New Iranian law: the government does not recognize cryptocurrency-related transactions, but allows for conditional mining

According to Presstv, the Iranian government has enacted a new cryptocurrency market regulation rule as more and more people adopt digital currency as a way to obtain international currency in response to US sanctions.

On August 4th, a bill approved and promulgated by the Iranian cabinet stated that the Iranian government would not recognize that any trading activity using cryptocurrency in Iran is legal. The government and the banking system will not treat digital currencies as legal tenders, and the Iranian central bank will not guarantee their value.

However, the bill says that under certain conditions, digital currency will be allowed to be mined in Iran. For example, if the miners are approved by the Iranian Ministry of Industry, they can mine outside the 30-kilometer boundary of all provincial centres, but exclude the capital Tehran and the central city of Isfahan, as these two places impose stricter restrictions.

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The bill also stated that miners should abide by the rules set by the Iranian Standardization and Communications Department for mining machines and pay a certain amount of energy costs for mining. Specifically, authorized mines should pay for electricity or natural gas for electricity generation based on Iranian energy export prices.

The mine will pay the same taxes as industrial manufacturing units unless the owner returns the money earned from his digital currency export to Iran's economic cycle. The bill said that if a foreigner wants to establish a mine in the Iranian Special Economic Zone, the Iranian Ministry of Industry will delegate authority to the relevant departments of the special economic zone.

More than a month ago, there were reports that mines were emerging in places where Iran provided electricity supply subsidies.

Although certain restrictions have been imposed on the mines, the authorities have hinted that they will recognize cryptocurrency mining because Iran, which faces US sanctions, needs access to foreign exchange.

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