Economy Minister Ehsan Khandouzi said Sunday that the government has a positive but rules-based approach towards cryptocurrencies
"Policymakers have gone overboard in pushing opposing views that insist the government would do better to stay away from the issue…
We have designed crypto rules with a positive outlook in harmony with the economic needs and considerations," Way2pay website quoted Khandouzi as saying. He did not elaborate.
The government has finalized the crypto rulebook except two articles that must be addressed by other authorities. "I hope with the first crypto regulatory framework we will be able to benefit from the new technology."
Mining virtual currency is legal in Iran and miners can operate under rules approved by the government in July 2019. Mining digital currency without a license from the Ministry of Industries is illegal.
Trade in crypto is still banned even though recently the CBI said banks and licensed moneychangers may use the e-currency mined by authorized miners in Iran to pay for imports.
The Raisi administration has prepared a new bill to regulate cryptocurrency mining and is expected to change those announced by its predecessor. It has asked private enterprises to send their views and suggestions on the new rulebook.
Observers, however, are not convinced and say it does not go far enough in addressing the present drawbacks and deficiencies that have long deprived the sector of the growth it deserves.
The new framework proposes setting up a centralized platform for monitoring and supervising the crypto market along with user IDs.
Establishment of a new company affiliated to the Ministry of Economy is in the cards to develop crypto infrastructure. The company, Mehr, will prepare the platform and create a hub to link crypto exchanges to the supervisory system.
Iran Blockchain Association (IBA) has warned the government about uniformed judgments and unhelpful protocols for the future of cryptomining.
"Unfortunately, a similar approach is toward crypto trade, as the Central Bank of Iran and other authorities have been trying to adopt traditional regulatory methods, such as issuing licenses, for controlling the market,” the IBA said.
The Majlis Research Center, the research wing of the parliament, has also taken a stance on the negative impact of the government ban on cryptomining and closure of unauthorized mining centers and dismissed it as a failure.
“Estimates about the total volume of cryptocurrencies mined in Iran between April 2021 and August 2021 shows that more than half the illegal miners were indifferent to the government’s decision to ban cryptomining,” the think-tank said in a recent report.
