Saturday, December 3, 2022

Iran warns that crypto trading is illegal

Iran, which is facing sanctions from several countries, has warned its citizens and firms that it is illegal to buy or sell cryptocurrencies. However, using them for mining or importing cryptocurrencies would not be a violation of Iranian law. Iran placed its first order for imports paid in cryptocurrencies this month.

Central Bank of Iran Governor Ali Salehabadi recently told local media Told That prohibits the use of digital assets for the purchase and sale or investment of cryptocurrencies. However, authorized individuals and firms can legally mine cryptocurrencies. He referred to regulations adopted by other government institutions such as the Central Bank and the Ministry of Industry that allow Iranian firms to pay for imports in cryptocurrencies. This week deputy minister of trade Alireza Peymanpak said Iran placed the first import order using cryptocurrencies and bought goods worth about $10 million.

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However, payments via crypto are not allowed inside Iran. The government has cracked down on local exchanges and only banks and licensed forex agents are allowed to use mined digital currencies in Iran to pay for imports. Crypto mining has been accepted as a legitimate industrial activity in Iran for almost three years. Several firms have been licensed for mining cryptocurrencies such as bitcoin. Its effect has also increased on the supply of electricity in Iran. A network of computers and other equipment is used for mining cryptocurrencies and they consume a lot of electricity.

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Registered crypto farms are instructed to cease operations as the demand for electricity in Iran increases. Apart from this, Iran’s Power Generation and Distribution Company has also launched campaigns to catch illegal miners. Some other countries like China have completely banned crypto mining due to high consumption of electricity. In Texas, America, the supply of electricity was interrupted due to crypto mining and it was strongly opposed by the local people.

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Cryptocurrency prices in Indian exchanges

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