Iran’s Ministry of Commerce has approved the use of crypto payments for imports in an effort to boost trade in the country.
Use of cryptocurrencies for import
Iran’s Ministry of Industry and Trade has approved the use of cryptocurrency for import into the country amid ongoing international trade sanctions.
According to local news items Commerce Minister Reza Fatemi Amin confirmed that detailed regulations for cryptocurrency trading have been approved. So this is about using cryptocurrencies for trading and supplying fuel and electricity to Bitcoin and crypto miners in the country.
The minister outlined the regulation change at an auto industry exhibition on Sunday. This exhibition was just a week after the country first placed a $10 million import order for vehicles. It used crypto coins as a payment method. The Iranian Ministry of Commerce had previously indicated that the use of cryptocurrencies and smart contracts would be widely used in foreign trade by September 2022.
Clear regulations surrounding cryptocurrencies
The Iranian Import Association called for clear regulations around crypto. These regulations are necessary to ensure that local businesses and importers are not hindered by changing guidelines.
The minister noted that the new regulations specify all issues related to cryptocurrencies. This includes the process of licensing companies to mine crpyto in the country.
Local companies in Iran can import vehicles and various imported goods using cryptocurrencies. Previously, this had to be done with US dollars or euros.
International trade sanctions against Iran are largely due to opposition to its nuclear program. This program essentially removed the country from the global banking system.
Iran has since shifted its focus to accepting cryptocurrencies as a means of addressing and potentially circumventing import sanctions. Public blockchains such as Bitcoin and Ethereum have a decentralized nature. This means that they are not controlled by the government or central authorities.
Iran’s Ministry of Industry, Mines and Trade granted licenses to 30 crypto mining centers in the country in June 2021. More than 2500 permits have been approved for setting up new mining operations. In the months that followed, the government also took action against illegal mining operations. It even imposed three-month mining bans to ease the strain on the national power grid.