Home News Iranian Lawmakers Oppose Crypto Restrictions, Call for Supportive Regulations

Iranian Lawmakers Oppose Crypto Restrictions, Call for Supportive Regulations

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Iranian Lawmakers Oppose Crypto Restrictions, Call for Supportive Regulations. Members of Iran’s parliament, the Majlis, have expressed their displeasure with Tehran’s restrictive policies regarding new technologies such as cryptocurrency. Legislators have urged for the implementation of friendlier laws. Following the release of research suggesting a fresh approach to the crypto business.

Iranian MPs Urge for Change in Crypto Policies After Research

Some Iranian lawmakers are working to modify the government’s stance on cryptocurrencies. Noting the potential to utilise them to help the country’s sanctioned and struggling economy. Gholamreza Marhaba, a spokesperson for the Majlis Economic Commission, warned Iranian media that such a restricted approach simply pushes creative ideas underground.

According to the English-language daily Financial Tribune, the authors of the study, which preceded the Iranian legislature last week, suggest a new strategy to regulating the bitcoin business. They think that the industry may help Iran’s economy recover from decades of international sanctions and mismanagement.

Crypto mining is allowed in Iran under current government regulations for businesses licenced by the Ministry of Industries, Mining, and Trade. In 2019, digital coin minting was designated as an industrial activity. Trading of crypto assets, on the other hand, is not authorised. And Iranian authorities have been cracking down on local exchanges, with one significant exception. Banks and licenced moneychangers are able to pay for imports using digital currency generated in Iran.

Another Majlis member, Hadi Nejad Beigi, stated that the government of former President Hassan Rouhani was hesitant to allow cryptocurrency trading. Because it would attract private investment. However, the rising popularity of bitcoin among Iranians spurred MPs to propose a bill that would restrict the use of cryptocurrency in payments while still supporting mining and regulating trade.

Crypto Mining Can Help Iran to Expand Its Power Generation Capacities

Cryptocurrency mining, according to the research, can help alleviate some of the challenges that the Iranian energy sector is facing, such as financial concerns. As a result, MPs have proposed that the government enable miners to purchase power directly from local and international suppliers through the Iran Energy Exchange. They’ve also proposed introducing “barter transactions”. In which mining businesses pay for subsidised electricity with the digital money they mine. Which they sell “at fair rates determined by the Central Bank of Iran“.

Ehsan Arkani, a colleague of his, noted that by boosting crypto mining, Iran can speed up the repair and growth of its power facilities. He also mentioned the possibility of using cryptocurrency to circumvent US-led economic sanctions. Arkani said that “cryptos are becoming an inseparable component of the global financial industry”. And that “policymakers need to be aware of this technology so that we can profit from it”.

During the hot summer months, bitcoin mining blamed to be the reason for electrical shortages and blackouts across Iran. President Rouhani put a temporary restriction on approved miners’ activities this spring. While the number of shut-down, illicit crypto farms has now surpassed 5,300. Iran’s state-run power company, Tavanir, stated last month that limitations will be more tolerant on Sept. 22 as energy consumption decreases as temperatures rise.

This year, There have been increasing calls to legislate and adequately regulate the Iranian crypto sector. The Iranian parliament called on capital market regulators to develop efficient investment vehicles for lawful cryptocurrency trading in May. The country’s economics minister then cautioned in June that the government could not meddle with crypto technology development for too long. In mid-August, the country’s securities watchdog suggested that the Central Bank of Iran handle the Iranian people’s usage of cryptocurrencies.

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