Due to the growing popularity of cryptocurrencies, Iranian lawmakers have prepared new laws to introduce comprehensive rules for the expanding industry. While the bill effectively bans crypto payments in the country, it aims to aid mining of cryptocurrencies and regulate the foreign exchange market.
Bill bans crypto payments in Islamic Republic
Members of the Islamic Consultative Assembly, the Iranian Parliament, now have a plan to put the crypto room in order. The new bill, drafted under the supervision of the parliamentary economic commission, assigns responsibilities to the regulators and answers some open questions to determine the future of cryptocurrencies in Iran.
The draft law, if adopted in its current version, would prohibit the use of cryptocurrencies as a means of payment in the Islamic Republic, reported the Tasnim news agency. In addition to crypto payments, other domestic transactions with cryptocurrency would also be prohibited. The Iranian legislature has only provided one exception, which is reserved for a state-issued digital currency (CBDC).
The Iranian Central Bank (CBI) is expected to take over the supervision of the crypto market within three months after the bill is passed. The financial institution will also regulate the exchange of cryptocurrencies in the country. Iranian authorities have been trying to curb crypto trading for the past few months, but the CBI has authorized domestic banks and exchange exchanges to use Iran-mined cryptocurrency for import payments.
Iranian regulations to support cryptocurrency mining
The legislation unveiled in Majlis, Iran has also been described as a plan to encourage “support for cryptocurrency mining and the organization of the domestic market for exchanges,” noted Tasnim. In contrast to digital coin trading, crypto mining has been a legal activity for licensed Iranian companies for around two years.
According to the draft, Iranian cryptocurrency miners will in future be allowed to participate in projects to build and operate new power plants. For this purpose, licensed mining companies must obtain special permits from the Ministry of Energy, according to the detailed report. Miners can even sell excess energy generated by their stations.
The Iranian Ministry of Industry, Mining and Trade will exercise regulatory control over the crypto-mining industry, the bill postulates. The department will continue to be responsible for issuing the licenses required to set up and operate new cryptocurrency mining farms.
The lack of comprehensive regulations and various restrictions have hampered the development of the Iranian crypto industry in recent months. In May, Majlis’s leadership urged financial regulators to handle the complex issue with caution. In June, the country’s economy and finance minister, Farhad Dejpasand, stated that the government cannot meddle in the development of crypto technologies for too long.
What do you think of the proposed crypto regulations in Iran? Let us know in the comment section below.
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