Iran's Central Bank abruptly blocked payment gateways for cryptocurrency exchanges, triggering sharp criticism from the country's digital assets industry and marking the third such restriction in recent months.

The latest shutdown, implemented without prior notice, comes weeks after the central bank's move to freeze crypto exchange bank accounts and a subsequent November suspension of payment processing services, all citing concerns over speculation in the Tether (USDT) market and money laundering risks.

The announcement by the CBI comes as the Iranian government reunifies foreign currency rates as the rial hit a record low against the US dollar on December 28.

Industry leaders have condemned the regulatory actions as "unprofessional" and harmful to Iran's digital economy.

In an open letter to President Masoud Pezeshkian, cryptocurrency platform operators warned that the restrictions threaten more than 5,000 skilled jobs and dozens of knowledge-based companies in the sector.

"These restrictive and destructive decisions in technology policymaking not only eliminate Iran's limited opportunity for economic growth through new technologies but also drive away the country's most important asset - its capable human capital," the letter stated.

The central bank's intervention specifically targets the Iranian rial payment channels used by digital currency exchanges, though withdrawal functions remain operational.

Officials had previously warned payment service providers about unauthorised instant settlement systems operating outside the banking framework which have becoming increasingly popular as a way to avoid official channels and sanctions.

The timing has proved particularly controversial, as it follows the central bank's announcement positioning itself as a "development-oriented regulator" for the cryptocurrency industry. Critics argue this stands in stark contrast to its actions.

"What we're seeing is a clear contradiction between regulatory rhetoric and action," a senior cryptocurrency executive told Didban, speaking on condition of anonymity.

Industry advocates argue that cryptocurrency trading has provided Iranians with investment opportunities in the face of high inflation and limited traditional options.

The central bank has yet to respond to the industry criticism or provide a timeline for potentially lifting the restrictions.