It is illegal to buy or sell cryptocurrencies in Iran. The head of the country’s monetary authority recently reminded citizens and businesses. The governor noted. But that mining cryptocurrencies and using them in payments for imports is not against the law in the Islamic Republic.
Top Banker Confirms Cryptocurrency Trading Remains Illegal in Iran
The buying and selling of cryptocurrencies or the use of digital assets for investment purposes are prohibited. The governor of the Central Bank of Iran (CBI), Ali Salehabadi, recently told local media. Authorized individuals and entities can mine cryptocurrencies for international settlements, the official noted.
The CBI chief explained that it is legal for Iranian companies to pay for imports with cryptocurrencies. Referring to regulations adopted by the bank and other government institutions such as the Ministry of Industry, Mines, and Trade two years ago. He quotes in a report from the English edition of the Iranian Labour News Agency (ILNA) on Friday.
Salehabadi’s comments came after. Deputy Commerce Minister Alireza Peymanpak announced Iran’s first import order. Iran’s first import order used cryptocurrencies as a payment method on Tuesday. The government representative also heads the nation’s Trade Promotion Organization. It reveals that the Islamic Republic bought goods worth $10 million using digital currencies.
Since 2019 Tehran authorities recognized mining as a legitimate industrial activity. Several companies have received licenses to mint digital currencies such as bitcoin. Energy-intensive production is blamed as one of the causes of growing electricity shortages. It is also the reason for blackouts across the country. During hot summers, when consumption increases due to increasing demand for cooling, and the cold winter months, when heating needs increase.
As a result, registered crypto farms were told to shut down their energy-hungry equipment on more than one occasion in the past two years. Iran’s Power Generation, Transmission, and Distribution Company, Tavanir, went after illegal miners. He destroyed thousands of underground crypto farms.
In his interview, Governor Salehabadi also directed viewers’ attention to the IWC’s plan to introduce a “crypto rial,” Central bank digital currency issued by the Iranian monetary authority expects to replace paper cash. In April, the central bank informed financial institutions about upcoming regulations on the issuance of a digital rial, indicating that it is preparing to test CBDC.