Iran has enacted a new law disavowing the use of cryptocurrency as legal tender and not recognizing any domestic transactions conducted using digital currency.
According to Iranian media agency PressTV, the Cabinet of Iran recently ratified and announced new legislation that states the government won’t honor any local trade activities involving cryptocurrency.
This newest bill reportedly stated that the Iranian government and banking system will not see crypto tokens as legal tender. The country’s central bank won’t guarantee the value of the digital coins either.
The bill comes on the heels of the deputy governor of Iran’s central bank’s comments that the buying and selling of crypto like Bitcoin (BTC) was irregular.
The ruling appears to be in contradiction with Iran allowing cryptocurrency mining. The country has permitted it as an industrial action within a specific scheme. Local miners are required to secure approval from the Ministry of Industry, Mine, and Trade. They should also make sure that their mining equipment are situated 30 kilometers away from the country’s provincial centers.
Tehran and Isfahan
However, Iran’s capital Tehran and the city of Isfahan are exempted from this requirement as the two areas have different, stricter regulations in place.
With the new rule, cryptocurrency miners will be taxed for the energy they used depending on the adjusted prices for exporting energy.
While crypto mining is considered legal, the deputy president of the Customs Administration of the Islamic Republic of Iran has pointed out that the department has not issued any licenses for the importation of crypto mining equipment.