While the activity of Bitcoin mining is one that is legal in Iran but the securities watchdog of Iran insists that the Bank of Iran should do the regulation and therefore asks the bank to take over the task. The regulator however commits to take over the charge of regulating the virtual assets once the regulations are put in place by the Bank of Iran.
Mohammad Ali Dehqan, Chairman of Securities & Exchange Organization (SEO) of Iran talked about crypto regulation recently. He said that SEO has not carved out any plans so far for facilitating virtual assets’ trading within the capital market of Iran. However, the plan can be prepared on an immediate basis if the regulations with regard to virtual assets are provided. He said that the only regulations aiming towards virtual assets are that of mining activities, which are legal in Iran. Other than that, there are no crypto-specific regulations in the country covering the broader aspect of cryptocurrencies.
Dehan made further comments that the Central Bank of Iran’s focus should be on the usage of cryptocurrencies mined in the country. He suggested that mining activity is regulated in Iran but there is no regulation against the usage of virtual assets as instruments of trade. He insisted that the task of regulating the virtual assets should therefore be immediately taken by the Central Bank of Iran.
However, he noticed that so far there hasn’t been any announcement stemming from the Central Bank of Iran with regard to crypto regulation. He stated that until crypto-specific regulations are provided, SEO wouldn’t be able to facilitate crypto in the country’s capital market. He further emphasized that SEO would only be able to play its role when crypto regulation will be set up by the Central Bank of Iran.
Over the years crypto, as well as crypto investment, has earned huge popularity in the country of Iran. The regime also set up a friendly business environment for crypto miners in Iran. This then brought influx of foreign investors into the country and they thereafter developed mining plants. Some three months ago, the legal activity of mining was banned in Iran by the Government of Iran. However, the lawmakers of the state advised the Government to deal with the issue cautiously.
Thereafter, the lawmakers also proposed a law covering the broader aspect of crypto usage. However, the law hasn’t been approved yet and the Iranian investors are calling the government to immediately look into the matter. But there are provisions in the proposed law that discourage usage of crypto within the domestic payment system. However, what the law covers is that it allows the Government to supervise crypto exchanges while ensuring more support to the miners.
Very recently, the tax collecting authority of Iran too has come up with a proposal through which it intends to gather crypto tax. Yet the Iranian capital market is still without any crypto-specific regulations.