Last updated on January 20th, 2022 at 04:55 pm
Some lawmakers in Iran have opposed the restrictions placed on digital assets in the country, hence setting to change the government’s policies on cryptocurrencies.
According to them, using cryptocurrencies will improve the nation’s sanctioned and troubled economy.
“Taking a restrictive approach only pushes innovative solutions underground,” the spokesman of the Majlis Economic Commission, Gholamreza Marhaba, told Iranian media.
This move followed research conducted by the country’s Economic Commission.
“Our studies show that 50% of crypto activities are in the informal market. This is while supportive regulations can help enhance the contribution of the digital currency to the economy,” Marhaba added.
Under current government rules, crypto mining is legal in Iran for entities authorized by the Ministry of Industries, Mining, and Trade. The minting of digital coins was recognized as industrial activity in 2019. However, the trading of crypto assets isn’t tolerated.
Another lawmaker, Hadi Nejad Beigi, stated that the administration of former President Hassan Rouhani had been reluctant to legalize the crypto trade, fearing it would attract private investment.
It was further reported the lawmakers were pushing for the restriction on cryptocurrencies to be removed because the study showed cryptocurrency mining can solve some problems facing the Iranian energy sector, including financial issues.
This study also prompted the lawmakers to suggest that the government allow miners to buy electricity through the Iran Energy Exchange or even directly from local and foreign producers. They further proposed the introduction of “barter deals” such that mining companies can pay for the subsidized energy they use with the digital currency they mine.
Beigi said: “I think there are solutions. We need a mechanism to link the crypto miners and power plant owners.”
Another parliamentary member, Ehsan Arkani, added that by promoting the development of crypto mining, Iran can accelerate the rehabilitation and expansion of its power plants.
Arkani also highlighted the potential use of cryptocurrencies to evade U.S.-led economic sanctions. “Cryptos are becoming an inseparable part of the global financial industry,” Arkani pointed out, stressing that “Policymakers need to be aware of this technology so that we can make benefit from it.”
