Reza Fatemi-Amin, the minister of Industry, Mines, and Trade, informed reporters after a gathering for the automotive sector in Tehran on Sunday that the Iranian government has examined all concerns connected to cryptocurrencies and had adopted a set of regulations in this area.
He stated that the government had ratified a comprehensive law defining cryptocurrency restrictions, including using fuel and power for crypto mining and the permitted uses of cryptocurrencies, Tasnim news reported.
The minister noted that his ministry and the Iranian central bank’s deal could use bitcoin to pay for imports. He added that rather than utilizing the US dollar or the euro, local business owners might import cars using cryptocurrencies. Using cryptocurrencies to pay for imports is a technique to get over U.S. restrictions placed on Iran’s banking and finance industry, allowing Iran to trade with nations similarly subject to U.S. sanctions, like Russia.
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). He continued that smart contracts and the use of cryptocurrencies would be pervasive in international trade with target nations by the end of September.
According to the minister of industry, mines, and trade, numerous mining farms are functioning illegally in Iran. He clarified that certain cryptocurrency miners had already obtained licenses and authorizations to work nationwide. But soon after, their operations were stopped. According to Fatemi-Amin, the government has chosen to resume providing licenses for cryptocurrency mining businesses following the new regulatory framework.
In August 2019, crypto mining was made legal in Iran. The nation subsequently created a regulatory framework for cryptocurrency miners, requiring them to apply for licenses, provide identification, pay higher electricity prices, and sell their mined bitcoins exclusively to the government.
However, the Iranian government ordered authorized cryptocurrency miners to temporarily cease operations in December 2021 because of the adverse effects of harsh weather on the nation’s electrical grid during the chilly months. After authorized crypto mining facilities voluntarily shut down their operations to reduce the electricity demand, the authorities lifted the restriction in the mid of September.
