The Iranian government has approved regulations for the use of Bitcoin for imports, Iran’s minister of Industry, Mining and Trade said, according to local news reports. A first order of importing $10 million worth of cars has already been executed.
Minister Reza Fatemi Amin spoke about the new regulations last weekend at an event in Tehran. According to him, it concerns detailed regulations regarding cryptocurrencies, the amount of fuel and electricity that may be made available for mining, and approval for their use in international trade transactions. That includes a more complicated scenario than trading Bitcoin like Bitcoin360 AI Tesla.
As a result, Iranian companies are now allowed to conduct international trade where the payment is made via cryptocurrency, he said. As an example, he mentioned the possibility of importing cars from abroad.
A first order was executed a week earlier. In addition, cars were imported worth $ 10 million dollars, with the payment with a cryptocurrency. An Iranian organization that represents importers had subsequently asked for clarification about the rules.
It is not clear whether the order was made with Bitcoin or another cryptocurrency. However, it is known that the Iranian government established a trading platform for local companies earlier this year to facilitate international trade with Bitcoin or other cryptocurrencies. Iran is subject to sanctions, which means that international payments via the traditional banking system are in many cases, not an option.
Iranian Bitcoin miners have also been legally obliged since 2020 to make their mined Bitcoins available to the central bank for import. Newly mined Bitcoins have the advantage that, in addition to the coinbase, no other transactions have been made, so they cannot be traced back to Iran via blockchain analysis.
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For a long time, Iran was a popular destination for Bitcoin miners due to its low local energy price; about 4% of the global hash rate in 2020 came from the country. Today, that percentage has dropped to just 0.12%.
In addition to the fact that Bitcoin miners have to hand in their mined Bitcoins, various developments in the past two years probably also played a role. For example, the Iranian government issued a ban on trading in Bitcoin, a licensing system for miners was introduced, fines and electricity rates were increased and ‘illegal miners’ were cracked down on. During the summer months of 2021 and 2022, legal Bitcoin miners were cut off from the grid for several weeks because the power grid could not handle it.
Many mining companies have probably stopped or moved abroad because of uncertainties and business risks. The new regulations should provide clarity and put an end to uncertainty.