Since bitcoin mining is a regulated activity in Iran, the head of the country’s securities and exchange commission believes the central bank needs to turn its attention to cryptocurrencies. The regulator is ready to take crypto trading into account when regulating digital assets.
The capital markets regulator checks crypto trading when the central bank regulates cryptocurrencies
The Iranian Securities and Exchange Organization (SEO) has no immediate plans to host cryptocurrency trading in the country’s capital market, but that can change if cryptocurrencies are properly regulated. That emerges from a statement by Mohammad Ali Dehqan, who heads the agency.
Quoted by the Ibena news agency and the English-language Iranian business newspaper Financial Tribune, Dehqan stated that state rules for mining cryptocurrencies are currently the only crypto-related regulations. He continued to insist:
The CBI should deal with the use of the mined cryptocurrency by the people.
The SEO official pointed out that trading digital currencies in the Iranian capital market is not currently possible because the Central Bank of Iran (CBI) has not made a specific announcement regarding the use of cryptocurrencies. However, Mohammad Ali Dehqan also emphasized:
We will look at the problem when the central bank of Iran regulates cryptocurrencies.
Iranian authorities under pressure to fix the crypto room
In Iran, where crypto investments have grown in popularity significantly, calls for regulation of cryptocurrencies have been made. In May, the Iranian parliament urged financial regulators to handle the matter cautiously and urged capital markets authorities to create efficient investment vehicles for legal crypto trading. In June, the country’s economy minister warned that the government could not meddle in the development of crypto technologies for too long.
Last month, lawmakers proposed a bill that bans the use of cryptocurrencies in domestic payments, but at the same time regulates crypto exchanges and supports crypto miners. The authors of the bill want the CBI to take over oversight of the crypto market. Recently, the Iranian national tax administration tabled a proposal to tax the digital asset exchanges operating in the country and urged regulators to legalize their operations.
Iranian authorities have tried to curb crypto trading despite the CBI authorizing Iranian banks and money changers to process cryptocurrencies minted by miners in Iran to pay for imports. In early August, legal experts from the president’s government stated that current regulations do not prohibit exchanging cryptocurrencies or exchanging coins in the Islamic Republic.
Bitcoin mining remains the only fully regulated crypto business in Iran since the Tehran government recognized it as a legal industrial activity in 2019. Miners must apply for a permit from the Ministry of Industry, which has already licensed a few dozen mining companies.
Do you expect the Iranian authorities to regulate the use of cryptocurrencies in the country? Do share your thoughts on the matter in the comments below.
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