New Bill To Ban Crypto Payment In Iran, Support Mining And Regulate Exchange

Members of the Islamic Consultative Assembly, the Iranian parliament, now have a plan to put the crypto space in order. Iranian Parliament Commission on Economy aims to restrict the use of cryptocurrencies within the country while providing a clearer legal framework for miners.

The Central Bank of Iran (CBI) is to take charge of monitoring the crypto market within three months of the adoption of the bill. The monetary institution will also regulate the exchange of cryptocurrencies in the country. Iranian authorities have tried to curb crypto trading over the past few months, but the CBI has authorized domestic banks and exchangers to use cryptocurrencies mined inside Iran to pay for imports.

Tasneem said the law presented in the Iranian Majlis also described a plan to promote “support for cryptocurrency mining and the conduct of a domestic market for exchanges”. Unlike digital coin trading, crypto mining has been a legal activity for licensed Iranian companies for almost two years.

According to the draft, Iranian cryptocurrency miners will in the future be allowed to participate in projects to construct and operate new power plants. To do that, authorized mining companies will need to acquire special permits from the Ministry of Energy, the report detailed. Miners will even be able to sell surplus energy generated by their stations.

Iran is not the first country to issue a blanket ban on crypto transactions. Back in April, the Central Bank of the Republic of Turkey issued a ban on the use of Bitcoin and other cryptos for transactions.

The lack of comprehensive regulations and various sanctions have hindered the growth of Iran’s crypto industry over the past few months. In May, the Majlis leadership called on financial regulators to take a cautious approach to deal with the complex issue. In June, the country’s economy and finance minister Farhad Dejpasand said that the government could not interfere with the development of crypto technologies for too long.