Iran agreed to officially recognize cryptocurrency mining as an industry, as reported by IBENA, a news agency affiliated to the Central Bank of Iran. The apex bank is expected to draft a policy framework for the industry in the next 18 days.
The news pushed the price of Bitcoin on a local exchange by nearly four-times the worldwide market average, to over $26,000. It was trading at $6,493.95 in US.
According to Abolhassan Firouzabadi, the Secretary of Iran’s Supreme Council of Cyberspace, the government and all related organizations have accepted crypto mining as an industry. They include government’s Ministry of Communications and Information Technology, Central Bank, Ministry of Industry, Mining and Trade, Ministry of Energy, as well and Ministry of Economic Affairs and Finance.
The final policy for legislating crypto mining is yet to be declared. Deepening the use of cryptocurrencies is expected to smoothen trade between the world’s third largest oil producer and its partners, especially amid the renewed US sanctions.
In late August, it was reported that the government of Iran was planning to lift the ongoing blanket ban on cryptocurrency and launch its own national cryptocurrency backed by Iranian rials. The blanket cryptocurrency ban by the government was first announced in April this year. This was intended to address concerns regarding money laundering and financing of terrorism.
The country may deliver new digital currency regulations in September. The proposed launch of the experimental indigenous cryptocurrency by the Iranian central bank could help the country overcome the heavy financial sanctions imposed by the US.