Iran introduces legal framework for crypto despite ongoing mining ban
This week, the Iranian government issued a statement regarding the need for a legal framework for crypto activities in the country.
President Hassan Rouhani said that the economic intelligence program is a “requirement”To preserve and protect the country’s national interests. The statement comes as the field of digital currencies and emerging blockchain technology are increasingly in the limelight. Iran joins various countries to accelerate the understanding and development of the cryptography-based legal infrastructure needed to stay on top of the space.
However, this is not the first time that Iran has considered crypto regulations. Mid-2020, lawmakers prompted the country’s central bank to take digital currency issues more seriously.
The recent statement doesn’t just mention the impending legal developments involving crypto. Rouhani also stressed the need to educate the population. He called it “necessary” and warned people not to enter the space out of ignorance or unprofessionalism.
“The agencies responsible in the field of capital markets should cooperate with the media and cyberspace in the field of information, education and public awareness on this phenomenon and its instructions and laws.
At the start of the global pandemic, Iran made friendly comments towards cryptocurrencies. The Minister of Health encouraged the whole country to avoid using physical money and use digital currencies. Of course, at the time, the reason being social sanitation practices. However, the commentary confirms the still attractive use cases of digital currencies nonetheless.
Crypto mining ban continued
Despite these cryptographic comments from the Iranian head of state, cryptocurrency mining remains prohibited. At least until the end of summer, that is to say. The president clarified that the position on mining has not changed. The Ministries of Communication and Information Technology and Energy remain responsible for the conservation of electricity from known mining facilities.
Crypto mining in Iran has taken off due to the country’s low electricity prices. In recent years, the number of mining operations has increased. As a first step, the government undertook to create a strategy in order to capitalize on development.
However, the position on mining continues to be precarious. At the start of this year, the government fined on local miners for the use of domestic electricity to run their operations. Following the imposition of fines, reports have noted the government using spies to find out about minors and their illegal operations. A few weeks ago, the country faced progressive power outages, which prompted miners to stop their operations. The government issued a statement that included the implementation of fines for those caught in mining.
As Iran makes room for crypto legislation, it remains uncertain whether the country can be a hospitable environment for a larger crypto community.