Iranian Banks Get Disconnected from the SWIFT System Amid U.S. Sanctions
Iran will now be more isolated than before from the financial world. The financial service SWIFT has allegedly disconnected some Iranian banks from the network. The information was released by Gottfried Leibbrandt during an event in Paris the last week.
Some Iranian banks will be suspended from the messaging system. The decision was taken in order to preserve the stability and integrity of the global financial system. As Reuters explains, in a statement that was issued by Swift during the last week, they did not mention U.S. sanctions related to Iran.
It is important to remember that Iran and the United States have been discussing a nuclear deal to stop the development of nuclear arms in the Asian country.
SWIFT facilitates cross-border payment services to almost every country around the world. It seems that SWIFT was acting simply in order to follow the rules that were established by the United States, even when the company is based in Belgium.
Because of the situation that the country is currently experiencing, Bitcoin and cryptocurrencies have expanded among its population. Additionally, the government has also hinted that it could be creating a national cryptocurrency in case of being necessary.
Back in September, lawmakers recognized Bitcoin mining activities as an industry. Iran is currently the third cheapest country in the world to mine Bitcoin and other virtual currencies.
The US Treasury’s Financial Crimes Enforcement Network mentioned that virtual currencies were part of evasion policies that were carried out by Iran. In an advisory, the agency mentioned that blockchain ledgers that originate or terminate in Iran must be considered and reviewed.
“Institutions should also be aware that the international virtual currency industry is highly dynamic; new virtual currency businesses may incorporate or operate in Iran with little notice or footprint,” the agency wrote.
Venezuela, for example, has already launched a national virtual currency known as Petro. This virtual currency was created with the intention to avoid international sanctions imposed by the United States and other countries.