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Iranian importers are pushing for more clarity on how cryptocurrency can be used in international trade.

Iranian importers are pushing for more clarity on how cryptocurrency can be used in international trade.

In the wake of the earliest officially reported payment made with cryptocurrency in the international trade of the sanctioned country, importers within Iran are bringing attention to the need for stable regulations in order to continue trading through cryptos.

Alireza Managhebi, head of Iran’s Importers Group and Representatives of Foreign Companies, was quoted on Saturday by some local press outlets as saying that the country needs a solid infrastructure and regulations in place before it can successfully use cryptocurrency for imports.

The Iran Importers’ Association Says Cryptocurrency’s Role in International Trade Needs Clarification of Regulations

He wondered if the businesses actively operating in the sector would be harmed if the government enacted reliable regulations to deal with crypto usage eyeing and then changed those regulations a few months later. In addition, Managhebi voiced skepticism about the idea that cryptocurrency used on an official level for imports could end the dollar’s dominance.

Even so, he drew attention to the danger that a novel payment mechanism could inspire the rise of rent-seeking business coalitions. The first cryptocurrency import order, totaling $10 million, was completed by Iran on August 10th of this year. Peyman-Pak has been mum on the specifics of the crypto usage or the role of the imported goods.

But he did say that this $10 million order was just the beginning of several international deals that will be settled using cryptocurrency. The predominantly Muslim nation has made multiple moves toward crypto acceptance in 2018. The law was revised in October, three years later, to allow cryptocurrency to be used to pay for imports.

Iran’s Crypto Mining Industry Grows Due to Affordable Power Prices

A total of 30 mining licenses were issued by the Iranian Ministry of Trade in June of last year, allowing Iranian miners to begin cryptocurrency mining. The coins had to be exchanged for fiat currency at the country’s central bank after they were mined. The nation is currently compensating imports with locally mined tokens.

The Iranian government recently announced that, since the conclusion of events in March, 9,404 illegal crypto mining devices have been seized in Tehran. According to the data, Iran is seeing a rise in cryptocurrency mining due to cheap electricity costs. U.S. sanctions that have prevented Iran from accessing the international financial system have also helped boost cryptocurrency usage and mining.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.