Because bitcoin mining is a regulated activity in Iran, the country’s securities and exchange regulator believes the central bank should focus on cryptocurrencies. When digital assets are regulated, the regulator is willing to consider accommodating crypto trade.
If the central bank regulates cryptocurrencies, a capital market regulator will investigate crypto trading.
The Securities and Exchange Organization (SEO) of Iran has no immediate plans to host cryptocurrency trading in the country’s capital market, but this could change if cryptocurrencies are properly regulated. According to Mohammad Ali Dehqan, the authority’s head, this is the case.
According to Dehqan, who was quoted by the Ibena news agency and the English-language Iranian business daily Financial Tribune, government rules for cryptocurrency mining are currently the only crypto-related regulations. He went on to say:
The CBI should be concerned with the use of mined cryptocurrency by the general public.
According to the SEO official, because the Central Bank of Iran (CBI) has not made a specific announcement regarding the use of cryptocurrencies, digital currency trading in the Iranian capital market is not currently possible. Mohammad Ali Dehqan, on the other hand, emphasized:
If the Central Bank of Iran regulates cryptocurrencies, we will investigate the matter.
Iranian Authorities Under Pressure to Clean Up Cryptospace
In Iran, where crypto investments have grown in popularity, calls to regulate cryptocurrencies have grown louder. In May, the Iranian parliament urged financial regulators to proceed with caution and urged capital market authorities to create efficient investment vehicles for legal crypto trading. The country’s economy minister warned in June that the government could not continue to interfere with the development of crypto technologies for too long.
Last month, lawmakers proposed draft legislation that would prohibit the use of cryptocurrencies in domestic payments while also regulating crypto exchanges and providing assistance to cryptocurrency miners. The bill’s authors want the CBI to oversee the cryptocurrency market. The Iranian National Tax Administration recently proposed taxing digital asset exchanges in the country and urged regulators to legalize their operations.
Although the CBI authorized Iranian banks and moneychangers to process cryptocurrency minted by miners inside Iran to pay for imports, Iranian authorities have attempted to restrict crypto trading. Earlier this month, legal experts from the president’s administration explained that the exchange of cryptocurrencies, or coin swapping, is not prohibited by the Islamic republic’s current regulations.
Since the Tehran government recognized bitcoin mining as a legal industrial activity in 2019, it has remained the only comprehensively regulated crypto business in Iran. Miners must obtain a permit from the Ministry of Industries, which has already licensed a few dozen mining companies.