Parliament has again called for developing comprehensive regulations for cryptocurrency trade.
Speaking at a meeting with representatives from the Central Bank of Iran and ministries related to cryptos, Ali Khezrian, the speaker of the Majlis Article 90 Commission, referred to the increase in crypto-related transactions in recent months and expressed the parliament's readiness to cooperate in crafting regulations with the help of relevant bodies.
"A recent report by the central bank shows that cryptocurrency-related deals reached 85 trillion rials ($197.6 million) in the second quarter of current fiscal year…Any hesitation in this regard could lead to major economic challenges," way2pay website quoted the MP as saying.
The key Majlis commission is of the opinion that all-encompassing regulations are a must to cover issues related to mining, trading and holding cryptocurrencies, the lawmaker said, noting that the participants in the meeting agreed to provide the legislature in-depth analysis to help prepare workable crypto laws.
The present dilemma about cryptocurrencies in Iran is a rather complex issue compared to previous regulatory challenges as no state authority is willing or able to accept responsibility in this sector whose future is unclear, to say the least.
Moreover, setting regulations for the digital currency by one state body is apparently not feasible for a number of reasons, not the least of which is its multi-definitional nature.
Market observers say that the hesitation in defining the regulatory framework of crypto sector plus arbitrary restrictions have created major challenges for the growth of the seemingly promising sector, leaving cryptominers little wriggle room but to relocate to other countries to be able to continue their business.
Current Situation
First Vice President Mohammad Mokhber in November announced new rules for crypto assets, adding some detail to those approved in 2019.
Like in the past the new rules only cover mining of cryptocurrencies, and extend the ban on crypto trade. Traders have been told that they should take responsibility for using cryptocurrency and beware that any risk will not be covered or compensated by the government and banks.
Per rules, cryptominers should get special permits from the Ministry of Industries, Mining and Trade plus permission from the same ministry for importing equipment. The Iran Standard Organization should also approve the mining devices before use.
The government has announced details about power supply to the cryptomining centers. Licensed miners have options for access to electricity from their farms, including establishment of on-site renewable power plants, buying power from renewable plants or start their own small power generators.
For electricity and gas, the cryptominers have to pay their bills based on energy export tariffs and are obliged to reduce operations by half in the peak summer seasons.
Electricity prices for cryptomining are set according to export tariffs and subject to currency rates at Nima -- the currency platform where forex is traded among importers and exporters.
New rules require the ministries of oil end energy to announce power rates on a quarterly basis and inform miners about peak season adjustments in advance.
Among other things, the new regulations state that mining crypto assets by using power (natural gas or electricity) sold for other usage is illegal and those in breach will be penalized.
The CBI is tasked with developing a platform to enable licensed miners sell their output to pay import bills.
Back in August, Iran's Trade Promotion Organization said $10 million in cryptocurrency was used recently for settling an import bill, noting that the country is targeting implementation of smart contracts in foreign trade.
In the previous regulations, mining cryptocurrencies was taxable and tax breaks were offered to miners who repatriated their earnings to the country. However, the government later decided to remove the exemption and treat cryptominers like other exporters.
Cryptocurrency mining centers can be established in the free trade zones where local authorities are in charge of licensing instead of the Industries Ministry.
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.
Gov't Taskforce
MP Khezrian's comments come after a recent move by the government to regulate cryptocurrencies. A special taskforce to this end has been set up by the government.
The National Taskforce of Cryptocurrencies held its first meeting in Tehran in mid-January to debate the implementation of the recently approved cryptomining regulations.
It was created on the recommendation of President Ebrahim Raisi and will function under the auspices of the Vice Presidency for Economic Affairs and convene twice a month.
The declared aim of the group is to enhance coordination between state bodies and institutions relevant to crypto. The central bank, the Ministry of Intelligence, Oil Ministry, Energy Ministry, Ministry of Industry, Mining and Trade and the Ministry of Economy are members of the taskforce.
According to way2pay website, the vice president for economic affairs, Mohsen Rezaei, chaired the first meeting.
