The Iranian government has finalized a series of regulations on cryptocurrencies. A “comprehensive and detailed” law ratified by the administration reportedly provides a regulatory framework for cryptocurrencies, including their licensed use and cryptocurrency mining.
Iran finalizes cryptocurrency regulations
The Iranian government has assessed all cryptocurrency-related issues and passed a number of cryptocurrency regulations, Reza Fatemi-Amin, the Minister of Industry, Mines and Trade, told reporters at the conclusion of an industry event. car in Tehran.
He explained that the government has ratified a “complete and detailed” law defining regulations on cryptocurrencies, including the use of fuel and electricity for cryptocurrency mining and the authorized uses of cryptocurrencies, the Tasnim news agency said.
The minister added that under an agreement between his ministry and the Iranian central bank, the cryptocurrency can be used to pay for imports. He also noted that local entrepreneurs can import cars using cryptocurrencies instead of the US dollar or euro.
Using cryptocurrency to pay for imports is seen as a way to bypass US sanctions imposed on Iran’s financial and banking sector, allowing Iran to trade with countries similarly embargoed by US sanctions, including Russia.
Minister Fatemi-Amin was quoted by the Iran International publication as saying:
All issues related to cryptocurrencies have been devised, including how to provide fuel and energy and how to assign and grant licenses.
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 official import order was successfully carried out with a cryptocurrency worth 10 million dollars. 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 Trade noted that many mining farms operate illegally in Iran. He explained that some cryptocurrency miners had previously been licensed and licensed to operate in the country. However, their operations were subsequently suspended. Fatemi-Amin said the government has decided to resume licensing for crypto mining operations under the new regulatory framework.
Iran has a complex relationship with cryptocurrencies. In August 2019, Iran’s central bank banned cryptocurrency trading within the country, but the government has since allowed the use of cryptocurrencies, such as bitcoin, to pay for imports. Authorities have not disclosed which other cryptocurrencies can legally be 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 rates for electricity, and sell. their bitcoins mined directly to the government.
However, in December last year, the Iranian government ordered licensed cryptocurrency miners to temporarily halt operations due to extreme weather conditions that strained the country’s electricity grid during the cold months. Tavanir, the Iran Power Generation, Distribution, and Transmission Company said illegal cryptocurrency mining in Iran accounted for nearly 85% of the industry’s energy consumption. The national electricity company then announced a four-month ban on cryptocurrency mining in May. Authorities lifted the ban in mid-September after licensed crypto mining facilities voluntarily shut down their operations to alleviate the electrical load.
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