Iran prepares bill to centralize and regulate the use of cryptocurrencies
The Iranian parliament is reviewing cryptocurrency mining in the country, but on its own terms.
The Iranian legislature recently drafted a bill to “support cryptocurrency mining and organize the domestic exchange market”.
EASYLaw How is the regulation?
The plan aims to make Iran’s central bank the main regulator for domestic exchanges within three months. Accordingly, it is forbidden to exchange any cryptocurrency in the country as a means of payment, with the exception of the national cryptocurrency.
A particularly interesting part of the bill is that the local miners will be administered by the Ministry of Industry. Miners are required to obtain operating permits from the Department of Industry and Department of Energy to build the power plants needed to operate – which is believed to have caused the blackout as supplies to the city are depleted by the end of the year.
Miners are allowed to sell the excess energy they generate. Much expected is due estimate More than 4% of the world’s Bitcoin mining is carried out in Iran.
Iran’s approach to miners
Like China, Iran is also following a similar route to cryptocurrencies. to replace CBDC as a digital yuan.
Such a currency would give authoritarian governments more control and control over citizens’ money. This is in contrast to the value of “decentralization” that most crypto enthusiasts, including Bitcoin users, have.
Last month, the Iranian government confiscated 7,000 mining machines from a farm amid a nationwide crackdown on the activities, similar to what happened in China.
Earlier in May, Iran issued a temporary ban on the mining of cryptocurrencies in response to power outages. The ban applies to both household mines and will last until September 2021.
Previously, Iran was considered a hotspot for mining operations due to its relatively cheap electricity supply.
At home at home
According to Cryptopotato