It is illegal to buy or sell cryptocurrency in Iran, the head of the country’s monetary authority has recently reminded citizens and businesses. But, the Islamic Republic’s governor pointed out that cryptocurrency mining and their use in payment for imports are not illegal.
A top banker confirms that crypto trading is still illegal in Iran
According to Ali Salehabadi (the governor of Central Bank of Iran), the purchase, sale, and use of digital assets for investment purposes are prohibited. The official also pointed out that authorized entities and persons can legal mine cryptocurrency for international settlements.
The CBI chief referred to the regulations that were adopted two years ago by the bank and various government institutions, such as the Ministry of Industry, Mine and Trade. He said it was legal for Iranian businesses to use cryptocurrency to pay for their imports. In a Friday report published in English by the Iranian Labour News Agency (ILNA), he was mentioned.
Salehabadi’s comments came after on Tuesday, Deputy Minister of Trade Alireza Peymanpak announced Iran’s first import order using cryptocurrency as a payment method. The government representative, who also leads the nation’s Trade Promotion Organization, revealed that the Islamic Republic bought $10 million worth of goods using digital coins.
Iranian authorities have yet to openly allow cryptocurrency payments in Iran. Earlier this year Reza Bagheri ASl, the Deputy Ministry of Communications, dismissed any hope for such an arrangement. Also, crypto investing and trading are strictly prohibited. The Iranian government has made stricter controls on local currency exchanges and allowed only licensed moneychangers and banks to purchase digital currency from Iran.
Numerous companies have been granted licenses to create digital currency like bitcoin since 2019, when Tehran authorities recognized mining as an industrial activity. The country’s growing blackouts and electricity shortages are being blamed on the nation’s energy-intensive production. These include the heat summers when cooling consumption is at its highest, as well as the winter when heating requirements increase.
As a consequence, all registered crypto farms were asked to stop using their energy-hungry equipment more than once in the last two year. While the Iran Power Generation Transmission and Distribution Company, Tavanir, pursued the illegal miners responsible for thousands of underground cryptocurrency farms.
Many illegal facilities are dependent on subsidised electricity. This kind of unlicensed mining was stifled by the utility last month. ILNA quotes Iranian officials as saying that a bitcoin mining machine can consume as much energy per household as 24 homes.
In his interview, Governor Salehabadi also turned viewers’ attention to the CBI’s plan to introduce a ‘crypto rial,’ or a central bank digital currency issued by the Iranian monetary authority which is expected to partially replace paper cash. In April, the central bank informed financial institutions about upcoming regulations pertaining to the issuance of a digital rial, indicating it’s preparing to pilot the CBDC.
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