Key Takeaways
- Iran lawmakers contemplating new crypto bill
- Crypto bill bans crypto payments within Iran
- Iranian crypto mining industry to benefit from the proposed regulations
Iran's parliament has put together a bill that will provide a legal framework for cryptocurrencies. The Bill was drafted with consultation from the parliamentary Economic Commission and articulated the responsibilities of regulators regarding different aspects of cryptocurrencies in the country.
The Bill as currently constituted would mean a blanket ban on cryptocurrency payments in the Asian nation. It also prohibits domestic transactions in crypto and allows for an exception for the National digital currency.
The Bill also mandates the Central Bank of Iran to serve as the primary regulator of the crypto industry. In addition, the Apex bank will also regulate the limited exchange of cryptocurrencies within the country.
Iran recently allowed banks and exchangers to use cryptocurrencies mined to settle cross-border payments for imports. This was seen by many as a means to circumvent US sanctions placed on the country.
A significant aspect of the new Bill is its focus on developing the crypto mining industry. Iran is the home of several mining companies that leverage the extra power generated to mine profitable coins like Bitcoin and Ethereum.
The government has cracked down on many of the illegal mining farms in a bid to regulate the industry. The new Bill provides a framework for the mining industry to develop with incentives placed by the government.
Mining companies will be permitted in future to construct and operate new power plants. However, miners will have to take special licenses from the Ministry of Energy, and they can sell surplus energy generated to local companies.
This proposed Bill is a double-edged sword that limits crypto payments while promoting the mining industry.
What is your opinion on the proposed Iran crypto Bill?
