Crypto trading, investment in Iran illegal, central bank chief reiterates – Regulation Bitcoin News

It is illegal to buy or sell cryptocurrency in Iran, the head of the country’s monetary and credit administration recently reminded citizens and companies. However, the governor noted that mining cryptocurrencies and using them to pay for imports is not against the law in the Islamic Republic.

A top banker confirms that cryptocurrency trading is still illegal in Iran

Buying and selling cryptocurrencies or using digital assets for investment purposes is prohibited, Central Bank of Iran (CBI) Governor Ali Salehabadi told local media recently. At the same time, authorized persons and organizations can legally mine cryptocurrency, which can be used for international payments, the official noted.

Citing regulations adopted by the bank and other government agencies such as the Ministry of Industry, Mines and Commerce two years ago, the CBI chief clarified that Iranian companies can pay for imports with cryptocurrency. He was quoted by the English-language edition of Iran’s Labor News Agency (ILNA) on Friday.

Salehabadi’s comments came after Deputy Trade Minister Alireza Peymanpak announced on Tuesday Iran’s first import order using cryptocurrency as a payment method. A government official, who also heads the National Trade Facilitation Organization, said the Islamic Republic bought $10 million worth of goods using digital coins.

However, Iranian authorities are reluctant to allow cryptocurrency payments inside Iran, and earlier this year Deputy Communications Minister Reza Bagheri Asl dashed any hopes of doing so. Crypto trading and investment are also not allowed, and the government has cracked down on local exchanges, allowing only banks and licensed exchangers to use the Iranian-mined digital currency to pay for imports.

Since 2019, when Tehran authorities recognized mining as a legal industrial activity, a number of businesses have been licensed to mint digital currencies such as Bitcoin. But energy-intensive manufacturing has been blamed for increasing power shortages and blackouts across the country, especially during hot summers when consumption spikes due to rising demand for cooling, and in the cold winter months when heating is needed. to increase

As a result, registered crypto farms have been repeatedly ordered to shut down their energy-intensive equipment over the past two years, and Iran’s Electricity Generation, Transmission and Distribution Company Tavanir has been cracking down on illegal miners who have cracked thousands of underground cryptocurrencies. farms

Illegal facilities often operate on subsidized electricity in residential areas. Last month, the utility promised to take strict action against this type of unauthorized mining. ILNA cites an estimate by Iranian officials who claim that one Bitcoin mining machine consumes as much energy as 24 households.

In his interview, Governor Salehabadi also drew the audience’s attention to the CBI’s plan to introduce a “crypto-real” or central bank digital currency issued by the Monetary Authority of Iran, which is expected to partially replace paper cash. In April, the central bank informed financial institutions about upcoming regulations regarding the issuance of the digital riyal, indicating that it was preparing to pilot a CBDC.

Tags in this story

CBDC, CBI, Central Bank, Crypto, Cryptocurrency Mining, Cryptocurrency Payments, Cryptocurrency, Cryptocurrency, Digital Currency, Exchange, International Settlements, Iran, Iran, Mining, Payments, Buy, Rules, Sell, Settlement

Do you think Iran might change its stance on cryptocurrency trading, investing and payments in the future? Share your expectations in the comments section below.

Lubomyr Tasev

Lubomyr Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am, not what I do.” Apart from cryptocurrency, blockchain and fintech, international politics and economics are two other sources of inspiration.

Authors of images: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any loss or damage caused or likely to be caused by the use of or reliance on or in connection with any content, goods or services mentioned in this article .

Leave a Comment

Your email address will not be published.