Iranian Regulators Plans to Ban Bitcoin as Payment

Iranian Regulators Plans to Ban Bitcoin as Payment

Iranian Regulators plan to set up their own cryptocurrency as it plans to ban Bitcoin and other cryptocurrencies as a medium of payment inside the country. The Iranian parliament  proposed a regulation against the cryptocurrency usage within the country. 

Ban of Bitcoin as a Payment Option 

On July 2nd, Iranian Parliament drafted a bill to regulate use of cryptocurrencies and release their own national cryptocurrency. As per the bill, The Central Bank of Iran will serve as the main source regulating the cryptocurrency exchanges inside the country.  And it will also manage handling the domestic cryptocurrency market within three months. 

Moreover, the parliament bill stated,

“The Ministry of Industry, Mines and Trade will undertake to control the cryptocurrency mining industry and grant licenses to establish cryptocurrency mining farms.”

In line with the regulation, the Iranian Authority approved authorized licenses to 30 crypto mining farms to mint digital currencies. Iran’s federal authorities initiated this act to avoid illegal mining and miners of digital currencies within the nation. In May, the Iranian police impounded 7,000 bitcoin mining machines. These were all the reasons for banning bitcoin within the country. 

In addition, Iran also strategically plans to help mining businesses to increase the nation’s economy by $500 million in the Q1 2022. Therefore , in relation to the plan the miners must report their local entities to the central bank . 

More so, in April the Turkish government  also prohibited payments with Bitcoin to avoid the transaction’s risks. Even though the country ranks top in utilizing cryptocurrencies. Additionally, Iran itself banned cryptocurrency mining due to over consumption of energy for over four months. As a result Iran is more concerned about the future of cryptocurrency and the risks involved in the industry.

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