Iran prepares to pass a law that will centralize crypto use: report

Iran is in the process of introducing a bill aimed at centralizing and regulating the use of cryptocurrencies, and it is also rethinking its stance on crypto mining in the country. So let’s read more on the crypto news about our latest death.

The Iranian legislature has drafted a bill to support the mining of cryptocurrencies and organize the domestic market for exchanges. The plan is to make Iran’s central bank the main regulator for cryptocurrency exchanges in the country for three months. This includes a new plan to ban the exchange of cryptocurrencies within the country with the exception of their national cryptocurrencies as a means of payment. An interesting part of the bill is that the cryptocurrency miners in the country are controlled by the Ministry of Industry and that miners must obtain a license from the Ministry to operate as well as a license to build mining facilities. Activities that caused multiple blackouts in May by draining electricity in a city.

Miners have an opportunity to sell the excess energy they generate, considering that an estimated 4% of global BTC mining takes place in Iran. Similar to China, Iran is also on the way to replacing similar cryptocurrencies with CBDCs such as the digital yuan. Such a cryptocurrency would give authoritarian governments much more control and control over people’s money, confirming the value of decentralization that most proponents of crypto holdings, but also BTC users, have. Last month, the Iranian government arrested 7,000 computer miners from a crypto mining farm and, like China, has started crackdown on these activities.

Because of this, Iran is set to propose a bill that complies with the cryptocurrency mining ban enacted in May in response to power outages. This ban will ban mining operations for households until September 2021. Previously, Iran was considered an important hotspot for mining companies because of its cheap electricity.

As recently reported, the Iranian authorities have seized around 7,000 cryptocurrency miners with the latest developments in line with Iran’s crackdown on illegal BTC mining activities. According to Reuters, General Hossein Rahimi, Tehran’s police chief, revealed that computer miners had been found in an abandoned factory in the Iranian capital that was mining money.

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