Iran Regulates Bitcoin Mining
The Iranian President, Hassan Rouhani, has ordered the government to draw up a national approach for the emerging crypto industry. At the direction of this administration, Iran regulates Bitcoin mining under the Central Bank of Iran’s (CBI) supervision.
Chairing Iran’s economic coordination headquarters – a seminar for the national economic strategy – earlier this week, Rouhani told officials from the CBI, energy department and information and communication technology ministries that they needed to devise a new national strategy for crypto mining, including regulation and mining revenue, Iranian news site ArzDigital reported.
The news comes very soon after the Iranian parliament published a bill proposing to apply the country’s strict foreign exchange and currency smuggling regulation to cryptocurrencies. The new parliamentary law would also require crypto exchanges operating in the country to first register with the CBI. This is the new government approach to possibly prevent too much capital leaving the country. Just months ago, the U.S. administration raised concerns that Iranians were using digital assets in order to circumvent sanctions.
Where Iran stands in the Bitcoin world
Iran was one of the first countries to officially recognize cryptocurrency mining as a legitimate industry back in July 2019. The government now issues mining licenses, giving companies the right to mine and then sell off any digital assets produced. An industry report in January said Iran had issued over 1,000 such licenses in its first six months.
Iran currently has a 4% share in bitcoin’s total hash rate, according to the Bitcoin Mining Map, more than double what it was at the beginning of September 2019. The country wants to regulate its Bitcoin mining and increase its capacity to join other countries, like Japan, in a dollar-free economy.
It’s unclear why Iran Regulates Bitcoin Mining at the moment. Experts suspect as capital leaving the country in the form of cryptocurrency, the President wants to act fast. His intention is to ensure miners that a better condition for bitcoin miners in Iran is yet to come.