Iranian Government Approves ‘Comprehensive and Detailed’ Crypto Regulation CryptoBlog

The Iranian government has finalized a set of cryptocurrency regulations. A “comprehensive and comprehensive” law ratified by the administration provides a regulatory framework for cryptocurrency, including their permitted use and crypto mining, a government official reportedly said.

Iran finalizes crypto regulations

The Iranian government has assessed all cryptocurrency issues and approved a set of cryptocurrency regulations, Reza Fatemi-Amin, Minister of Industry, Mines and Trade, told reporters afterward. of an automotive industry event in Tehran on Sunday.

He explained that the government has ratified a “comprehensive and detailed” law that sets out cryptocurrency regulations, including the use of fuel and electricity for crypto mining and permitted uses of cryptocurrencies. , Tasnim news agency reported.

The minister added that under an agreement between his ministry and Iran’s central bank, cryptocurrency can be used to pay for imports. He also noted that local business owners can import cars using cryptocurrencies instead of US dollars or euros.

Using cryptocurrency to pay for imports is seen as a way to circumvent US sanctions on Iran’s financial and banking sector, allowing Iran to trade with countries also embargoed by US sanctions, including Russia.

Minister Fatemi-Amin was quoted by the publication Iran International as saying:

All issues related to crypto-assets, including how to supply fuel and energy, and how to allocate and grant licenses have been designed.

Earlier this month, Alireza Peymanpak, deputy minister of Iran’s Ministry of Industry, Mines and Trade and chairman of the country’s Trade Promotion Organization (TPO), said the first order of official import had been successfully passed with a cryptocurrency worth $10 million. He added, “By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.”

The Minister of Industry, Mines and Commerce noted that many mining farms are operating illegally in Iran. He explained that some crypto miners were previously licensed and allowed to operate in the country. However, their operations were subsequently halted. Fatemi-Amin said the government has decided to resume issuing licenses for crypto-mining operations under the new regulatory framework.

Iran has a complex relationship with cryptocurrencies. In August 2019, Iran’s central bank banned crypto trading inside the country, but the government has since allowed the use of cryptocurrencies, like bitcoin, to pay for imports. Authorities have not disclosed which other cryptocurrencies are allowed to be legally used for this purpose.

Iran also legalized cryptocurrency mining in August 2019. The country then established a licensing framework for crypto miners, requiring them to obtain permission, identify themselves, pay higher electricity tariffs and sell their mined bitcoins directly to the government.

However, in December last year, the Iranian government ordered licensed cryptocurrency miners to temporarily halt their operations due to extreme weather conditions that strained the country’s power grid during the cold months. Tavanir, the Iran Power Generation, Distribution, and Transmission Company, claimed that illegal cryptocurrency mining in Iran accounts for almost 85% of the industry’s energy consumption. The national electricity company then announced a four-month ban on crypto mining in May. Authorities lifted the ban in mid-September after licensed crypto mining facilities voluntarily halted operations to ease the electricity burden.

What do you think of Iran’s approval of “comprehensive and comprehensive” cryptocurrency regulations? Let us know in the comments section below.

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