IRAN: Proposed Bill Could Ban All Foreign-Mined Crypto

The Iranian Parliament has just come out with a bill draft that aims to restrict the use of crypto within the country. The new bill also provides a legal framework for miners.

As per reports from the Tasnim News Agency, the bill is titled “Support for cryptocurrency mining and organizing the domestic market for exchanges.” The legislation will make Iran’s central bank the regulatory authority for the exchange of cryptocurrencies in the country. It was announced first on June 23.

If passed, the bill could prohibit crypto entirely for payments except for a “national” one. As such, this refers possibly to a central bank digital currency in the works. However, there is also a chance that the statement refers to licensed entities mining crypto within Iran. This would be more in line with the Central Bank’s previous statement. This was when it was trying to ensure that all currency traded is from local mining farms.

In essence, this proposed bill will position crypto mining and trade under the Ministry of Industry, Mine, and Trade. Licenses for farming will then have to be taken from this authority. Further, licensed mining companies with a power plant can apply to the country’s Energy Ministry to sell surplus electricity.

So far, Iran has allowed industrial crypto mining as long as licensed miners are doing it. In fact, it has been so since 2019. Iranian President Hassan Rouhani however announced in May a decision to prohibit mining until September. Also, authorities have been intensifying their raids on unlicensed miners. A likely reason for this is the country’s increasing demand for energy for the summer months.