Iran Blockchain Association says it welcomes the government’s plan to legalize cryptocurrencies and digital assets.
“Digital assets can be regulated and has now been incorporated into the government’s draft rules. Moreover, the government is in close collaboration with private sector representatives to reform rules. This is a major step forward,” Abbas Ashtiani, head of the association was quoted as saying by Way2pay.ir.
The government has prepared a proposal to regulate digital assets and cryptocurrencies and asked private enterprises to send their views and suggestions.
The focus is on setting up a centralized platform for monitoring and supervising the crypto market along with the IDs of users.
Establishment of a new company affiliated to the Ministry of Economy is in the cards to develop infrastructure related to cryptos. The company, Mehr, will develop the monitoring platform and create a hub to link crypto exchanges to the supervisory system.
The government has prepared a proposal to regulate digital assets and cryptocurrencies and asked private enterprises to send their views and suggestions. The focus is on setting up a centralized platform for monitoring and supervising the crypto market along with IDs of users
However, experts say the platform goes against the inherent anonymous nature of cryptocurrencies. Others are concerned about the security of the platform because leaks in user data would be harmful.
The government has reportedly prepared the bill to regulate the performance of crypto centers. Observers, however, are not convinced and say it fails to address drawbacks and deficiencies in the existing regulations that have reportedly deprived the sector of the growth it deserves.
In 2019 the government recognized cryptomining as a legal industry. Miners had to apply for a permit from the Ministry of Industries. Trade in crypto is banned even though recently the central bank said banks and licensed moneychangers can use the digital currency mined by authorized miners in Iran to pay for imports.
Recently a stock market official said the capital market should genuinely consider use of blockchain technology as it can help address major needs and create new vistas for reviving the share market
There are two main approaches to regulating the crypto sector. One considers cryptos as a currency unit that should be dealt by central banks. The other is digital assets and it is here that the capital market can and should act the regulator and supervisory body.
