Iran is trying to ban cryptocurrency payments from abroad. Information Iran International reported.
Iran wants a partial ban on cryptocurrency payments
Iran’s Central Bank on Wednesday announced the government’s decision that digital currencies traded in the country must be mined in Iran, ruling out the exchange of digital assets mined abroad.
While many analysts, however, point out that law enforcement is nearly impossible, blockchain attorney and advisor Fatemeh Fannizadeh noted that the ban could primarily target banks and forex entities using cryptocurrencies to pay for imports.
I don’t think it will be enforced on an individual level. Exchange platforms can basically not operate. But instead of a blanket ban, it allows banks! and forex offices to use Iranian crypto for international transfers. Iran is not connected to the SWIFT network…
– Meh (@Fatalmeh) May 6, 2021
Recall that at the end of April, the Central Bank of Iran ratified regulations that will allow banks and other financial institutions to use cryptocurrencies to pay for imports. Under these laws, institutions can purchase cryptocurrencies from state-licensed mining operations. This new regulation appears to be intended to ensure that only cryptocurrencies mined in government approved mines will be used in this very process.
Cryptocurrencies help circumvent economic sanctions
Since 2019, regulatory authorities in Iran have issued over a thousand licenses for cryptocurrency mining facilities, including a Turkish-led unit with six thousand. excavators.
The new regulations may be part of a broader strategy to circumvent US sanctions. Iranian research institute Majlis Research Center has previously called on the government to use cryptocurrencies to circumvent the economy’s devastating restrictions:
According to experts, one of the ways to avoid the negative effects of unfair sanctions is to use cryptocurrencies in foreign trade.
Western media, however, indicate that mining BTC in Iran is not beneficial for the environment. According to report Bloomberg, Bitcoin’s energy demand and cryptocurrency mining in the country, coupled with the need for heat, contributed to the shortage of natural gas, forcing power plants to burn “low-yield heating oils” to meet the country’s energy needs. The result was “thick layers of toxic smog” in many Iranian cities and power cuts.