The government of Iran has established a thorough regulation governing the use of cryptocurrencies in foreign trade.
On Sunday, during an auto show in Tehran, Iran’s Minister of Industry, Mines, and Commerce Reza Fatemi Amin revealed that the country has established thorough legislation to regulate the use of cryptocurrencies in trade.
To quote Amin, “all the concerns associated with crypto-assets were devised, including the provision of fuel and electricity [for mining] and the assignment and granting of licenses.” The legislation was drafted by Iran’s Ministry of Industry and Central Bank to permit the use of cryptocurrency for payment of imports. Businesses in Iran, not only banks and corporations, will be subject to the legislation.
Foreign exchange transactions in Iran have historically included only the U.S. dollar and the euro. U.S. sanctions against Iran date back to 1979; after Iran refused to halt its uranium enrichment program in 2006, they became among the strictest in the world.
Iran International, a local daily, predicts that cryptocurrency would be used to avoid sanctions and facilitate commerce with other banned nations like Russia. The Russian central bank has already shown some interest in the prospect of accepting cryptocurrency for foreign transactions.
Iranian Vice Minister of Industry, Mine, and Trade Alireza Peyman-Pak said on August 9 that the government has completed its first import using cryptocurrency.
Bitcoin miners have also been drawn to Iran by its cheap power. Bitcoin mining is now allowed in Iran, however, the government has mandated that mining machines be shut down “during peak usage hours.” The plan mirrors the approach Texas used with its own mining sector.