Reza Fatemi-Amin, the minister of Industry, Mines, and Trade, told reporters at the end of an automobile industry event in Tehran on Sunday that the Iranian government has examined all concerns connected to cryptocurrencies and adopted a set of cryptocurrency legislation.
According to an Iranian news source, he stated that the government has approved a “comprehensive and detailed” law that specifies cryptocurrency restrictions, including the use of fuel and power for crypto mining and the permitted uses of cryptocurrencies.
The minister noted that bitcoin can be used to pay for imports by a deal his ministry and the Iranian central bank had made. He added that rather than utilising the US dollar or the euro, local business owners might import cars using cryptocurrencies. The use of cryptocurrencies to pay for imports is said to be a technique to get over U.S. restrictions placed on Iran’s banking and finance industry, allowing Iran to trade with nations.
The first formal import order was successfully placed with cryptocurrencies worth $10 million, according to Alireza Peymanpak, vice minister of Iran’s Ministry of Industry, Mine, and Trade and president of the nation’s Trade Promotion Organization (TPO). By the end of September, smart contracts and the use of cryptocurrencies would be common in international trade with target nations, he continued.
Numerous mining farms are functioning illegally in Iran, according to the minister of industry, mines, and trade. He clarified that certain cryptocurrency miners had already obtained licences and authorizations to work in the nation. But soon after, their operations were stopped. According to Fatemi-Amin, the government has chosen to resume providing licences for cryptocurrency mining businesses under the new regulatory framework.
As per the minister, solutions have been found for all problems associated with crypto-assets, such as how to supply fuel and energy as well as how to assign and issue licences.
The Iranian central bank outlawed cryptocurrency trading within the nation in August 2019, but since then, the government has permitted the use of cryptocurrencies like bitcoin to pay for imports. The other cryptocurrencies can be used legally for this purpose but have not yet been disclosed by the government.
In August 2019, bitcoin mining was also made legal in Iran. The nation subsequently created a licencing structure for cryptocurrency miners, requiring them to apply for licences, provide identification, pay higher electricity prices, and sell their generated bitcoins to the government directly.
The Iranian government did, however, instruct authorised cryptocurrency miners to temporarily cease operations in December of last year since the country’s electrical grid was suffering from the effects of extreme weather during the cold months.
Iran Power Generation, Distribution, and Transmission Company say that over 85% of the country’s energy usage is used for illegitimate cryptocurrency mining. The Iranian government did, however, instruct authorised cryptocurrency miners to temporarily cease operations in December of last year since the country’s electrical grid was suffering from the effects of extreme weather during the cold months.
In May, a four-month ban on cryptocurrency mining was then declared by the national electrical utility. After authorised crypto mining facilities voluntarily shut down their operations to reduce the electricity demand, the authorities lifted the restriction in the middle of September.