Iranian government declares law for regulating cryptocurrency market

  • 05 August 2019, Monday, 15:50

What may come as a shock to the rising Iran’s population that participates in digital coin mining activities, the Iranian government announced a law aimed at regulating cryptocurrencies within its jurisdiction. This newly announced law was aimed at citing cryptocurrency-related trade activities as unlawful inside Iran’s border.

While the law underlined digital coin’s illegal status, the announcement highlighted that Central Bank of Iran will not guarantee the value of digital coins. Mining of digital currencies is still permitted, however, the miners are instructed to get approval from the Ministry of Industry, Mine and Trade. Furthermore, the law allows miners to carry out mining activities beyond the 30-kilometer range of provincial centers. This is in contrast to Tehran and the central city of Esfahan, that will be practicing stricter regulatory orders.

In order to regulate the mining activities, the current law applied electricity charges that are based upon the prices applied for the export of energy from Iran. According to the sources, mining farms were booming within the Iranian borders particularly in those regions where subsidiary offers were delivered. Amid Iran’s current orientation towards cryptocurrencies, the government acknowledged mining activities as a viable option for future income. This has led to speculations it can help Iran create a primary source of foreign currency, while taking advantage of the U.S. ban.