Lawmakers appear to be aiming to put a legal framework in place to support the Central Bank of Iran’s decision only to accept crypto from state-licensed mining firms for payment.
The Iranian Parliament Commission on Economy has proposed a new measure that intends to restrict the usage of cryptocurrencies in the country while also providing a clearer legal framework for miners.
According to the bill, all cryptocurrencies might be banned from being used for payments in Iran, except for a “national” cryptocurrency — ostensibly a central bank digital currency or private-sector tokens. However, the comment could be referring to crypto mined by licensed firms in Iran, as the Central Bank of Iran has already stated that it is working to ensure that all digital currencies sold in the nation are mined on Iranian farms.
The proposed measure would also put crypto mining under the regulatory control of the Ministry of Industry, Mine, and Trade, allowing it to issue farm licenses. In addition, licensed mining corporations with partial or complete control of a power plant could apply to the country’s Energy Ministry to sell any excess electricity.
Since 2019, crypto mining as industrial activity has been legal in Iran, as long as miners are registered and regulated appropriately. Iranian President Hassan Rouhani, on the other hand, said in May that mining operations would be banned until September. Moreover, as the country faces increased demand for electricity during the summer months, authorities appear to be ratcheting up their raids on unlicensed miners tapping into the power grid.
At a meeting of his cabinet’s Economic Coordination Board in June, Rouhani emphasized that legalizing bitcoin was necessary to defend and promote national interests. The president proposed a collaborative study of capital markets and news agencies to develop a legal framework for cryptocurrencies.