Iran’s new bill might spell trouble for foreign-mined digital currencies

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Jul 3, 2021
  • Iran is preparing to bring a new crypto bill which might have significant consequences on the use of crypto.
  • According to local reports, the bill will prohibit the use of any crypto that is not locally mined.
  • This comes as the latest attempt by the country to take control over crypto mining and use in Iran.

The authorities around the world seem to finally be getting serious about cryptocurrencies, but while some countries are looking to regulate them, like the US, or even adopt them, such as El Salvador — others are not so friendly towards them. Over the years, there have been numerous reports of countries like China and India doing everything in their power to ban crypto or make it very impractical to own and use.

Now, Iran opted to join that group, with its lawmakers allegedly trying to establish a legal framework that will only allow cryptocurrencies from state-licensed mining operations to be used. In other words, Iran is trying to ban the use of any foreign-mined cryptocurrency.

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While this is not precisely banning cryptos completely, it is certainly limiting when it comes to the broader crypto industry. This new bill, drafted by the country’s Parliament Commission on Economy, will also provide a clearer legal framework for cryptocurrency miners in Iran.

The consequences of the new law

The bill was reported yesterday, July 2nd, by the Tasnim News Agency. The report said that bill is known as ‘Support for cryptocurrency mining and organizing the domestic market for exchanges.’ The bill was originally announced only a little over a month ago, on June 23rd. If passed, it would mean that the country’s central bank will become the sole regulatory authority for crypto exchanging in the entire country.

The bank would have the authority to prohibit the use of any and all digital currencies for payments, other than the national crypto. This would mean the country’s CBDC, as well as tokens minted in the private sector. However, the statement could also mean that licensed entities within the country could also have their coins allowed to be used for payments.

Another thing that can be taken from the bill is the fact that crypto mining will be placed under the regulatory purview of the Ministry of Industry, Mine, and Trade. The ministry would, therefore, be able to grant licenses for crypto mining farms. More and more, crypto mining in Iran is becoming a legitimate industrial activity, which has been legal in the country since 2019, provided that the miners are licensed and regulated.

Anyone who tried to run a mining farm without a proper license has been identified by the government, which has been stepping up its raids over the last two years.

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