Iran Tightens Cryptomining Regulations and Expands Crypto Use for Imports

  • Sergey Maga
  • 16:00 Mar 16, 2023
  • 129
Iran Tightens Cryptomining Regulations and Expands Crypto Use for Imports

The Iranian government has recently approved a set of cryptocurrency regulations, providing a regulatory framework for authorized usage and crypto mining. Owners of cryptomining hardware are now required to register personal data and the location of their mining centers. Random inspections will be conducted to ensure the validity of registered data and increase transparency in authorized miners' operations. Violations of these rules, such as failing to register locations or changing locations without reporting, will result in fines.

In June 2021, Iran's Industry and Trade Ministry granted operating licenses to 30 crypto mining centers in the country. The ministry also approved the use of cryptocurrency for imports, a significant move considering the ongoing international trade sanctions against Iran. Cryptocurrencies and smart contracts are expected to play a major role in foreign trade with target countries.

Despite these developments, Iran's relationship with cryptocurrencies remains complex. The Iranian central bank banned crypto trading inside the country in August 2019. Furthermore, in June 2022, electricity to all 118 government-authorized mining operators was cut off ahead of seasonal spikes in power demand. This action by Iran's Energy Ministry aimed to prevent legally imported hardware from being used in unlicensed cryptomining centers, but it sparked controversy among authorized miners who claimed they were not given sufficient notice about the power cuts.

In summary, Iran is taking measures to regulate its cryptocurrency industry by requiring registration and inspections of mining centers while also approving the use of cryptocurrencies for imports. However, challenges remain, including power cuts affecting authorized miners.

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