Iranian government approves ‘comprehensive and detailed’ crypto regulations – Bitcoin News Regulation

Iranian government approves ‘comprehensive and detailed’ crypto regulations – Bitcoin News Regulation

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

Iran Finalizes Crypto Regulations

Iran’s government has assessed all issues related to cryptocurrencies and approved a set of regulations on cryptocurrencies, Reza Fatemi-Amin, Minister of Industry, Mining and Trade, told reporters at the end of an automotive event in Tehran on Sunday.

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

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

The use of cryptocurrency to pay for imports is seen as a way to circumvent US sanctions imposed on Iran’s financial and banking sector, allowing Iran to trade with countries under the same US embargo, including Russia.

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

All issues related to crypto-assets, including how to secure fuel and energy, and how to assign and allocate licenses, are thought out.

Earlier this month, Alireza Peymanpak, deputy minister of Iran’s Ministry of Industry, Mining and Trade and president of the Trade Promotion Organization (TPO), he said the first official import order was successfully placed with $10 million worth of cryptocurrency. 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, Mining and Trade noted that many mining farms operate illegally in Iran. He explained that some cryptocurrency miners are pre-licensed and authorized to operate in the country. However, their operations were later halted. Fatemi-Amin said the government has decided to continue issuing licenses for cryptocurrency mining operations under the new regulatory framework.

Iran has a complex relationship with cryptocurrencies. Iran’s central bank banned cryptocurrency trading within the country in August 2019, but the government has since allowed the use of cryptocurrencies, such as bitcoin, to pay for imports. The authorities did not disclose 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 cryptocurrency miners, requiring them to obtain authorization, 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 operations due to extreme weather that affected the country’s power grid during the cold months. Tavanir, Iran’s electricity generation, distribution and transmission company claimed that illegal cryptocurrency mining in Iran accounts for nearly 85% of the industry’s electricity consumption. The national power company then announced a four-month ban on cryptocurrency mining in May. Authorities lifted the ban in mid-September after licensed cryptocurrency mining facilities voluntarily shut down their operations to reduce the load on electricity.

What do you think about Iran approving “comprehensive and detailed” cryptocurrency regulations? Let us know in the comments section below.

Iranian government approves ‘comprehensive and detailed’ crypto regulations – Bitcoin News Regulation

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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