The President of Iran advocates for a crypto-trading legal framework - TCR

• Legal framework for Crypto Trading to protect the national interest
• Bitcoin Mining remains banned till September end
• Crypto Mining with household electricity not legal says Iran’s Ministry

While Bitcoin (BTC) mining is still prohibited in Iran, the country is looking for ways to introduce a legal framework for cryptocurrencies. Iranian President Hassan Rouhani emphasized the need to legalize cryptocurrency activities during the Cabinet’s Economic Coordination Board meeting on Tuesday in order to preserve and protect national interests. In April, the value of a single Bitcoin surpassed $63,000 for the first time. The bull market in the new phenomenon in the previous year encouraged many people around the world, including Iranians, to invest in the field.

Hassan Rouhani’s view on Crypto Trading

Rouhani stated that the country’s legal and technical requirements for crypto and digital currencies must be met. Rouhani emphasized the importance of people’s awareness in this field to avoid unprofessional entries, citing the risks of cryptocurrency trading that they must come up with a solution as soon as possible to legalize cryptocurrency activity and protect people’s capital in this area, as well as lay down and communicate the necessary laws and instructions. Developing a smart economy is a necessity today, but legal and technical regulations must be carefully crafted, as well as a dynamic policy, he adds.

Mining is a process in which powerful computers compete with one another to solve complex mathematical problems, which is how Bitcoin and other cryptocurrencies are created. The process is extremely energy-intensive, and it frequently relies on fossil-fuel-generated electricity.

Iran’s illegal Bitcoin Mining issues

Hassan Rouhani, Iran’s president, stated that approximately 85 percent of the country’s cryptocurrency mining farms are unlicensed. Illegal mining activities in the region are being closely monitored by Iranian authorities. Iran has become a center for cryptocurrency mining thanks to government subsidies. Iran accounts for nearly 4.5 percent of global Bitcoin mining, according to the latest data from Elliptic, a blockchain analytics and crypto compliance solutions provider.

Iran launched a crackdown on illegal cryptocurrency mining farms in the country in January 2021, shutting down over 1,600 unauthorized units. The illegal Bitcoin and crypto mining farms in Iran are causing heavy losses to the country’s power distributors, according to Tavanir, Iran’s state-owned power generation, distribution, and transmission company.

Iran’s Economic problems

Iran’s economy has taken a beating since former President Donald Trump pulled out of the 2015 nuclear deal with six world powers and reimposed sanctions in 2018. Iran has been in talks with US President Joe Biden’s administration and other world powers to resurrect the deal. Iran has recently accepted cryptocurrency mining, providing low-cost electricity and requiring miners to sell their bitcoins to the central bank. Iran allows cryptocurrencies mined in the country to be used to pay for authorized imports.

President’s action on illegal Crypto Trading

Rouhani has called for a multi-party study to establish a legal framework for cryptocurrencies. He stated that in the field of capital markets, responsible agencies should collaborate with the media and cyberspace in the areas of information, education, and public awareness about the phenomenon, its instructions, and laws. He also clarified that crypto mining remains illegal until the end of the summer and that the Ministries of Communication, Information Technology, and Energy are responsible for cutting off power to these centers.

Iran has banned cryptocurrency mining until September 22nd, ahead of the country’s peak electricity demand season. Due to an expected energy crisis, the country is planning to avoid blackouts in major cities this summer.