Lawmakers in Iran are trying to establish a new legal framework for cryptocurrency mining. It is about the Central Bank of Iran idea that citizens of the country can only use digital currencies that have been mined through state-licensed mining operations. It is possible that this is also an introduction to the issue of the Iranian CBDC.
Iran and the idea of a new cryptocurrency law
The prepared bill may therefore prohibit the use of cryptocurrencies that have not been mined in Iran.
The new law is being prepared by the Economy Committee of the Iranian parliament and aims to limit the use of cryptocurrencies, while providing a clearer legal framework for the miners themselves.
According to Friday’s report by the news agency Tasnim, lawmakers drafted a bill entitled “Support for Cryptocurrency Mining and National Exchange Market Organizations”, which the country’s parliament first announced on June 23.
Under the law, all cryptocurrencies may be banned in Iran, with the exception of “domestic” ones – a potential central bank’s digital currency or tokens mined domestically in the private sector. The media suggests the regulations may also apply to cryptocurrencies mined by licensed entities in Iran, as the Central Bank of Iran previously said it was trying to ensure that all digital currencies traded domestically are mined from local mines.
Cryptocurrencies in Iran
Cryptocurrency mining – as an industrial activity – has been legal in Iran since 2019. However, miners in the country must obtain a special license and meet regulatory requirements.
Iranian President Hassan Rouhani announced in May that cryptocurrency mining operations would, however, be ultimately prohibited. The authorities have also stepped up control raids on unlicensed miners connecting to the power grid. Reason? The country is struggling with increasing energy demand in the summer months.
In June, Rouhani said Iran must legalize cryptocurrencies to preserve and protect national interests. He stated this at a meeting of the Economic Coordination Council of his cabinet. The president called for participation in the Council’s joint study on capital markets. Everything to establish a legal framework for cryptocurrencies.