Unrecognizable Iranian students in the UK have turned to Bitcoin as an instrument to evade the economic sanctions imposed on their country, according to a guardian relationship. Parsa Sadat, law student at the University of Reading, is among Iranian students who can not pay tuition and is completely stuck in school after Iran has been hit by sanctions by US President Donald Trump last month.
Sadat and his fellow Iranian students risk revoking the student visa after sanctions have prevented them from paying school fees. While Sadat's family has the means to pay for their fees, they are not able to get the necessary funds, since the sanctions imposed by the United States have interrupted the transfer of money from Iran.
As a result, he was told by the university management that his only line of action is to make the return trip home during the Christmas season and to return with the required tuition fees (a sum of £ 5,350) to make payments for the next academic term.
Sadat, who is in his final year at the university, said he had already been warned five times about his taxes, also mentioning the threats of suspension. However, even if you return home and get the money, the return with the money – especially from a country that has been classified by the British Foreign Office as a high risk nation – could also be difficult.
One of Sadat's professors, Professor Mai Sato, was of the opinion that it was dangerous for Sadat to transport such large sums from Iran to the UK, urging the university to speak out against injustice was inflicted on students.
"Even if the funds for the flight and taxes can be increased, requiring Parsa to transport large sums of money to the interior and a country classified by the Ministry of Foreign Affairs as a high-risk country, it exposes the university justifiable criticism. "Parsa himself believes that carrying several thousand pounds in cash is dangerous."
The US government announced in May that it was considering extinguishing the 2015 US-Iran nuclear deal to re-impose sanctions that the agreement was set up to help lift.
The sanctions were finally applied, with the commercial banks of the country removed from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. As a result of this exclusion, the Iranian Central Bank has been cut off from the rest of the world and is unable to conduct business with financial institutions around the world.
Despite sanctions, the British government has promised that it will continue to try to encourage banking relationships with Iranian companies, where appropriate. A spokesman for the prime minister said that the "office"[regrets] the re-imposition of sanctions by the United States "and the country has made efforts to trade with Iran, even if banks are moving away from commercial affairs because of the weight of sanctions.
While waiting for a lasting solution to their difficulties, some students have found a temporary solution to obtain funds from Iran. Maziar Bahari, an editor of the local news IranWire.com, has informed The Guardian that hundreds of students are affected by banking restrictions, but some of them are now using "bitcoins and other cryptocurrencies to get money" from their family in Iran.
In response to these sanctions, the country appears to have turned into cryptocurrencies, exploiting its unregulated and decentralized nature to ensure that financial assets and transactions, especially for businesses, continue as normal.
In an interview with local TV, Alireza Daliri, vice president for management and investment at the directorate for scientific and technological affairs, said that the country was already working on developing a digital currency.
"This currency would facilitate the transfer of money (to and from) anywhere in the world, and it can help us when it comes to sanctions."
The move has been widely criticized by the US Financial Crimes Network, with the agency demanding that cryptographic exchanges ensure that they control cryptocurrencies by the Iranians as a means of circumventing sanctions.