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

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

Iran Finalizes Crypto Regulations

The Iranian government has evaluated all issues related to cryptocurrencies and approved a set of cryptocurrency regulations, Reza Fatemi-Amin, the Minister of Industry, Mines and Trade, told reporters at the end of an automotive industry event in Tehran on Sunday.

He explained that the government has ratified a “comprehensive and detailed” law defining cryptocurrency regulations, including the use of fuel and electricity for crypto mining and the authorized 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 similarly subject to US sanctions, including Russia.

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

All issues related to crypto-assets, including how to supply fuel and energy, and how to allocate and license, were developed.

Earlier this month, Alireza Peymanpak, deputy minister of Iran’s Ministry of Industry, Mines and Trade and president of the country’s Trade Promotion Organization (TPO), said the first official import order was 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, Mines and Trade noted that many mining farms operate illegally in Iran. He explained that some crypto miners were previously licensed and authorized to operate in the country. However, their operations were later halted. Fatemi-Amin said the government has decided to resume issuing crypto mining licenses under the new regulations.

Iran has a complex relationship with cryptocurrencies. In August 2019, Iran’s central bank banned crypto trading in the country, but the government has since allowed the use of cryptocurrencies, such as bitcoin, to pay for imports. The authorities have not stated 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 crypto miners, requiring them to obtain authorization, identify themselves, pay higher tariffs for electricity, and sell their mined bitcoins directly to the government.

Last December, however, the Iranian government ordered licensed cryptocurrency miners to temporarily halt operations due to extreme weather that took a toll on the country’s power grid during the cold months. Tavanir, Iran Power Generation, Distribution and Transmission Company claimed that illegal cryptocurrency mining in Iran accounted for nearly 85% of the industry’s electricity consumption. The national power company then announced a four-month ban on crypto mining in May. Authorities lifted the ban in mid-September after licensed crypto mining facilities voluntarily shut down operations to ease the electricity burden.

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

Kevin Helms

A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.