August 5, 2021

Iranian Parliament Drafts Bill to Regulate Use of Cryptocurrencies

2 min read

The bill, drafted under supervision of the Parliament’s Economic Commission, is known as the plan on “support for cryptocurrency mining and organizing the domestic market for exchanges”.According to the bill, the Central Bank of Iran will serve as the main body regulating the exchange of cryptocurrencies inside the country and will be tasked with handling the domestic cryptocurrency market within three months.The bill has also prohibited the use of cryptocurrencies, except a national one, as a means of payment inside Iran or for a domestic transaction system.Under the new parliamentary bill, the Ministry of Industry, Mines and Trade will undertake to control the cryptocurrency mining industry and grant licenses to establish cryptocurrency mining farms.According to one of the articles of the bill, the Iranian miners of cryptocurrency can apply for permission from the Energy Ministry for inaugurating or participating in the construction of power plants, and can even sell the surplus of the electricity generated in their plants.Bitcoin and other cryptocurrencies are created through a process known as mining, where powerful computers compete with each other to solve complex mathematical problems. The process is highly energy intensive, often relying on electricity generated by fossil fuels.The value of a single Bitcoin reached over 63,000 dollars for the first time in April. The new phenomenon’s bull market in the past year encouraged many around the world and also in Iran to invest in the field.However, many financial gatekeepers are now expressing concerns about the future of cryptocurrency and the risks it involves.