After a cabinet meeting on Sunday, Iranian authorities have passed a new bill which classified any and all cryptocurrency transactions within the country as illegal tender and will not be recognized by the central bank.
This bill comes right after Iran legalized crypto mining in the country and recognized it as a legitimate industry. However, people willing to partake in this business will have to apply for a license with the local Ministry of Industry.
Although such a decision was more than expected from Iranian authorities, several crypto mining firms were left disappointed as the legalization of mining was an indication of the legalization of trading.
Although that may be true, nobody said that the legalization of crypto trading in Iran would be happening this month or even this year. Therefore there is still hope.
When it comes to crypto mining though, firms will still have to pay the export price on electricity based on how much they use. The only way they can be exempt from government tax though would be if they somehow revert the profits gained from exporting mined cryptocurrency back to the Iranian economy.
Many could say that Iran is the best place to mine cryptos, but it’s definitely not the case. The electricity payments, looming taxes, and a ban on mining hardware imports do not outweigh the legalization in no measurable manner.