Proposed bill in Iran aims to restrict use of cryptocurrencies

The Iranian Parliament Commission on Economy has recently drafted a new bill aimed at restricting the use of cryptocurrencies in the country as well as providing a more transparent legal framework for crypto miners.

According to the Tasnim News Agency, the draft bill is entitled “Support for cryptocurrency mining and organizing the domestic market for exchanges.”

If the bill becomes a law, the Central Bank of Iran will become the regulatory authority for the exchange of cryptocurrencies in the country.

Salient points of the proposed law

The proposed bill could make cryptocurrencies prohibited from being used as payments within Iran, with the exception of a “national” one such as a Central Bank Digital Currency (CBDC) or tokens minted by the government.

The statement, however, could also refer to crypto that is mined by licensed entities that operate within the territory of Iran. It can be recalled that the country’s central bank said it is exerting effort to make sure that all digital currencies that are traded in the country are produced by local farms.

Moreover, if the bill passes into law, the crypto mining industry will be put under the supervision of the Ministry of Industry, Mine and Trade. The agency will then be given the authority to grant licenses for farms.

Keeping mining industry in check

Since 2019, crypto mining has been legal in Iran, recognized as an industrial activity, as long as miners are licensed and regulated.

But last May, the industry took a bit of a bad turn, as Iranian President Hassan Rouhani announced that mining operations would be prohibited until September this year.

As the country faces energy problems, authorities have been stepping up their raids on unlicensed miners.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/proposed-bill-in-iran-aims-to-restrict-use-of-cryptocurrencies/