Iranian Authorities Shut Down Over 500 Unlicensed Online Gold Trading Platforms
Tehran – In a decisive move to protect citizens and stabilize the financial market, Iranian regulatory bodies have closed more than 500 illicit online platforms engaged in the fraudulent sale of gold, a practice locally known as “Khali Foroushi” or “short-selling.”
A Market Boom and a Regulatory Challenge
The crackdown comes after a significant surge in the popularity of online gold trading platforms. These digital marketplaces promised an accessible way for citizens to invest their savings, allowing for micro-purchases and the eventual exchange for physical gold. However, this rapid growth exposed a critical vulnerability: the risk of platforms operating without the necessary physical gold reserves to back their sales.
The “Short-Selling” Scheme Explained
According to Mohammad Keshti Ara, a senior member of the Gold and Jewelry Commission of Iran’s Chamber of Guilds, the identified platforms were collecting money from the public without holding any real gold or a corresponding bank reserve.
“These platforms were essentially selling ‘air’,” Keshti Ara stated in an interview. “They would accept public funds but had no tangible gold assets to support the transactions, posing a severe risk to investors, especially during times of economic pressure when liquidity is crucial.”
A Swift and Coordinated Regulatory Response
Faced with a wave of aggressive advertising from these unvetted platforms, supervisory institutions intervened decisively. From early 2024, the issuance of new licenses for online gold sales was suspended, and a nationwide review was initiated.
“The extensive advertising on city billboards itself raised red flags, prompting regulators to scrutinize their operations,” Keshti Ara explained. “It became clear that most of these platforms lacked the physical gold to match their sales, and their activities were halted.”
New Framework for Secure Online Trade
To restore trust and ensure market integrity, a stringent new regulatory framework has been established. The Central Bank of Iran now mandates that any licensed platform must deposit physical gold equivalent to its online sales in a designated bank, with all transactions logged in a national trade system.
Keshti Ara outlined the four essential requirements for legal operation:
- A permit from the Ministry of Industry, Mine and Trade.
- A license from the national union for virtual businesses.
- Authorization from the gold and jewelry union.
- Maintaining a physical gold reserve in a bank, equivalent to all gold sold online.
He emphasized, “Any platform that sells gold without the corresponding physical resources is considered unauthorized and is engaging in illegal short-selling.”
Lessons Learned and a Return to Fundamentals
The official also acknowledged that initially, the process for issuing business permits was too lenient, allowing individuals without specialized expertise to enter the sensitive gold trade. This experience has led to calls for stricter prerequisites, including significant prior experience, for certain high-stakes sectors.
For citizens, the advice from industry experts is clear. “We recommend that people make their gold investments through licensed physical markets,” Keshti Ara concluded. “For investment purposes, buying gold coins remains the most reliable and liquid option, backed by the highest credibility.”