Crypto Mining Now Accepted as an ‘Industry’ in Iran

After the existing ban of crypto mining in Iran for a couple of years, crypto mining will now be accepted as an industry in the country. The Secretary of Iran’s Supreme Cyberspace Council told local news agency IBENA that this was a joint agreement by the various ministries of the government.

According to the report by the minister, the secretary of the Cyberspace Council, Abolhassan Firoozabadi, stressed the need for the full acceptance of cryptocurrencies such as Bitcoin (BTC) as a medium of exchange. He noted that the recognition of the mining of cryptocurrencies as an Iranian industry would go a long way in revamping the economy since relevant authorities have now accepted it.

However, official legislation that will fully make this industry a legal framework is yet to be introduced in the country.

Feeder from the Minister’s office shows that the framework may come in by September, but the Secretary did not divulge a timeframe for providing a final regulation for the crypto mining industry. However, given Iran’s latest efforts around cryptocurrencies, one would not be wrong to expect that the regulation happens sooner than later.

Some of the ministries that accepted crypto mining as an industry include the Ministry of Information and Communications Technology, the Ministry of Industry, the Central Bank, Mine and Trade, Ministry of Economic Affairs and Finance, as well as the Ministry of Energy.

A report last month showed that the sovereign country of Iran is fully on track to introduce a Central Bank-backed Digital Currency (CBDC). It was revealed that a draft of the state-backed cryptocurrency project is ready and the government is actively pursuing the project.

The Iran government hopes that with the introduction of a CBDC, it will allow it to escape US sanctions and also make it difficult for its citizens to purchase dollars or engage in foreign exchange with dollars. This will help ease the transaction between them and their trading partners.   The CBDC will also serve as a financial tool for the Central Bank in collaboration with Iranian business partners amid economic pressure.

In late August, Iran’s National Cyberspace Center revealed that the draft of the state-backed cryptocurrency project is ready, following the directives from President of Iran, Hassan Rouhani. Iran’s Supreme Cyberspace Council claimed that the idea of launching a national cryptocurrency is actively pursued.

The secretary reportedly claimed that the appropriate authorities would introduce a regulatory framework for crypto-related startups and firms in late September. According to Firoozabadi, the nation wants to be in a position where “cryptocurrencies and its Central Bank acts as a trustee in the foreign exchange area.” This will allow it to carry out international dealings despite any situation that arises in the future.