The government of Iran has finalized a set of cryptocurrency laws. A “comprehensive and detailed” law legal by the administration provides a regulatory framework for cryptocurrency, as well as their licensed usage and crypto mining, a government official reportedly said.
Iran Finalizes Crypto Regulations
The Iranian government has evaluated all issues concerning cryptocurrencies and approved a collection of cryptocurrency rules, Reza Fatemi-Amin, the minister of industry, Mines, and Trade, told reporters at the conclusion of an automotive industry event in Tehran Sunday.
He explained that the government has legal a “comprehensive and detailed” law that defines cryptocurrency rules, as well as the use of fuel and electricity for crypto mining and also the licensed uses of cryptocurrencies, Tasnim news agency sent.
The minister adscititious that under an agreement between his ministry and also the central bank of Iran, cryptocurrency are often accustomed procure imports. He to boot noted that native business homeowners will import cars using cryptocurrencies rather than the U.S. dollar or euro.
The use of cryptocurrency to procure imports is seen as the simplest way to avoid U.S. sanctions obligatory on the Iranian finance and banking sector, permitting Iran to trade with countries equally embargoed by U.S. sanctions, as well as Russia.
Minister Fatemi-Amin was quoted by Iran International publication as saying:
All the issues related to crypto-assets, including how to provide fuel and energy, and how to assign and grant licenses were devised.
Earlier this month, Alireza Peymanpak, vice minister of Iran’s Ministry of trade, Mine, and Trade and president of the country’s Trade Promotion Organization (TPO), said the primary official import order was successfully placed with cryptocurrency price $10 million. He added: “By the top of September, the utilization of cryptocurrencies and sensible contracts are widespread in foreign trade with target countries.”
The minister of trade, Mines, and Trade noted that several mining farms are in operation lawlessly in Asian nation. He explained that some crypto miners were antecedently authorized and approved to work within the country. However, their operations were later on halted. Fatemi-Amin same that the government has decided to resume provision licenses for crypto mining operations below the new restrictive framework.
Iran features a advanced relationship with cryptocurrencies. In August 2019, the Iranian central bank banned crypto trading within the country however the government has since allowed the use of cryptocurrencies, like bitcoin, to pay money for imports. The authorities haven't disclosed that different cryptocurrencies are allowed to be wrongfully used for this purpose.
Iran conjointly legalized cryptocurrency mining in August 2019. The country then established a licensing framework for crypto miners, requiring them to get authorization, establish themselves, pay higher tariffs for electricity, and sell their mined bitcoins on to the government.
However, in December last year, the Iranian government ordered licensed cryptocurrency miners to briefly stop operations due to extreme weather taking a toll on the country’s power system throughout the cold months. Tavanir, the Iran Power Generation, Distribution, and Transmission Company claimed that extralegal cryptocurrency mining in Asian nation accounted for nearly 85% of the industry’s power consumption. The national electricity company then proclaimed a four-month ban on crypto mining in may. The authorities raised the ban in mid-September when licensed crypto mining facilities voluntarily shut down their operations to ease the electricity burden.
( Kevin Helms, Bitcoin.com, 2022 )