Iranian Government Approves ‘Comprehensive and Detailed’ Crypto Regulations – Regulation Bitcoin News

Iran’s government approved cryptocurrency regulations. A “comprehensive and detailed” law ratified by the administration provides a regulatory framework for cryptocurrency, including their authorized usage and crypto mining, a government official reportedly said.

Iran approves Crypto Regulations

Reza Fatemi Amin, minister of Industry, Mines and Trade, stated that Iran has reviewed all issues related to cryptocurrency and had approved a set regulations. She spoke at Sunday’s conclusion of an event for the automotive industry in Tehran.

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

According to the minister, cryptocurrency could be used for payment of imports under an agreement made between his ministry with Iran’s central bank. He also noted that businesses can use cryptocurrencies to import vehicles instead of dollars or euros.

To pay imports with cryptocurrency, Iran can use it as a means to bypass U.S. financial and banking sanctions. This allows Iran to trade freely with other countries that are similarly under U.S. embargoes, such as Russia.

Iran International published the following quote from Minister Fatemi-Amin:

All issues that relate to crypto-assets including how to give fuel or energy and how to issue and grant licenses have been addressed.

Earlier this month, Alireza Peymanpak, vice minister of Iran’s Ministry of Industry, Mine, and Trade and president of the country’s Trade Promotion Organization (TPO), said the first official import order was successfully placed with 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.”

He noted that Iran has many illegally operating mining farms. He said that crypto-miners had been previously authorized and licensed to work in Iran. But, they were later stopped from operating. Fatemi Amin stated that government had decided to resume issuing crypto mining licenses under new regulations.

Iran and cryptocurrencies have a complicated relationship. The Iranian central bank had banned cryptocurrency trading within the country in August 2019. However, the government allowed use of crypto currencies, such as bitcoins, to purchase imports. However, the authorities are not revealing which other crypto currencies can be legally used to pay for imports.

In August 2019, Iran legalized cryptocurrency mining. In August 2019, Iran also legalized cryptocurrency mining. It established a licensing structure for crypto miners. This required them to apply for authorization, to identify themselves and to pay more for electricity. Finally, they had to sell the mined bitcoins to government directly.

However, in December last year, the Iranian government ordered licensed cryptocurrency miners to temporarily stop operations due to extreme weather taking a toll on 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 accounted for nearly 85% of the industry’s power consumption. In May, Iran’s national electricity company declared a ban of crypto mining for four months. After licensed crypto mining companies voluntarily closed their doors, the authorities lifted the ban on mid-September.

What do you think about Iran approving “comprehensive and detailed” cryptocurrency regulations? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.

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