New Regulations for Cryptocurrency Introduced in Iran

The Iranian government announced its new regulations on cryptocurrencies and mining on Sunday for the cryptocurrency market after many months of the debate. The new law says that Iran will not be accepting cryptocurrencies as legal tender nor would recognize domestic transactions carried out with the cryptocurrencies.

However, the bill stated that the cryptocurrency mining would be allowed inside the country with few conditions, that includes that the miners should have approval from Iran’s industry ministry. And the miners cannot mine the cryptocurrencies outside the 30-kilometer boundary of all the provincial centers except for the capital Tehran and the central city of Esfahan. Also, the use of electricity or other natural resources has been banned during the peak hours for cryptocurrency mining, and the fees for all the cryptocurrency mining operations will increase. The actual rates will be revealed by The Ministry of Energy and the Ministry of Oil in the coming days.

The report further said that the profits earned with the cryptocurrency mining should be returned to Iran’s revenue. This would prove to be helpful to Iran’s economy.

This new law followed by the comments of the deputy governor of Iran’s Central Bank who did announce that buying and selling cryptocurrencies such as Bitcoin was illegal. However, with the increase in popularity of the cryptocurrencies, Iran has now announced the launch of a cryptocurrency to overcome the impact of the US trade sanctions.

Earlier, it was revealed that four of the Iranian companies were working with a technological company Ghoghnoos to launch its own digital currency based payment system called the PayMon – a gold-backed token based on the Stellar network. This proves that Iran is now severe about cryptocurrency and the announcement of new rules might, however, prove to be good for the country’s economy as well.