Bitcoin in Iran: New Laws Planned for Crypto Exchanges

It was only at the end of June that the Iranian government granted permission for Bitcoin miners to resume operations in Iran. Now, legislative changes could also follow that would benefit crypto exchanges – because the legal situation in Iran regarding Bitcoin and Co. remains unclear.

Actually, bitcoin mining had already been permitted in Iran for two years. But power outages due to energy-intensive mining caused authorities to take action against many mining operations. Although the government took action against illegal mining centers, in this case, legally established centers also had to temporarily shut down operations until things could finally continue.

This action led to calls for the proper regulation of the crypto industry. In June, Iranian President Hassan Rouhani stressed the need to legalize cryptocurrency activities to preserve and protect national interests.

During the Cabinet’s Economic Coordination Board meeting, he stated: “To legalize cryptocurrency activities and protect people’s capital in this field, we need to find a solution as soon as possible and establish and communicate the necessary laws and instructions.”

Read more about the crypto sector in Iran and find the latest business news with our companion app Born2Invest

Bitcoin payments in Iran are not allowed

In July, lawmakers proposed a bill aimed at bringing order to the crypto industry. The bill aims to support the mining of cryptocurrencies. At the same time, it aims to regulate the exchange market. However, payments in the form of Bitcoin and Co. will be banned in Iran in terms of time.

The Iranian Vice Presidency for Legal Affairs recently issued a statement on what rules apply to a cryptocurrency exchange. This was in response to a request from Iran’s Information and Communications Technology Authority.

The association had asked for clarification on the applicable crypto regulations. The presidential legal team noted that the law states that cryptocurrencies cannot be used for payments within the country. It pointed out that the current rules are in line with the country’s monetary and banking legislation and stated:

“Exchanging one cryptocurrency for another digital currency is not illegal.”

Regulations are important so that crypto exchanges can also plan for the long term in their respective countries. The lack of regulation and thus corresponding lack of licenses as financial service providers makes it much more difficult for Exchanges like Binance, for example.

__

(Featured image by sergeitokmakov via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.