• Business And Markets

    Gov't to Resume Issuing Permits for Cryptominers

    New regulations for cryptocurrency mining was approved by the government on Sunday. The Ministry of Industry, Mine and Trade now has permission to resume issuing licenses for cryptomining, the minister said. 

    "The Cabinet reviewed the new rules and some parts were approved during the meeting. The Ministry of Industries will start issuing licenses for the miners and mining centers," Reza Fatemi Amin was quoted as saying by the website Way2pay.ir. 

    "The regulations are comprehensive covering a wide range of issues related to the crypto industry, including their power needs and authorization mechanism," he Fatemi Amin added. 

    "The ministry had formerly licensed some miners, but the process was suspended for a while due to some legal problems." He did not elaborate. 

    In 2019 the former government recognized cryptomining as a legal industry. Miners had to apply for a permit from the Ministry of Industries. However, trade in crypto is still banned.

    Growing interest in crypto mining and trade in Iran has prompted authorities to come up with a roadmap for crypto business in its entirety. 

    To address the challenges, the Raisi administration has proposed to regulate digital assets and cryptocurrencies and called on private companies to send their views and suggestions.

    Observers, however, are not convinced and say the new rules do not go far enough in addressing the drawbacks and deficiencies that have long deprived the sector of growth it deserves.

    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.

     

    Easing Import Payment

    According to the official the new regulations permit using cryptocurrencies for importing goods and commodities to some extent. 

    "Cryptos mined by legal centers can be used for importing any type of goods including cars…Based on the agreements with the Central Bank of Iran, importers can settle their bills using cryptocurrencies like bitcoin," Fatemi Amin said. 

    In January, the CBI and the Ministry of Industries reached agreement to link the CBI crypto platform to the Comprehensive Trade System, which allows businesses to use cryptocurrency to pay overseas bills. 

    Earlier this month, Iran's Trade Promotion Organization said $10 million in cryptocurrency was used recently to pay for imports.

     

    Some Details 

    Mohsen Rezei Sadrabadi, an official with the Center for Monitoring Government's Transformations, said that the new rule book has seven chapters.

    "Chapter two deals with rules related to cryptomining and was approved by the government on Sunday," EghtesadOnline quoted him as saying. 

    "The remaining sections will be discussed and approved soon.”

    The government supports establishment of large crypto mining centers and is trying to lay out the regulatory structure for large-scale mining, he said. 

    Power needed for cryptomining is a key concern for the government, he said, "The new rules underscore renewables for this sector."

    The Ministry of Industry in March said that permission for cryptomining in Iran would be given only to companies using renewable energy.

    It added that using renewables is also a prerequisite for renewing a mining license. "Permits for farms using non-renewable power will not be renewed."