The Majlis Economic Commission and the government are collaborating to prepare a comprehensive plan for regulating cryptocurrencies, Mohammad Reza Pourebrahimi, the head of the commission, said.
"The commission started working on the issue in the past. However, the former [Rouhani] administration preferred not to get involved," ISNA quoted him as saying.
Pourebrahimi said the commission had then prepared a draft outlining plans for regulating cryptocurrencies and cryptoassets. "The plan did not move forward largely due to the government's lack of interest."
Under the Raisi administration, which took office in the summer of 2021 "a taskforce was formed by the government to work on the crypto issue and inform the parliament about the progress at regular intervals."
Now a special taskforce has been set up by the government chaired by vice president for economic affairs, Mohsen Rezaei, the MP said.
The National Taskforce of Cryptocurrencies held its first meeting in mid-January to discuss ways and means to regulate the crypto industry.
It was created on the recommendation of President Ebrahim Raisi and meets twice a month under the auspices of the Vice Presidency for Economic Affairs.
The declared aim of the group is to enhance coordination between state bodies and institutions relevant to crypto. The central bank, Ministry of Intelligence, Oil Ministry, Energy Ministry, Ministry of Industry, Mining and Trade and the Ministry of Economy are members of the taskforce.
"The taskforce submitted a report on the government’s final position on crypto regulations, which is being reviewed by the commission. We think some modifications are needed," the lawmaker said without elaboration.
He added that the intention is to create a single plan of action based on the comprehensive plan prepared by the Majlis and the government report.
It has been reported that the Majlis Article 90 Commission recently called for comprehensive regulations for crypto 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 the current fiscal year [ends in March]. Procrastination and delays vis-à-vis an informed crypto regulatory framework can lead to economic challenges," way2pay website quoted the MP as saying.
The key parliamentary commission is of the opinion that all-encompassing regulations are a must to address issues related to mining, trade and holding cryptocurrencies, the lawmaker said, noting that the participants in the meeting agreed to provide the legislature in-depth analysis to help prepare the necessary crypto laws.
The present cryptocurrency dilemma in Iran is a rather complex issue compared to previous regulatory challenges as no state authority is willing or able to accept responsibility for an industry whose future, at best, is unclear.
Moreover, setting regulations for the digital currency by one state body is apparently not feasible for a variety of reasons, not the least of which is its multi-definitional landscape.
Experts and market observers note that the extended delays in defining the crypto regulatory framework 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.
Selective Approach
First Vice President Mohammad Mokhber in November announced new rules for crypto assets, adding some details to those approved in 2019.
Like in the past, the rules only cover mining of cryptocurrencies and maintain the ban on crypto trade. Traders have been told that they are responsibile for using cryptocurrency and must know that risks will not be covered or compensated by the government or banks.
Per rules, cryptominers should get special operating permits from the Industry Ministry plus permission from the same ministry for importing equipment. The Iran Standard Organization approves the mining devices before use.
The government has announced details about power supply to the cryptominers. 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 miners pay their bills based on energy export tariffs and are obliged to reduce operations by half in summer when power consumption is at its peak.
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.
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.
