Iran Will Not Recognize Crypto-Related Transactions

Wilfred Michael 

Wilfred Michael

News reporter

05 August 2019,
Iran Will Not Recognize Crypto-Related Transactions

Barely two weeks after Iran legalized the activities of cryptocurrency miners, the country’s Cabinet has reportedly rectified a new bill that clarifies their stance on the actual use of cryptocurrencies in Iran.

According to an update by PressTV today, the new bill in Iran specifies that cryptocurrencies are not a legal tender in the country and as such, any trades involving them would not be recognized as lawful.

That would mean that the country’s government and banking system will not in any way guarantee the value of cryptocurrencies held by citizens. In other words, citizens can use them at their own risk and discretion.

Interestingly, the report cites the new bill as supporting the newly introduced rules for crypto miners, stating that their Iran will allow these firms to carry out their operations, albeit under seemingly strict rules.

For instance, Aside from mining farms situated Iran’s capital Tehran and the central city of Esfahan (tighter restrictions apply), mining farms must be located 30-km outside all provincial centers.

Mining firms must also obtain a permit from Iran’s industry ministry while they would also have to pay the same energy prices as those that the country spends on exporting energy. The latest situation implies that the cheap energy prices which attracted mining firms to the country will no longer become a primary driver.

Lastly, mining firms must come under the same taxes as industrial mining units, unless they opt to invest their earnings from selling cryptocurrencies to improve Iran’s economic cycle. The country sees the advent of digital currencies as the perfect opportunity to quickly access foreign currencies despite U.S sanctions against them.

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