Cryptocurrency Mining Recognized in Iran, following US Sanctions
With the Trump administration pulling out of the Joint Comprehensive Plan of Action (JCPOA) or the Iran Nuclear Deal, an economic vice grip has been placed on Iran, who has turned to cryptocurrencies as the solution. Much like deteriorating Venezuela venturing into the crypto-space by issuing an oil-backed cryptocurrency, the Petro, Iran looks to venture into the crypto-space.
The Islamic Republic of Iran has formally recognized cryptocurrency mining as a valid industry and the country’s Central Bank is in the process of drafting a set of guidelines and policy framework for the crypto industry in the following 18 days.
Abolhassan Firouzabadi, the Secretary of Iran’s Supreme Council of Cyberspace, told IBENA, a news agency adept in Finance and Banking and connected to the Central Bank of Iran, that following the US sanctions, it will have to create a smooth flow of trade between Iran and its partners, and in that endeavor cryptocurrencies will be detrimental.
On the topic of cryptocurrency mining, Firouzabadi added that bitcoin had “been accepted as an industry in the government and all related organizations.” The list of Ministries mentioned are, The Ministry of Communications and Information Technology, The Ministry of Economic Affairs and Finance, The Ministry of Trade, The Ministry of Trade and The Ministry of Energy.
IBENA further added, “But the final policy for legislating it (crypto mining) hasn’t been declared yet.”
The US U-Turn
The Obama Administration spearheaded the Iran Nuclear Deal, which also had the approval of the P5 members (Permanent members of the UN Security Council) and Germany. The current American administration under President Donald Trump has re-imposed sanctions to choke out oil sale from Iran.
Behind only its rival Saudi Arabia and its neighbor to the west Iraq in terms of oil sales, Iran will, through their most recent policy decision, look to cryptocurrencies to compensate for the tremendous loss in revenue due to falling oil sales.
As mentioned earlier, crippling Venezuela has also issued their own cryptos, the Petro, but the result has been less than positive. Finding no takers, the Petro will seemingly fail with the US response being banning its citizens from investing in the digital currency.
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