Iranian Government Passes Bill That Will Not Recognize Crypto-Related Trade

Cryptoinformers || AUGUST 5, 2019
A new law that does not accept crypto as legal tender or recognize domestic transactions carried out with cryptocurrencieshas new initiated by  Iranian government.

The bill was ratify and released by the Cabinet of Iran on Aug. 4,  which says that the government will not recognize any trading activity involving cryptos within the country,  PressTV reports the same day.

Per the report, the new bill says that the government and the banking system will not see digital coins as legal tender, and  their value will not be guarantee by Iran’s central bank.

It is however reported that mining will be allowed with approval from Iran's industry, with the report stating that no one should "mine the currencies inside a 30-kilometer boundary of all provincial centers except for the capital Tehran and the central city of Esfahan where tougher restrictions apply." that "the miners should also observe rules set by Iran’s standardization and communications authorities for mining machines, adding that certain fees will be applied for the energy used for mining the currencies."

Looking at the fees for miners, the report says that "farms would be taxed like industrial manufacturing units unless the owners return the money earned from the export of their digital currencies back to Iran’s economic cycle."

The new bill follows comments from the deputy governor of Iran’s central bank, who in July announced that buying and selling cryptocurrencies like Bitcoin (BTC) was illegal.

Iran had previously authorized cryptocurrency mining as an industrial activity within a specified permitting scheme. In order to mine cryptocurrency in Iran, local miners will have to get approval from Iran’s Ministry of Industry, Mine and Trade, as well as to ensure that their mining facilities are located outside a 30-kilometer perimeter of all provincial centers in the country.

While mining is now legal in the country, the deputy president of the Islamic Republic of Iran Customs Administration recently noted that the agency has not issued licenses for importing digital currency mining equipment into the country.

The new crypto bill was introduced in Iran following the increased popularity of cryptocurrency mining as a method of avoiding international sanctions.

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