The Central Bank of Iran has officially banned the use of cryptocurrencies such as bitcoin in all monetary and financial centers of the country.

Citing its reasons behind the ban, the CBI said that “various types of virtual currencies have the potential to become a tool for money laundering and the financing of terrorism…” (loosely translated).

With the latest announcement, all branches and subsidiaries of banks and credit institutions and exchanges are now prohibited to engage with cryptocurrencies.

“It should also be noted that the offenders will be treated in accordance with the relevant laws and regulations,” the CBI added.

Earlier this year, reports suggested that a state cryptocurrency was being considered by authorities. Iran’s current ICT minister Mohammad-Javad Azari Jahromi had tweeted (as quoted by CCN):

“In a meeting with the board of directors of the Post Bank of Iran on digital currency based on blockchain, the necessary measures for the pilot implementation of the country’s first digital currency were set out by using the country’s elite capacity. A pilot model for review and approval will be presented to the banking system of the country.”