Iran is turning to cryptocurrencies as the nation’s international trades experience major setbacks due to U.S. sanctions. The Middle Eastern country recently approved using cryptocurrencies as a payment means for business imports. The approval is a part of a broader set of crypto regulatory framework the country has enacted.
Iran has established a broader crypto regulatory framework
Prague-based media firm Radio Free Europe/Radio Liberty reported the development Monday. Per the report, the Iranian authorities officially approved the establishment of a set of crypto regulatory measures. The use of digital assets for imports is part of the measures. These measures will serve as a foundation for further regulatory moves on cryptocurrency activities in the country.
Seyed Reza Fatemi Amin, Iran’s Minister of Industry, Mines and Trade, highlighted the move’s significance. He noted that the regulatory framework addresses all contemporary issues that pertain to cryptocurrencies. Such issues as “how to provide fuel and energy for mining them, and how to grant license.” Hopefully, these regulations will also address the country’s antagonism towards crypto mining.
This effort demonstrates the Iranian government’s increasing interest in digital assets. Expectedly, the country, more than most, sees dependence on cryptocurrencies as a necessity. With this move, the government will be looking to regulate the cryptocurrency industry within the country further to push adoption.
Iran’s Deputy Minister of Trade said the use of crypto in foreign trade would be widespread in the country
This approval comes three weeks after the country placed its first import order funded with cryptocurrency. On August 8, Alireza Peymanpak—Deputy Minister of Iran’s Ministry of Industry, Mines and Trade—took to Twitter to announce that the country had concluded a foreign transaction trade paid for with crypto.
Payment for the import was worth $10 million. Paymanpak further mentioned that the country was planning to execute more crypto-funded international transactions in the future. “. . . by the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries,” he said.
Iran’s cryptocurrency adoption rate has been slow yet progressive. In August of last year, the then recently-established Iran Blockchain and Cryptocurrency Association (IBCA) began operations in the country. The association has the duty of proposing solutions to Iran’s blockchain challenges.