The need to review the judicial and administrative procedures supervising cryptocurrencies

Yusuf Maddi Judge of Tehran

Regarding the current procedures, as well as legal and executive considerations related to the field of cryptocurrencies, I would like to announce several points for preparing and taking necessary measures by the legislators as follows.

First, the issuance and enforcement of judgments based on cryptocurrencies is fully compliant with existing legal procedures. Given that cryptocurrencies can be defined and identified as a kind of “commodity”, issued orders must be issued supervising the rejection of the same commodity (for example, the rejection of a unit of Bitcoin), not based on its dollar or real value on the day. This, while respecting the nature of the cryptocurrency itself, will also be immune to price fluctuations.

Secondly, the principle is that everything is “obsolete,” and transactions in relation to it are regarded as flawless unless the legislature explicitly prohibits it. Therefore, any prohibition or restriction in this area requires the enactment of legislation by the Islamic Council, and the Cabinet’s resolutions alone cannot provide for the obligation to limit or prohibit cryptocurrency transactions.

Third: Currently, numerous legal and criminal cases involving cryptocurrencies are being handled in the Cybercrime Special Court as well as legal and criminal courts across the country, leading to judicial verdicts. This in itself testifies to the acceptance of the legal nature and judicial resolvability of claims related to cryptocurrencies.

Fourth, due to the technical and decentralized nature of cryptocurrencies, it is possible to pay with them in the framework of contracts and legal transactions. Thus, phrases such as “anonymity of cryptocurrencies”, sometimes expressed by some general authorities or institutions, arise from insufficient awareness of the technical and legal nature of these assets. Cryptocurrencies have a binary nature, their transactions are recorded and traceable with a specific hash rate, which provides the ability to authenticate and track transactions.

In view of the above, a review of existing administrative and judicial procedures, as well as the issuance of transparent and coordinated decrees regarding the legal acceptance and handling of cryptocurrencies, are necessary measures.