Iran is planning to move towards a much more liberal stance towards cryptocurrency. According to Iranian Minister of Economic Affairs and Finance Abdolnaser Hemmati, the country wants to accept cryptocurrency assets by enacting additional rules rather than imposing complete prohibitions.
The move comes against the backdrop of a rise in global acceptance of crypto alongside rising geo-political tensions, forcing many nations to jump on the crypto bandwagon.
Iran Plans On Bring Crypto-Friendly Regulation
The Iranian official news agency Nour News reported that Hemmati said during a nationwide event on Saturday, December 7th, that the government wants to eliminate the negative economic effects of cryptocurrencies and capitalize on their positive ones.
With the integration of the regulations, the Iranian central bank will be in charge of digital currency, the minister continued.
According to Hemmati, he hopes that cryptocurrencies will be used to increase youth employment in Iran, assist in overcoming US sanctions, and bring the nation’s operations into line with those of the international economy.
Iran Central Bank Plans On Crypto Regulations
Interestingly, the Central Bank of Iran released a new document summarizing its plans for future cryptocurrency policies on the same day as Hemmati’s speech. According to Nour News, the new regulations will help cryptocurrency traders adhere to regional tax and anti-money laundering regulations.
The move puts Iran one step forward in the global race of crypto acceptance amid the rise in tensions in the middle east.
Also read: Crypto Market Declines Amid Israel-Iran Conflict, Historical Patterns Show Potential Rebounds
Iran’s Previous Ban on Crypto
Because of worries about money laundering and terrorism financing, Iran outlawed the trading and ownership of cryptocurrencies in 2018. It was prohibited for all Iranian financial institutions, including banks, credit bureaus, and currency exchanges, to deal with or advertise cryptocurrencies.
However, in 2019, as sanctions were severely damaging their local currency, the government started to lift this ban. It was thought that cryptocurrency might provide some respite from dependence on the US dollar. New rules from the Central Bank of Iran permit cryptocurrency ownership and mining, but they forbid using digital currency as a form of payment.
With the price of Bitcoin skyrocketing and the Iranian stock market and currency plummeting, the Iranian government once again started looking into the possibility of reintroducing more cryptocurrency controls towards the end of 2020. More restrictions on cryptocurrency miners who use a lot of energy are the only changes to the regulations that have occurred thus far.