00 p.m. The sudden decision comes after Iran’s largest crypto exchange, Nobitex, was hit by a massive cyberattack worth around $90 million. The incident caused a huge stir both domestically and in the global crypto community.
The Nobitex hack and the Israeli connection
As previously reported, the attack is alleged to have been carried out by an Israeli-linked hacker group called “Gonjeshke Darande” (Sparrow of Prey), which has previously been linked to operations targeting Iranian infrastructure. It is known that this group has infiltrated energy and industrial systems in Iran in the past. The Nobitex hack suggests that the group has also targeted financial infrastructures. Iran’s cybersecurity units continue to investigate the details of the attack.
The new regulation implemented by the Central Bank aims to prevent possible attacks that may occur during night hours by fixing crypto transactions to traditional bank hours. According to authorities, night hours are both less monitored and stand out as the time periods when cyber attackers operate more frequently.
However, while the cryptocurrency market offers a decentralized ecosystem where transactions can be made 24/7 by its nature, such restrictions have been the focus of criticism. Iranian investors and industry representatives argue that the application could undermine user trust and increase the shift from local exchanges to international platforms.
According to Andrew Fierman, Director of National Security Intelligence at Chainalysis, this restriction is not only security-focused. The Iranian regime wants to take more control of cross-border money transfers made through cryptocurrencies. This may be aimed at preventing cryptocurrencies from being used as a tool by the Iranian people to bypass sanctions.
Fierman also reminds us that the Central Bank has previously attempted similar restrictions for different reasons. In the past, some transactions were restricted, especially in order to combat the depreciation of the Iranian Rial.
Crypto mining and sanctions
Iran has been using cryptocurrency technologies to bypass economic sanctions for years. It is also an important center for crypto mining due to its cheap electricity. However, this advantage has come under serious pressure with the recent tensions and cyber attacks. The long-term effects of the new regulation on the crypto ecosystem will be more clearly seen in the coming weeks. However, for now, the “crypto working hours” for Iranian investors and developers are stuck between 10 a.m. and 8 p.m.
