• Iran tries to regularize cryptocurrency mining with the Ministry of Industry.
• CAATSA sanctions against Iran boost the crypto market in the country.
Governments around the world have a different perspective on the new technology in charge of cryptocurrencies. This new financial ecosystem promises growth that could end inflation in some countries.
Among the cryptocurrencies promoters is the El Salvador government that admitted Bitcoin as a legal currency. But Iran took these unconventional measures to improve its economy by focusing on cryptocurrency mining.
Iran and its relationship with cryptocurrency mining
It is no coincidence that the Iranian government took over cryptocurrencies and did not develop such a strict regulatory scheme. This occurs because Iran is affected by the US CAATSA sanctions. This regulatory measure prohibits US companies from doing business in the country, which causes an imbalance in its economy.
Since the USD is the currency with which many economies are governed, Iran opened its doors to cryptocurrencies. The government tries to legalize cryptocurrency mining as an economic strategy. However, this measure will be imposed under Iranian government terms.
First, the Iranian parliament thinks about approving cryptocurrency mining if the central bank commands it. This causes the Iranian central bank to be the regulatory authority for cryptocurrency trading. In addition, the cryptocurrencies supported in the country can be restricted without prior notice, except the national virtual currency.
The second rule that parliament raises to approve cryptocurrency mining is that the Minister of Industry will govern it. Therefore, miners must apply for a license granted by the Ministry of Industry and the Energy Ministry.
Is Iran trying to be equal to China?
Regulations on cryptocurrency mining are constant in this new year, mainly by the authorities in Beijing. Many crypto experts claim that Iran tries to be equal to China in the regulatory sense, but they can be wrong.
The Chinese government has partially banned the cryptocurrency market, and it is even illegal to talk about them on social media. But Iran admits to trading the tokens for a long time and even allows mining. However, the country’s authorities want to capitalize on the growing Bitcoin boom.
In the first months of the year, the government clarified that it was one promoter of crypto mining. But, this attracted many companies causing massive power failures across the country. Because of this, the energy ministry banned crypto mining until July for repairs.
Now that the clause is broken and Bitcoin miners are eager to work, the government is launching the announcements. Mining companies may accept this proposal if the Iranian government keeps its word. Iran is also great for crypto mining for its low energy costs and few regularizations.