17.05.202210:37 Forex Analysis & Reviews: Iranian authorities freeze bank accounts connected to crypto activities

About 10,000 Iranian bank accounts were blocked for "suspicious activities", including cryptocurrency-related activities, Iran's Ministry of Intelligence said. The operation was conducted in collaboration with the country's central bank.

According to Iranian authorities, 9,219 bank accounts owned by 545 individuals were frozen. The volume of the accounts was approximately 60 trillion Iranian tomans ($1.98 billion). The ministry did not provide any details on how much of the turnover was in digital currency.

In 2021, Iran banned the use of cryptocurrencies mined outside the country. Banks and other financial institutions are free to use cryptocurrency, derived from sanctioned miners, to pay for imports. The Iranian regulator is currently tracking down violators in collaboration with other ministries and government agencies. In December 2021, the Iranian authorities froze accounts of more than 700 "illegal" foreign exchange traders.

Furthermore, Iran is also cracking down on unauthorized cryptocurrency mining. The authorities have closed down about 7,000 unauthorized mining facilities in the past two years. The Iranian government has increased penalties for illegal crypto mining, including additional fines and imprisonment.

Many developing countries with unstable economies have cracked down on the use of cryptocurrencies. Earlier, the Nepal Telecommunications Authority banned all crypto activities in the country. The Nepalese regulator announced that websites, apps, and online networks were outlawed in Nepal, and warned the public that activities involving cryptocurrencies were illegal. The authorities noted the rapid rise in crypto transaction could severely harm Nepal's economy.

On the technical side, BTC has slightly stabilized after a massive sell-off triggered by the failure of UST and the Terra blockchain. Bullish traders would need to steer the pair above $31,000 to gain the initiative. If bitcoin settles above this level, it would quickly regain $32,650, easing investor anxiety. Furthermore, BTC would have to hold on to $29,400. Bitcoin still has support from major market players, which should slow down its further drop if the cryptocurrency does not reverse upwards. BTC would likely sink if equities, particularly the NASDAQ, drop sharply. A breakout below $29,400 would send the cryptocurrency to the low at $27,600, opening the way towards $25,700. If BTC sinks to $25,700, it will shake up the market once again and cause panic among many investors.

Ethereum

The resistance level of $2,150 remains a key mark for ETH. A breakout below this level would quickly push Ethereum down towards $2,295 and $2,430. ETH needs to settle above this resistance level to start a new downtrend - this would allow Ethereum to test highs at $2,630 and $2,760. Renewed pressure would send ETH downwards to the major support level of $1,980. A breakout below this level would open the way towards the lows at $1,840 and $1,690, where major market players would come into play once again.