Iranian cryptocurrency platforms began implementing temporary restrictions on Tether trading against the Iranian rial on Wednesday evening, in line with central-bank instructions. The measures include halting overnight transactions and setting a daily purchase cap of 2,000 units per user, according to notices issued by the platforms.
Details of the overnight shutdown
Trading in the Tether-rial market is halted from 9 p.m. to 9 a.m. Tehran time, or GMT plus 3 hours and 30 minutes. Nobitex said the restrictions would remain in place until Sunday, 4 October, while Wallex is applying them until the end of Saturday, 3 October, with the overnight shutdown period ending on Sunday morning.
The two platforms confirmed that other services would continue and that users would retain access to their assets, with no ban on holding the currency or general freezing of balances. Wallex said Tether deposits and withdrawals would remain available, although new orders could not be placed in the affected market during the shutdown hours.
Nobitex’s measures include hiding the chart for the Tether-rial market and reducing the leverage ratio to one. The platform also warned that the automatic liquidation of open positions could continue during the shutdown, while Wallex said it would suspend liquidations until trading resumed in the morning.
Tether’s link to the dollar and the foreign-exchange market
Tether, known by the symbol USDT, was launched in 2014 and designed to maintain a 1-to-1 value against the US dollar, unlike cryptocurrencies such as Bitcoin and Ethereum, whose prices experience sharp volatility. Tether Limited, registered in the British Virgin Islands, says its tokens are backed by reserves including cash and cash equivalents and other assets.
Tether’s link to the dollar does not mean that its price against the Iranian rial remains stable. Wallex said the local price is affected by movements in the foreign-exchange market and by supply and demand inside Iran, and can fluctuate rapidly in both directions.
Iran’s semi-official Tasnim news agency linked the overnight restrictions to the possibility that Tether trading could affect expectations in the parallel foreign-exchange market. It said curbing trading could limit speculation and price signals that reinforce expectations of a rise in foreign-currency values.
Ban on bank financing for purchases
The Central Bank of Iran issued a circular on 30 September, prohibiting direct and indirect bank financing for the purchase of gold, foreign currencies and cryptocurrencies, whether through banks or their digital units.
The central bank called on banks and other credit institutions to monitor the use of loans and prevent funds from being directed toward speculation and unproductive activities, while holding the relevant management teams responsible for violations.
