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Bitcoin in Iran: New Laws Planned for Crypto Exchanges

In July, lawmakers in Iran 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 issued a statement on what rules apply to a crypto exchange.

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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.”

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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.

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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.

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(Featured image by sergeitokmakov via Pixabay)

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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.

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Arturo Garcia started out as a political writer for a local newspaper in Peru, before covering big-league sports for national broadsheets. Eventually he began writing about innovative tech and business trends, which let him travel all over North and South America. Currently he is exploring the world of Bitcoin and cannabis, two hot commodities which he believes are poised to change history.