Iran Reminds Citizens of Cryptocurrency Ban After Using Them for $10 Million Import Order

Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please review our website policy before making financial decisions.

Iranian citizens are still prohibited from buying and selling cryptocurrencies in the country, according to a recent statement from the country’s officials. The statement comes days after the Middle Eastern country announced that it was using cryptocurrencies for foreign trade.

Iran Signs First Cryptocurrency Import Order

Last week, Iran announced that it completed its first crypto-based order, worth $10 million. A report by the local semi-official news agency Tasnim said that the country plans to widely expand its use of digital currencies and smart contracts in foreign trade by the end of next month. It quoted the head of Iran’s Trade Promotion Organization (TPO), Alireza Peyman-Pak, as saying:

“This week, the first official import order registration worth $10 million using cryptocurrencies was successfully completed. By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with the target countries.”

Iran’s bold crypto move came a month after the United States announced a new round of sanctions against the country. As of early 2022, Iran was the most sanctioned country in the world. However, the country lost that spot after the US and its allies announced sweeping sanctions against Russia following its invasion of Ukraine.

Join our Telegram group and never miss a breaking story on digital assets.

Citizens are still prohibited from trading in cryptocurrencies

Despite its historic move to use crypto in foreign trade, Iran has not lifted the ban on cryptocurrency trading. Ali Salehabadi, the governor of the Central Bank of Iran (CBI), reportedly reiterated the government’s stance against cryptocurrency trading, reminding citizens that buying or selling crypto assets, as well as their use for investment purposes, is still prohibited. .

See also  The NICB Says Your Subaru Forester Is Now A Prime Target For "Cat Burglars"

On the other hand, authorized entities can mine cryptocurrencies and use them for international deals, Salehabadi said. He said that Iranian companies can use crypto assets to pay for imports, referring to regulations adopted by the bank and other government institutions such as the Ministry of Industry, Mines and Commerce, according to a report by the English edition of Iran Labor News. Agency (ILNA).

The Central Bank of Iran banned cryptocurrency trading within the country in 2019. In the same year, the country recognized mining as a legitimate industrial activity and issued licenses to several companies.

In mid-2021, Iran’s Ministry of Commerce issued operating licenses for 30 crypto mining centers in the country, the Financial Tribune reported. The ministry also issued 2,579 establishment permits for new industrial crypto mining units at the time, but ordered miners to sell their mined bitcoins to Iran’s central bank.

In particular, mining operations have put unprecedented pressure on Iran’s power grids, forcing the government to cut power even to authorized miners at times. However, the country remains one of the largest Bitcoin mining hubs, accounting for 4.5% of all Bitcoin mining operations.

Finances are changing.

Learn how, with Five Minute Finance.

A weekly newsletter covering the big trends in FinTech and Decentralized Finance.

Do you think Iran’s ban on cryptocurrency trading for citizens seems hypocritical? Let us know in the comments below.

About the Author

Ruholamin Haqshanas is an accomplished crypto and finance journalist with over two years of experience writing in the field. He has a strong understanding of various segments of the FinTech space, including the decentralized iteration of financial systems (DeFi) and the emerging market for non-fungible tokens (NFTs). He is an active user of digital assets for remittances.

See also  The crypto winter hasn't deterred UK young adults from investing in the asset class, according to WisdomTree

Leave a Comment