Distributors of Cryptocurrency within Iran are emphasizing the need for solid rules in order to continue trading with cryptocurrencies. in light of the sanctioned country’s earliest officially acknowledged crypto payment in its international trade.
Some local news outlets reported on Saturday that Alireza Managhebi, the president of Iran’s Importers Group and Representatives of Foreign Companies, underlined the need for a strong infrastructure and rules in order to successfully use cryptocurrency for imports.
Iran Import Group Calls for Regulation Clarity Regarding Crypto’s Use in International Trade
He asked whether, if the government crafted reliable legislation to address crypto usage, they would remain unchanged for a couple of months so as to cause no harm to the entrepreneurs who are actively operating in the corresponding industry. In addition, Managhebi expressed skepticism over the notion that the dollar’s supremacy might be abolished by the official use of cryptocurrencies for imports.
Even more specifically, he drew attention to the danger of a novel payment system giving rise to rent-seeking business coalitions. Iran made its first ever international import order with cryptocurrency on August 10th, totaling $10M. Peyman-Pak did not disclose any information about the imported goods’ connection to the crypto usage.
However, he did emphasize that this $10 million deal is just the beginning of a series of foreign transactions that will be finalized using cryptocurrency. Throughout 2017, the Islamic nation made multiple attempts to normalize the use of cryptocurrency. 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
The Trade Ministry of Iran issued thirty operational licenses to domestic crypto miners in June of last year. The mined cryptocurrency have to be exchanged for fiat currency at the country’s central bank. At present, the country compensates imports with the mined tokens.
Ever since conclusion in March, Iranian officials have reported seizing 9,404 illegal devices for crypto mining in Tehran. There appears to be a rise in cryptocurrency mining in Iran due to the country’s low electricity costs, according to recent reports. Cryptocurrency use and mining have benefited from Iran’s isolation from the international financial system, a result of US sanctions.