Iran banks allow digital assets to pay for imports. Recently, Iran’s central bank allows the country’s financial institution to use cryptocurrency, derived from sanctioned miners, to pay for imports.
Iran is set for a landmark moment as it has authorized banks and currency exchangers to use cryptocurrencies mined by a licensed crypto miner to pay for imports. The Iranian state officially permits mining operations as an industrial activity. Miners have to secure a license from the Ministry of Industry, Mine, and Trade for mining activities.
According to a report by the Financial Tribune, this information was announced by the central bank of Iran last Saturday. A report read that Apex bank had notified lenders and licensed currency exchange offices about a new regulatory framework for crypto payment. Approval of the new framework allows companies within Iran will able to pay imports using cryptocurrencies. This expects to ease the burden for a country currently under severe economic sanctions from the United States.
In October 2020, the government ratified regulations for legal cryptocurrency mining that allowed digital currency that utilized imports. The amendment enabled the central bank of Iran to pay for imports using bitcoin from regulated miners. The amendment means those institutions will not pay for goods and services from other countries in a bid to circumvent U.S economic sanctions. Some say the local crypto mining industry could generate as much as $2 million a day in revenue.
Due to relatively cheap electricity within Asian nations, Iran regards as a major hub for crypto miners. One of the largest oil producers in the world generates electricity that exceeds the local demand, which sold to crypto miners to power their mining farms.
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Iran regulates the crypto mining sectors and issued over 800 licenses for crypto miners in recent years. Despite close regulation from the government, there are tons of illegal crypto mining farms scattered across the country. In January, the Iranian government shut down over 1,500 illegal mining operations.
Iran considering amending the current cryptocurrency framework in the country. Mohammadreza Pourebrahmi, the head of the economic commission, recently revealed that the organization had examined crypto activities. The government opening up the cryptocurrency mining sector made Iran one of the leading crypto-mining countries in the world.
