Iran seems to be attempting to ban foreign-mined cryptocurrencies for payments
May 7, 2021. Summarized by summa-bot.
Compression ratio: 47.5%. 1 min read.
Iran appears to be putting a regulatory framework in place to allow banks to make import payments in crypto.
According to a Tweet from news outlet Iran International, The Central Bank of Iran announced a decision from the Cabinet on Wednesday decreeing that digital currencies traded in the country must have been mined, or “extracted” there as well, barring the exchange of digital assets mined abroad.
In late April, the Central Bank of Iran ratified regulations that will allow banks and other financial institutions use crypto to pay for imports.
Under that framework, institutions can use crypto from state-licensed mining operations for purchases.
This new regulation appears aimed at ensuring that only crypto mined from approved farms will be used for imports.
Iranian research institute Majlis Research Center has been calling on the country to use cryptocurrency to circumvent crippling economic sanctions as far back as 2018, where they wrote in one report that digital assets could be leveraged for international trade:
Despite these new efforts at creating a state-sanction crypto import payments pipeline, Iran’s relationship with digital assets has been at times rocky over the last few months.